Annual figures fall at Urenco, but strong order book now extends to 2040s

Urenco, the Cheshire-based uranium processing specialist, has suffered declines in its annual revenues and EBITDA, but has reported a 27% increase in orders, to  €18.7bn, stretching into the 2040s.

The results for the year to December 41, 2024, showed revenues at €1.877.4bn (2023: €1.922.3bn) and EBITDA at €728.1m (2023: €886.7m), both down year-on-year, but in line with expectations.

The group said revenues and EBITDA were impacted by reduced delivery volumes, at pricing levels agreed in legacy contracts which are below today’s market prices. EBITDA margins are further under pressure from both increased nuclear provisions and higher operating expenses, as the business repositions itself for growth.

Net income was down at €180.3m (2023: €269.8m pre-exceptional), impacted by EBITDA.

Net cash was also down at €893.4m (2023: €1.032.2bn) post dividend payments, due to higher capital expenditure and increased working capital, primarily driven by a high volume of customer deliveries shortly before year-end, for which cash is received in 2025.

Capital expenditure was up by 67% to €471.4m, as the group’s capacity programme accelerates, with first capacity coming online in 2025.

CEO, Boris Schucht, said: “Our order book has risen to €18.7bn, an increase of 27% year-on-year, and extends into the 2040s. This is a great sign of confidence in Urenco, which underpins our cash flows for many years to come.

“Our lower net cash position this year is largely the result of increased investments in enrichment capacity at all four of our sites – our capacity programme – and increased working capital, primarily driven by a high volume of customer deliveries shortly before year-end, for which cash is received in 2025.

“As we commence making deliveries from our growing order book, our operating cash flow is expected to strengthen over time.

“Our capacity programme will deliver 1.8 million SWU (separative work unit) in total.

He added: “In 2024 we broke ground on our extension project in Almelo, the Netherlands, installed the first new centrifuges in Eunice, USA – on track to come online this year – and carried out preparation works in Gronau, Germany, where new centrifuges will also be introduced. We also completed refurbishment campaigns in Capenhurst, UK.

“Our work on the next generation of fuels continues apace. LEU+ (low enriched uranium plus, enriched up to 10%) will be commercially available from 2025, and HALEU (high assay low enriched uranium, enriched up to 19.75%) from 2030.

“With the support of a £196m grant from the UK Government, with matched investment from Urenco, we are building a HALEU plant at Capenhurst primarily to fuel small and advanced modular reactors. These are projected to play a vital role in the world’s future low-carbon energy supply.

“A key sustainability goal for Urenco is to be a net zero business by 2040. Last year we agreed a new low-carbon electricity supply for our site in the Netherlands, and we are on track to do the same for our other sites. Collectively, this will achieve a significant reduction in our scope 2 (indirect) carbon emissions.”

Looking ahead, Urenco said the pursuit of clean power targets and the need for energy security will continue to increase nuclear’s role in providing reliable baseload power, with considerable potential growth coming from the evolving market for advanced nuclear technologies and fuels. 

In 2024, six more member-states joined the pledge to triple nuclear capacity at the COP29 conference. This takes the total number of state-signatories to 31, with countries starting to translate this ambition into initiatives.

It says the uranium enrichment market is strong, with SWU spot prices continuing to rise. From an average $157/SWU at the end of 2023, they have continued an upward trajectory, reaching an average of $193/SWU by the end of December 2024, a 23% increase.

The growing demand and positive market conditions are enabling new contracts to be signed and the extension of existing ones, at sustainable pricing levels.

Urenco said its facilities in four countries ensure it is able to provide a uniquely secure and diverse supply of enrichment services for the civil nuclear industry.