Signature of German nuclear waste contracts lead to improved 2021 financial outlook
The German utility companies PreussenElektra, RWE, ENBW and Vattenfall have signed a set of contracts with Orano for a total amount in excess of 1 billion euros, for the return of all the German nuclear waste still stored at the Orano la Hague plant. Discussions on the contractual terms and conditions of these contracts have been conducted with the support of the authorities of both countries. These contracts also allow for the settlement in full of all past commitments made in relation to the German utility companies' nuclear waste.
Between 1977 and 1991, contracts for the treatment of used fuel were signed with the four German utilities. These contracts resulted in the recycling of fuel elements from German nuclear reactors and in the conditioning of the residual waste. Under the contracts, 5,310 metric tons of fuel were processed at the Orano la Hague plant, thereby contributing to funding a share of the construction costs for the facilities.
In accordance with the terms of the contracts, the equivalent in mass and radioactivity of this waste contained in the used fuel elements must be returned to Germany. Over 97% of the total radioactivity has already been sent back to date.
After consultation between the German utilities and Orano, with the agreement of the German and French authorities, the balance in radioactivity and mass equivalent will be returned in the form of high activity vitrified waste and used packages by 2024.
The entry into force of the signed contracts is subject to the formal agreement of the German and French governments.
Improved financial outlook for 2021
All of these contracts will have a one-time positive impact on Orano's 2021 results.
Based on the signature of these contracts, and the operational and management elements planned for the second half of the year, Orano is therefore revising upwards its financial outlook for 2021, with:
• Strong one-time revenue growth,
• A 2021 EBITDA to sales ratio of between 26% and 29% (compared to a range of between 23% and 26% previously),
• Positive net cash flow.
This outlook remains dependent on the development of the Covid pandemic in France and in the countries where the Group operates, as well as on the coming into force of the above-mentioned contracts.
Between 1977 and 1991, contracts for the treatment of used fuel were signed with the four German utilities. These contracts resulted in the recycling of fuel elements from German nuclear reactors and in the conditioning of the residual waste. Under the contracts, 5,310 metric tons of fuel were processed at the Orano la Hague plant, thereby contributing to funding a share of the construction costs for the facilities.
In accordance with the terms of the contracts, the equivalent in mass and radioactivity of this waste contained in the used fuel elements must be returned to Germany. Over 97% of the total radioactivity has already been sent back to date.
After consultation between the German utilities and Orano, with the agreement of the German and French authorities, the balance in radioactivity and mass equivalent will be returned in the form of high activity vitrified waste and used packages by 2024.
The entry into force of the signed contracts is subject to the formal agreement of the German and French governments.
Improved financial outlook for 2021
All of these contracts will have a one-time positive impact on Orano's 2021 results.
Based on the signature of these contracts, and the operational and management elements planned for the second half of the year, Orano is therefore revising upwards its financial outlook for 2021, with:
• Strong one-time revenue growth,
• A 2021 EBITDA to sales ratio of between 26% and 29% (compared to a range of between 23% and 26% previously),
• Positive net cash flow.
This outlook remains dependent on the development of the Covid pandemic in France and in the countries where the Group operates, as well as on the coming into force of the above-mentioned contracts.
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+33 (0)1 34 96 12 15
press@orano.group
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