Centrus Secures $85 Million to $110 Million in New Sales Commitments Over Past Six Months
Expands Presence in U.S. and European Markets
BETHESDA, Md.--(BUSINESS WIRE)--Nov. 12, 2018--
Centrus Energy Corp. (NYSE American: LEU) announced today that it has
secured new nuclear fuel sales contracts and commitments with utility
customers over the past six months with an estimated value of
approximately $85 million to $110 million, depending on quantities
elected by customers, with deliveries from 2018 through 2030.
“The past several months have been productive for our sales team in
winning new business and broadening our customer base,” said Centrus
President and CEO Daniel B. Poneman. “We are encouraged not only by
these new sales, but also by the fact that the published price
indicators for the spot enrichment market have risen in each of the last
two months, which are the first such increases since 2010.”
The sales results follow Centrus’ announcement as part of its 10-Q
filing for the third quarter of 2018 that its unit cost of sales for
enrichment has declined by 15 percent in the first three quarters of the
year compared to the same period in 2017. The company expects a larger
decline in 2019 cost of sales. Additional reductions are expected in
subsequent years. The lower pricing of new supply contracts and pricing
adjustments on existing contracts will benefit the company’s bottom line
and help Centrus continue to win new sales.
Poneman noted the significance of securing a new customer in the
European Union, where trade restrictions on imports of non-EU nuclear
fuel have historically made it difficult for U.S. nuclear fuel companies
to win sales. Centrus’ long-term supply agreements with Orano Cycle,
based in France, will expand Centrus’ access to this important global
market.
The estimated value is $85 million for the minimum purchase quantities
or $110 million if customers elect to purchase additional flexible
quantities. The estimates include signed contracts along with firm
commitments under accepted proposals received during the last six months.
About Centrus Energy
Centrus is a trusted supplier of nuclear fuel and services for the
nuclear power industry. Centrus provides value to its utility customers
through the reliability and diversity of its supply sources – helping
them meet the growing need for clean, affordable, carbon-free
electricity. Since 1998, the Company has provided its utility customers
with more than 1,750 reactor years of fuel, which is equivalent to 7
billion tons of coal.
With world-class technical capabilities, Centrus offers turnkey
engineering and advanced manufacturing solutions to its customers. The
Company is also advancing the next generation of centrifuge technologies
so that America can restore its domestic uranium enrichment capability
in the future. Find out more at www.centrusenergy.com.
Forward Looking Statements
This news release contains “forward-looking statements” within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) - that is, statements related to future
events. In this context, forward-looking statements may address our
expected future business and financial performance, and often contain
words such as “expects”, “anticipates”, “intends”, “plans”, “believes”,
“will”, “should”, “could”, “would” or “may” and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For Centrus Energy Corp.,
particular risks and uncertainties that could cause our actual future
results to differ materially from those expressed in our forward-looking
statements include risks: the continued impact of the March 2011
earthquake and tsunami in Japan on the nuclear industry and on our
business, results of operations and prospects; the impact and potential
extended duration of the current supply/demand imbalance in the market
for low-enriched uranium (“LEU”); our dependence on others for
deliveries of LEU including deliveries from the Russian government
entity Joint Stock Company “TENEX” (“TENEX”) under a commercial supply
agreement with TENEX and deliveries under a long-term supply agreement
with Orano Cycle; risks related to our ability to sell the LEU we
procure pursuant to our purchase obligations under our supply
agreements; risks relating to our sales order book, including
uncertainty concerning customer actions under current contracts and in
future contracting due to market conditions and lack of current
production capability; risks related to financial difficulties
experienced by customers, including possible bankruptcies, insolvencies
or any other inability to pay for our products or services; pricing
trends and demand in the uranium and enrichment markets and their impact
on our profitability; risks related to existing or new trade barriers
and contract terms that limit our ability to deliver LEU to customers;
risks related to actions that may be taken by the U.S. government, the
Russian government or other governments that could affect our ability to
perform or the ability of our sources of supply to perform under their
contract obligations to us, including the imposition of sanctions,
restrictions or other requirements; the impact of government regulation
including by the U.S. Department of Energy and the U.S. Nuclear
Regulatory Commission; the competitive environment for our products and
services; changes in the nuclear energy industry; revenue and operating
results can fluctuate significantly from quarter to quarter, and in some
cases, year to year; and other risks and uncertainties discussed in our
filings with the Securities and Exchange Commission, including under
Part 1. Item1A - “Risk Factors” in our Annual Report on Form 10-K for
the year ended December 31, 2017.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181112005322/en/
Source: Centrus Energy Corp.
Media: Jeremy Derryberry (301) 564-3392, derryj@centrusenergy.com
Investors:
Dan Leistikow (301) 564-3399, leistikowd@centrusenergy.com