Orano reported strong financial results for 2024 with a 23% revenue increase, projecting more growth despite challenges in Niger. CEO Nicolas Maes announced plans for substantial investments, including a new uranium mining project in Mongolia and a uranium enrichment facility in the US. The company also aims to diversify its supply sources through various international projects, while addressing the operational impacts due to its subsidiaries in Niger.
Orano’s CEO, Nicolas Maes, announced to investors that the company achieved “exceptional” financial results in 2024, projecting continued positive trends for 2025 despite challenges related to operations in Niger. Revenue rose 23% year-on-year to EUR5.87 billion, significantly influenced by newly secured contracts for the repatriation of Japanese nuclear waste, alongside favorable conditions in the mining sector. The company’s EBITDA also increased markedly to EUR2.067 billion from EUR1.228 billion in 2023.
The loss of operational control over its Niger subsidiaries, Somaïr, Cominak, and Imouraren, was officially recognized in December, leading to their removal from Orano’s consolidated financial statements. While Maes acknowledged the financial impact of these changes, he emphasized that operational income from the mining segment fell from EUR196 million to EUR122 million, a decline somewhat mitigated by increasing uranium prices. He expressed concern for the 900 employees affected, underscoring their hard work and uncertainty regarding future compensation.
Despite the setback in Niger, Maes confirmed that Orano’s delivery commitments for 2024 remain unaffected. The company anticipates further revenue growth, approximating EUR5 billion for 2025, bolstered by significant ongoing investments. This includes an agreement with the Mongolian government for the development of the Zuuvch Ovoo uranium mine, which will require around USD500 million in investments over four years, with operations expected to commence in 2028-2029.
In addition to the Mongolian investment, Orano is exploring projects in Uzbekistan, Canada, and reviving the Trekkopje project in Namibia, which has been on hold since 2012. These efforts aim to diversify their supply sources effectively. Furthermore, Maes reassured stakeholders that Orano’s plans for a uranium enrichment plant in Tennessee, known as Project IKE, will proceed without disruption from changes in the US administration, with decisions on the project expected by 2026 or 2027.
In conclusion, Orano has demonstrated significant financial resilience and growth prospects amid operational challenges in Niger. With anticipated investments and ongoing projects in Mongolia and other countries, the company aims to maintain its positive trajectory towards 2025. The management’s commitment to supporting affected employees and pursuing new supply diversification strategies underscores Orano’s proactive approach to navigating industry dynamics and enhancing future stability.
Original Source: world-nuclear-news.org
