Improvement of EBITDA margin to 16% (vs. 12% in H1 2015) in a still unfavorable environment
Figures presented with application of IFRS 5 rules related to “operations sold, discontinued or held for sale”.
Key figures
- Backlog of €32.8 bn (vs. €29 bn end of 2015)
- Revenue: €1.930 bn (vs. €1.849 bn in H1 2015, +4.4% LFL)
- EBITDA: €310 m (vs. €226 m in H1 2015)
- Operating income: €86 m (vs. €4 m in H1 2015)
- Net income attributable to owners of the parent: - €120 m (vs. -€206 m in H1 2015)
- Operating cash flow: -€121 m (vs. €221 m in H1 2015)
- Net cash flow from company operations: -€497 m (vs. -€121 m in H1 2015)
- Net debt : -€7.044 bn (vs. -€6.323 bn at the end of 2015)
Highlights of the recent period
- Implementation of the strategic roadmap:
- Presentation of the project to create NEW CO, a company refocused on the nuclear fuel cycle during the “2016-2020 roadmap” group presentation on June 15, 2016;
- Serious marks of interest from strategic investors to take part in the capital increase of NEW CO;
- Signing of a Memorandum of Understanding with EDF confirming the sale of AREVA NP’s operations allowing for the implementation of the new legal framework chosen, leaving certain contracts within the scope of AREVA SA (including OL3 project);
- Sale of Canberra, option to sell Adwen;
- Opening of an in-depth review proceeding by the European Commission on the support from the French State for the group’s financial restructuring;
- Implementation of the performance plan:
- €500 m EBITDA impact of the performance plan on a yearly basis (€324 m at the end of 2015) compared to 2014, equivalent to half of 2018 target of €1 Bn ;
- Reduction in group workforce in line with the objective of 6,000 job cuts by the end of 2017. (3,400 departures since the end of 2014).
- Progress on major projects:
- Taishan 1: following the successful cold testing, hot start-up testing will begin soon;
- Olkiluoto 3: respect of the key milestones with submittal of the operating license request, continued electromechanical installation activities, and confirmation of the sequence for tests start-up, to begin in October;
- Flamanville 3: completion in June of the instrumentation and control system testing configuration for start-up testing scheduled in the fall.
Financial outlook for the current year
In view of the achievements of the 1st half of 2016 and the financial outlook for the 2nd half, net cash flow from company operations is now expected to be close to -1.5 billion euros in 2016 rather than the initial forecast of between -2 billion and -1.5 billion euros.
12-month liquidity
The company’s liquidity for 2016 is ensured by lines of credit drawn on January 4 and 5, 2016 in the amount of 2 billion euros, and by a bridging loan of 1.2 billion euros granted in April by a banking pool, which would be due in January 2017 if drawn.
Beyond that, the group’s liquidity will be ensured by the capital increase planned for early 2017. In the event of a temporary delay, AREVA would request a shareholder loan. These transactions will be carried out in compliance with European regulations.
The AREVA Board of Directors, meeting this morning under the chairmanship of Philippe Varin, approved the financial statements for the period ended June 30, 2016.
Chief Executive Officer Philippe Knoche offered the following statement concerning the results:
“The first half was an extremely active one for the consolidation of our base of operations and for the deployment of the strategic roadmap, where numerous milestones have been achieved.
Our backlog and revenue are rising, while operating profitability continues to improve notably thanks to our performance plans.
On June 15, AREVA presented its action plan for the creation of NEW CO, which detailed the achievements necessary to the complete and effective transformation of AREVA. In particular, they include the plan to sell AREVA NP's operations, which met a new milestone with the signing of a memorandum of understanding with EDF, confirming the sale price and the schedule for closing by the end of 2017. Added to this memorandum of understanding was the completion of the sale of Canberra, the shut-down of the Bioenergy business and the upcoming sale of Adwen.
The group intensified its discussions aimed at attracting strategic investors which could participate in the capital increase for NEW CO. Signs of interest have already been given. Meanwhile, liquidity requirements were secured for 2016.
Armed with these actions and achievements, we refine our objective for net cash flow from company operations, putting it at -1.5 billion euros for the current year, in the upper end of the range indicated at the beginning of the year.”