Areva, EDF, Nuclear

$3.3bn losses to prompt Areva assets sale

French nuclear group Areva is expected to announce a loss of around $3.3bn from its 2014 accounts.

The French newspaper Le Journal Dimanche (JDD) has predicted the result soon after the group said it expected to book significantly higher provisions and write downs on assets.

Analysts on average expect the company to report a net loss of 1.14 billion euros, which compared with a net profit in 2013 of 192 million euros, according to Thomson Reuters data.
Philippe Knoche
Areva swung to a 694 million euro first-half loss last year as struggling utilities cut maintenance costs and the nuclear power market remained in the doldrums following the 2011 Fukushima disaster. Chief executive Philippe Knoche, appointed last month, said things got even worse in the second half of the year.

The JDD quoted a government source as saying that wide-ranging cost-cuts would need to be undertaken and that management generally accepted that the group needed to slim down.

The company’s mining operations are now being examined for potential sell-off as well as its logistics business and a unit that dismantles nuclear plants.

Areva is also drawing up a plan to let EDF take a stake in some of its units, Reuters reports.