Orano reported strong financial results for 2024, with revenues up 23% to EUR5.87 billion, driven by contracts related to Japanese nuclear waste. Despite the loss of control over Niger operations, the company expects positive revenue trends to continue and has plans for further investments, particularly in Mongolia and the U.S.
Orano, a company specializing in nuclear fuel and waste management, has reported remarkable financial performance in 2024, according to CEO Nicolas Maes. The firm achieved a 23% year-on-year revenue increase, totaling EUR5.87 billion (USD6.15 billion), driven primarily by significant export contracts related to Japanese nuclear waste. Additionally, bullish trends in the mining and front-end sectors have contributed to this financial success, with EBITDA rising to EUR2.067 billion from EUR1.228 billion in 2023.
Despite the stellar financial results, Maes acknowledged the company faced operational challenges due to the loss of control over its subsidiaries in Niger. Orano has formally recognized its inability to operate its Niger entities, including Somaïr, Cominak, and Imouraren. Contracts were withdrawn by the Niger government, leading to an arbitration process aimed at resolving the ongoing disputes over licenses and operational control.
In addressing the future of its Niger subsidiaries, Maes expressed concern for the 900 employees impacted by the operational challenges and uncertainty regarding their remuneration. Operating income from Orano’s Mining segment fell from EUR196 million in 2023 to EUR122 million post the operational loss, though rising uranium prices and favorable exchange rates mitigated some financial impacts.
Looking ahead, Orano aims for continued positive trends and forecasts revenues nearing EUR5 billion for 2025. The company has engaged in a significant investment agreement with the Mongolian government for the Zuuvch Ovoo uranium mine’s development, with an anticipated investment of approximately USD500 million over four years. This project is expected to contribute to long-term supply diversification efforts.
Furthermore, Orano is actively exploring opportunities in Uzbekistan and Canada while revisiting the Trekkopje project in Namibia. The company remains committed to its US operations, stating that recent political changes in Washington are not expected to adversely affect plans for a new uranium enrichment plant in Tennessee, known as Project IKE, for which a decision is expected by 2026 or 2027.
In summary, Orano has reported a successful 2024, marked by exceptional revenue growth driven by Japanese waste contracts and robust market conditions. The loss of operational control in Niger presents challenges for the company and its staff, but Orano is strategically investing in new projects to ensure future success. Despite geopolitical uncertainties, the company anticipates maintaining positive financial trends moving into 2025.
Original Source: world-nuclear-news.org
