French N-giant Areva suffers $5.3 billion loss
6 March 2015 1:26 AM GMT
French nuclear group Areva confirmed on Thursday record net losses in 2014 of 4.8 billion euros ($5.3 billion) after it was forced to absorb costs linked to delays to its flagship next-generation reactor.
The mostly state-owned company, which had forecast losses of 4.9 billion euros, said it would make savings worth around one billion euros over the next few years and announce a financing plan by the end of March. “The scale of the net loss for 2014 illustrates the two-fold challenge confronting Areva: continuing stagnation of the nuclear operations, lack of competitiveness and difficulties in managing the risks inherent in large projects,” chief executive Philippe Knoche said in a statement.
Areva has taken a particular hit in the past year from delays in building its Olkiluoto 3 nuclear plant in Finland, as well as difficulties with its renewable energy contracts. The company also said earlier there were impairment charges that brought total write-downs on assets and losses on projects to 4.35 billion euros.
The mostly state-owned company, which had forecast losses of 4.9 billion euros, said it would make savings worth around one billion euros over the next few years and announce a financing plan by the end of March. “The scale of the net loss for 2014 illustrates the two-fold challenge confronting Areva: continuing stagnation of the nuclear operations, lack of competitiveness and difficulties in managing the risks inherent in large projects,” chief executive Philippe Knoche said in a statement.
Areva has taken a particular hit in the past year from delays in building its Olkiluoto 3 nuclear plant in Finland, as well as difficulties with its renewable energy contracts. The company also said earlier there were impairment charges that brought total write-downs on assets and losses on projects to 4.35 billion euros.
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