Wednesday, 19 November 2014

Areva shares plunge after it drops financial targets

Shares in Areva have plunged after the French nuclear firm suspended its financial targets for 2015 and 2016.
The firm blamed delays to its Finnish nuclear project, a slower than expected restart for its Japanese reactors after the 2011 nuclear accident in Fukushima and a "still lacklustre" nuclear market for the decision.
Areva said it was reviewing both its mid-term funding plan and future goals.
The shares were down 15.5% in morning trading.
However, Areva said
both its revenue and profit forecasts for this year would not be affected.
Areva, which is 87%-owned by the French government, said it would present a new financial outlook for 2015-2017 by the time of its full-year results.
The firm's latest announcement follows a series of warnings in recent months. In August, it reported a €694m (£555m) loss for the first half of the year and said 2014 revenue would fall 10%, more than the 2-5% drop it originally forecast in February.
In October, it also announced capital spending cuts and new asset sales.
The firm has been hit by a drop in demand for nuclear power following the 2011 nuclear accident in Fukushima, which was triggered by a massive earthquake and tsunami, and the rise in the use of shale gas in the US.

BBC Business

No comments:

Post a Comment