OREANDA-NEWS. August 12, 2014. Backlog: EUR44.9bn (+EUR 3.5bn vs. 12/31/2013  thanks to the treatment-recycling agreement with EDF)

Negative net income attributable to equity owners of the parent (-EUR 694m):

Losses in discontinued renewable activities (EUR 373m)

One-off impact of treatment-recycling agreement with EDF (-EUR 95m)

Provisions and assets impairment

Positive free operating cash flow despite lower activity level

Revenue: EUR 3.889bn (-12.4% LFL)

EBITDA: EUR 256m (-EUR 231m vs. H1 2013)

Free operating cash flow: EUR 98m (+EUR 256m vs. H1 2013)

Strengthened recovery actions in an unfavorable economic environment

2015 cost reduction objective secured and raised to EUR 1.2bn by 2016

Capital expenditure reduced over 2014-16

Revised financial outlook

The Supervisory Board of AREVA, meeting yesterday under the chairmanship of Pierre Blayau, examined the financial statements for the period ended June 30, 2014 submitted by the Executive Board. Chief Executive Officer Luc Oursel offered the following comments on the results:

“The group posted a net loss in the first half of the year. This is the consequence of losses recorded in renewables operations, additional project-related provisions, asset write-downs and a nuclear market environment that has still deteriorated.

Our backlog has strengthened thanks to the signing of the agreement through 2020 with EDF for used fuel treatment and MOX fuel production. Though it has a short-term adverse impact on the group’s results, it provides these operations with long-term visibility and strengthens our strategic partnership with EDF.

Despite a decline in revenue that was greater than anticipated, the group achieved positive free operating cash flow, an increase compared with the first half of 2013. The success of our recovery actions partially offset the downturn in activity. These actions will be reinforced in the second half of the year to adapt to market conditions.

The group continues to restructure its operations in renewable energies by entering into partnerships in promising markets, such as offshore wind and energy storage, and by discontinuing loss-making operations, such as concentrated solar power.”