Deal Expands and Diversifies Centrus’ Supply Base to Support New
Sales Opportunities
BETHESDA, Md.--(BUSINESS WIRE)--May 3, 2018--
Centrus Energy Corp. (NYSE American: LEU) announced today that it is
expanding its supply arrangements with Orano Cycle (Orano), a global
nuclear fuel cycle company based in France, thereby further diversifying
and expanding Centrus’ enrichment supply base to support its customers’
requirements. Under an agreement signed on April 27, 2018, Orano will
provide Centrus with a substantial long-term supply of separative work
units (SWU) beginning after 2020. The supply from Orano provides Centrus
with access to over 6 million SWU through 2030, a quantity that is
equivalent to more than 50 reactor-years of nuclear fuel.
“This long-term supply agreement with Orano enhances our ability to meet
the needs of current and future customers and reflects our commitment to
be the most diversified global supplier of enriched uranium,” said
Daniel B. Poneman, president and chief executive officer. “The added
supply will help us compete for new sales opportunities around the world
so that we can continue to pursue our long-term goal of re-establishing
a domestic uranium enrichment capability.”
“Through this long-term contract, Centrus and Orano reinforce their
strong relationship, with the goal of enhancing diversity and security
of supply for nuclear electricity producers,” said Antoine Troesch,
senior executive vice president, Chemistry and Enrichment Business Unit,
for Orano. “This contract shows the trust in Georges Besse 2, our
state-of-the-art enrichment facility in Tricastin, France.”
The long-term agreement provides for deliveries from 2023 through 2028,
with options for 2029 and 2030. Centrus has significant flexibility to
adjust its purchase quantities as needed to meet its sales and delivery
requirements subject to certain minimum purchase obligations.
The supply from Orano will enable Centrus to add new sales to its
long-term order book, which stood at $1.3 billion as of December 31,
2017, and extends for more than a decade.
Centrus’ diverse base of supply now includes Orano and Joint Stock
Company TENEX, along with its existing inventory and other sources of
supply around the world.
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 - 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 (the “Russian Supply Agreement”);
risks related to our ability to sell the LEU we procure pursuant to our
purchase obligations under our supply agreements, including the Russian
Supply Agreement; 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; movement and timing of customer orders; risks
associated with our reliance on third-party suppliers to provide
essential services to us; risks related to 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 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 outcome of legal proceedings and other contingencies
(including lawsuits and government investigations or audits); the
competitive environment for our products and services; changes in the
nuclear energy industry; the impact of financial market conditions on
our business, liquidity, prospects, pension assets and insurance
facilities; 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 this and our other filings with the
Securities and Exchange Commission, including our Annual Report on Form
10-K for the year ended December 31, 2017. We do not undertake to update
our forward-looking statements except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180503005699/en/
Source: Centrus Energy Corp.
Centrus Energy Corp.
Media: Jeremy Derryberry, 301-564-3392
Investors:
Don Hatcher, 301-564-3460
