Kenneth Fletcher
RW Monitor
3/20/2015
Uranium enrichment company Centrus Energy Corporation reported a net income of $297.8 million for 2014, a big boost compared to the net loss of $158.9 million the company experienced in 2013, according to financial results released this week. Revenue from low enriched uranium sales declined 65 percent last year after the end of operations at the Paducah Gaseous Diffusion Plant, while that was offset partially as the handover of the Paducah plant to the Department of Energy decreased non-production expenses. Centrus also saw increased revenue from contract services under a subcontract with Oak Ridge National Laboratory for American Centrifuge work. However, in the fourth quarter of 2014, Centrus saw a net loss of $42.3 million.
The results come after the company completed a Chapter 11 bankruptcy restructuring last year and switched its name from USEC to Centrus in a rebranding effort. Earlier this month, Centrus announced that it has appointed former Deputy Energy Secretary Dan Poneman to lead the company. “2014 will be remembered as a year of transition for our Company,” John Castellano, interim president and chief executive officer, said in a statement. “We successfully completed the research, development and demonstration program for the American Centrifuge technology under our cooperative agreement in April and transitioned to the ACTDO contract in May. We completed the balance sheet restructuring in September and returned the Paducah GDP to the government in October. The selection of Daniel Poneman as the new president and chief executive officer of Centrus is an important next step in our transition. We have a solid team in place to move Centrus forward.”
Centrus expects to continue to reduce its separative work units of LEU delivery to customers, as it focuses on its Russian uranium barter program and completing the American Centrifuge subcontract. In 2013 it delivered 8 million SWU, in 2014 3 million SWU and in 2015 it expects to deliver 2 million SWU. This year the company expects SWU revenue of $350 million to $375 million and total revenue in a range of $425 million to $450 million.
