By Frank Lewis
On Friday Centrus Energy Corp. reported a net loss of $15.1 million or $1.68 per basic and diluted share for the quarter ended June 30, 2015, compared to a net loss of $28.0 million or $5.71 per basic and diluted share for the second quarter 2014. For the six months ended June 30, 2015, Centrus reported a net loss of $30.5 million compared to a net loss of $78.8 million in the same period of 2014.
Gross profit increased $0.8 million in the three months and $28.6 million in the six months ended June 30, 2015, compared to the corresponding periods in 2014, reflecting charges in the prior periods related to the wind-down of the Paducah Gaseous Diffusion Plant (GDP).
“With our long track record as a reliable supplier and our broad relationships across the global industry, we are well positioned to promote reliable and commercially attractive supplies to our customers,” Daniel B. Poneman, Centrus president and chief executive officer, said. “We are intently focused on securing new business and diverse sources of supply to support our growth in the coming years. We are taking a customer-first approach, since competitively priced nuclear power will drive Centrus’ long-term success.”
Revenue for the second quarter of 2015 was $63.3 million, a decrease of $57.9 million or 48 percent compared to the same quarter of 2014. In the sixth month period ending June 30, 2015, revenue was $231.1 million, a decrease of $38.7 million or 14 percent from the same period in 2014.
“While we are in the early stages of our fresh start following reorganization and still have a lot of work to do, we believe the company is on the right trajectory,” Poneman said. “Our second quarter results reflect our declining costs, improving margins, and actions to manage our order book effectively.” Poneman said.
Cost of sales for the contract services segment increased $5.4 million or 32 percent in the three months and $22.5 million or 107 percent in the six months ended June 30, 2015, compared to the corresponding periods in 2014, primarily due to American Centrifuge work performed under the ACTDO (American Centrifuge Technology Demonstration and Operations) Agreement in the current periods.
American Centrifuge costs incurred by the Company that are outside of the current ACTDO Agreement are included in advanced technology costs, including certain demobilization and maintenance costs. Such costs totaled $4.0 million in the three months and $5.8 million in the six months ended June 30, 2015, and $7.0 million in May-June 2014.
Poneman said Centrus will continue its transition during 2015, and they expect to deliver significantly less SWU (Separative Work Units) to customers than when they began their transition in 2013. In 2013, the company delivered approximately 8 million SWU, and during 2014, they delivered approximately 3 million SWU. Centrus expects to deliver approximately 2 million SWU in 2015 and will continue to execute their contract with Oak Ridge National Laboratories (ORNL) to conduct research, development and demonstration of the American Centrifuge technology under the terms of the ACTDO Agreement.
Specifically, Centrus anticipates SWU and uranium revenue in 2015 in a range of $350 million to $375 million and total revenue in a range of $425 million to $450 million. They expect to end 2015 with a cash and cash equivalents balance in a range of $175 million to $200 million.
Reach Frank Lewis at 740-353-3101, ext. 1928, or on Twitter @franklewis.