Orano projects a positive 2025 after recording strong financial results in 2024, despite losing control over its Niger operations. Revenue rose to EUR5.87 billion, supported by contracts with Japan and the mining sector. While operational challenges arose in Niger, Orano plans to invest significantly in future projects, ensuring continued revenue growth and diversification.
Orano anticipates a positive outlook for 2025, largely due to exceptional financial outcomes in 2024, despite losing control of its operations in Niger. The company reported a revenue increase of 23% year-on-year, reaching EUR5.87 billion, driven by contracts related to the return of reprocessed nuclear waste to Japan and strong market conditions in the mining sector. EBITDA rose significantly to EUR2.067 billion, highlighting robust financial performance.
CEO Nicolas Maes acknowledged the dual challenges as the company experienced remarkable financial results while dealing with operational difficulties stemming from the loss of its Nigerien subsidiaries, including Somaïr, Cominak, and Imouraren. These subsidiaries were removed from Orano’s financial statements in December 2023 after losing operational control over the Somaïr uranium mine. Consequently, the operating income from Orano’s mining segment declined from EUR196 million in 2023 to EUR122 million in 2024, though uranium price increases partially mitigated the impact.
Maes expressed concern for the future of approximately 900 employees in Niger, who are uncertain about their job security following the subsideries’ inability to generate sales revenue. He assured investors that the situation in Niger would not hinder Orano’s delivery commitments for 2024. Looking forward, Maes is optimistic that positive financial trends will continue, projecting nearly EUR5 billion in revenue for 2025 as the company ramps up its investment initiatives.
The significant back-end contracts with Japanese utilities for 2024 are described as unique occurrences, yet Orano remains focused on expanding its investment portfolio. An investment agreement with Mongolia for the Zuuvch Ovoo uranium mine signals a significant commitment, with plans to invest around USD500 million over the next four years. This project could potentially diversify Orano’s supply chain and is anticipated to commence operations around 2028-2029.
Orano is also exploring several diversification opportunities, including initiatives in Uzbekistan and Canada, alongside the reconsideration of its mothballed Trekkopje project in Namibia. In terms of its US operations, Maes sees no significant influence on plans for a uranium enrichment plant in Tennessee, stating that bipartisan support for the industry is strong. A decision regarding this project, named Project IKE, is expected by 2026 or 2027.
In summary, Orano is set to navigate challenges in 2025 with a strategy focused on expansion and diversification, despite operational setbacks in Niger. The company experienced substantial financial growth in 2024 driven by international contracts and favorable market conditions. Looking ahead, their investment in Mongolia and other global projects supports a continued positive outlook for revenue generation and supply diversification.
Original Source: www.world-nuclear-news.org
