Areva: the recovery operation is launched – Challenges.fr

Areva calendar is increasingly dictated by the vicissitudes of the Finnish Olkiluoto EPR. On February 26, during the presentation of its annual results, the nuclear group had raised “significant progress” on its relationship with its customer, the Finnish utility TVO. Overconfidence, because three months later to the day, negotiations were broken off between the two parties. Since May 26, radio silence. A wound because this leaden negotiations on the sale to EDF of activity Areva NP reactors. First customer of Areva -it contributes to 54% of Sales-, EDF is ready to resume Areva NP for € 2.5 billion. But before making a final offer, the electrician wants to be immune from the Finnish risk. Because of the Areva-TVO dispute, the French nuclear industry was in a bind and Areva had to react. Wednesday morning before the analysts, the CEO Philippe Knoche and CFO Stéphane Lhopiteau presented a new reorganization of the group.

fuel cycle activities (extraction, enrichment and waste treatment , decommissioning) will be housed in a structure called new provisionally Co. a new entity called new NP recover the activity reactors except the burning issue Olkiluoto. And it is this structure which will be sold to EDF. The signing should take place before the end of the year, closing before the end of 2017. As for the parent company Areva SA, it will recover Olkiluoto and the rest of the activities held for sale: Areva TA subsidiaries (propulsion and reactors research), Canberra (nuclear measurements) Adwen (a joint venture in wind with Spanish Gamesa). After the disposals, Areva SA should eventually play the role of bad bank and holding company, says a close to the company.

An increase of capital of 5 billion euros

New Co as Areva SA, will benefit from part of the capital increase of 5 billion euros which must be approved by Brussels. It could intervene early 2017. According to Bercy, the state could contribute up to 3.5 billion. It should control at least 67% of the new entity. “New Co is an attractive dérisquée activity for third party investors,” says Stéphane Lhopiteau. Chinese CNNC has expressed interest. And he may be joined by other Asian shareholders. New Co will receive 8 billion of new money: 5 billion from 3 billion recapitalization and the fruit of disposals. But it will also settle a huge debt of 6.3 billion euros. After losing 6.8 billion euros last two years, the new Areva, is it likely to head in the race again? With a backlog amounting to EUR 33 billion, which represents eight years of activity, its leaders want to believe. “The goal is clear, is to be the leading player in the nuclear cycle activities,” said Philippe Knoche.

In 2020, the company targets a gross surplus equivalent to 25% of operating revenues and a 10% higher operating income. In his lecture, the Director General presented encouraging figures. Areva is for example the world leader in the treatment recycling (with 70% market share) in the storage (30%) in logistics services (20%). This is all well and good. The question is whether this sector still has a future. In recent years, nuclear costs with the new post-Fukushima standards has increased. While those renewable continue to decline. Certainly New Co is positioned on a recurring business. But a business that may be declining. Except on one segment. That the dismantling of plants.