Areva will report an operating loss of up to $2.1bn (€1.6bn) this year, largely from a ruinous bet on uranium prices with the 2007 acquisition of a small-cap miner
Reuters reports that the company plans to limit its dividend payout to a quarter of net profit for the next two years as new Chief Executive Luc Oursel seeks to cut spending and sell assets after being hit by cancelled orders and project delays post-Fukushima.
Areva, which is unveiling a fresh strategy to investors on Tuesday, said on Monday that it was taking €2.4 billion of charges this year and that it expected to post a €1.4 billion to €1.6 billion. operating loss.
“These past years, Areva has not generated enough cash flow to finance investments undertaken out of a desire to grow at all costs,” Oursel told Le Figaro newspaper, adding that Areva was in a difficult financial situation and must focus on results.
The write-downs are tied to a disappointing performance at the group’s African uranium mines and delays at a new generation nuclear power plant in Finland.
Areva added that it hoped to win 35 percent of the available market for safety work following Japan’s Fukushima nuclear disaster earlier this year.
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