TIDM44ZP
RNS Number : 2891V
Urenco Finance N.V.
06 August 2020
news release
Date: 6 August 2020
Urenco Group - Half Year 2020 Unaudited Financial Results
London - 6 August 2020 - Urenco Group ("Urenco" or "the Group"),
an international supplier of uranium enrichment services and
nuclear fuel cycle products, today announces its results for the
half year ended 30 June 2020.
Summary
-- Revenue down EUR187.3 million on H1 2019 (23.3% decrease) and
EBITDA down EUR145.3 million (24.9% decrease) due primarily to
lower levels of SWU deliveries to customers in the period.
-- Net income (pre-exceptional item) down by EUR75.2 million on
H1 2019 (27.5% decrease) and Net income (post-exceptional item)
down by EUR100.8 million (36.9% decrease).
-- Cash generated from operating activities remained robust at
EUR498.5 million in H1 2020 (7.6% increase on H1 2019).
-- Effective COVID-19 preparation, response and recovery plans,
continuous plant operations and customer deliveries, while ensuring
strong support to our employees, and no assistance from Government
employment schemes.
-- No significant financial impact in the reporting period from
COVID-19 pandemic; liquidity remains strong.
-- Contract order book has an approximate value of EUR 10.2
billion (EUR10.6 billion as at 31 December 2019), providing
continued visibility and financial stability of future
revenues.
Six months Six months
Financial Highlights to to
(EUR million) 30 June 2020 30 June 2019
(unaudited) (unaudited)
==================================================== ============== ==============
Revenue 617.3 804.6
EBITDA (i) 437.6 582.9
EBITDA margin - % 70.9% 72.4%
Income from operating activities (pre-exceptional
item) 321.8 418.9
Exceptional item (pre-tax) (ii) (25.6) -
Income from operating activities (post-exceptional
item) 296.2 418.9
Net income (pre-exceptional item) 198.3 273.5
Exceptional item (post-tax) (ii) (25.6) -
Net income (post-exceptional item) 172.7 273.5
Capital expenditure (iii). 68.3 54.2
Cash generated from operating activities 498.5 463.3
==================================================== ============== ==============
(i) EBITDA is earnings before exceptional items, interest
(including other finance costs), taxation, depreciation and
amortisation and joint venture results. Depreciation and
amortisation are adjusted to remove elements of such charges
included in changes to inventories and net costs of nuclear
provisions. EBITDA is reconciled to income from operating
activities on pages 3 and 10.
(ii) Exceptional item comprises the increase in nuclear
provisions for the USA operations as a result of lower discount
rates.
(iii) Capital expenditure includes net cash flows from investing
activities (excluding interest received) and capital accruals
(included in working capital payables).
Boris Schucht, Chief Executive of Urenco Group, commenting on
the half year results, said:
"Urenco's half year results for 2020 reflect a robust financial
and operational performance during a time of significant disruption
globally, due to the COVID-19 pandemic.
Urenco acted quickly to mitigate the impact of the spread of the
COVID-19 virus on our business. Our objective has been to ensure
the safety and wellbeing of our employees, their families and the
local communities, and the continued safe operation of our sites.
We have had a very low infection rate among our employees. We
achieved continuous, smooth operations across all sites, and there
was no interruption to either our supply chain or logistics. We
maintained our 100% record of delivering to our customers on time.
For this, I extend a huge thank you to our employees and partner
organisations.
Urenco's finances remain healthy, despite the pandemic. We
benefit from a strong balance sheet, with more than EUR 790 million
in cash and short term deposits, as well as EUR750 million of
undrawn bank facilities, which can help buffer and protect us from
any potential longer term adverse consequences of the COVID-19
virus. Some of our customers are being impacted by a drop in
electricity consumption, which may lead to a small reduction in
deliveries for Urenco in the coming years. Our results in the past
six months have remained in line with management expectations.
Sustainability is integral to everything Urenco does, in terms
of the longevity of our company, our environmental impact and how
we give back to society. The past six months have seen some very
positive progress commercially, with new enrichment and nuclear
stewardship contracts secured. In relation to environmental impact,
the commissioning of our Tails Management Facility is progressing
well and represents a significant investment in the responsible
management of the by-product of our enrichment services. Our stable
isotopes business has huge value for society, from diagnostics,
therapy and pain relief to supporting the development of quantum
computers. We are increasing its capacity and are looking forward
to officially opening an enhanced facility next year, following
completion of commissioning.
During 2020, we are celebrating the 50th anniversary of our
organisation's founding treaty - The Treaty of Almelo. Our success
is due to the skill and commitment of our employees and the strong
relationships we have with a wide variety of trusted and valued
partners. This has been even more evident during the COVID-19
crisis and we look forward to continued collaboration to help
ensure our industry continues to perform in these turbulent
times."
COVID-19
Urenco has detailed procedures in place to ensure the safety and
wellbeing of our employees, communities and key stakeholders, and
our ability to keep our plants operating.
Dedicated teams have been managing the risk, closely monitoring
local conditions and government advice, and delivering on
comprehensive response plans. International business travel ceased
quickly. Visitor tours of our sites were cancelled and employees
who could work from home were required to do so. Increased hygiene
measures were implemented at all sites. Guidance was issued to
managers and supervisors, and employees were updated daily on what
actions needed to be taken.
We also worked closely with suppliers and business partners to
mitigate the associated risks. Additional stock was put in place
for critical components and we sourced alternative products where
there were shortages of supply.
These measures will remain in place for the time being, with
restrictions being eased gradually in line with Government
guidance. We remain confident about our plans for managing COVID-19
and our resilience is further strengthened by our ability to
provide services for our customers from our sites in mainland
Europe, the UK and the USA.
Financial Results
Revenue for the six months ended 30 June 2020 was EUR617.3
million, a decrease of EUR187.3 million (23.3%) on the EUR804.6
million for the same period last year. SWU revenues were down, in
line with management expectations, by EUR219.4 million, due to
lower volumes, which more than offset the favourable impact from
slightly higher realised hedged SWU prices. Uranium related sales
were down by EUR24.1 million, with both volumes and prices lower
than the same period last year.
Other net movements in revenue showed an increase of EUR56.2
million compared to the same period last year, of which EUR44.5
million relates to payments received associated with the settlement
of claims filed by Urenco relating to the Chapter 11 bankruptcy of
a US customer.
Overall, revenue for 2020 is expected to show that the second
half of the year will account for a greater proportion of the
total, which contrasts slightly with 2019 when sales were more
broadly split across the first and second halves of the year.
EBITDA for the first half of 2020 was EUR437.6 million, a
decrease of EUR145.3 million (24.9%) from the same period last year
(H1 2019: EUR582.9 million), corresponding to an EBITDA margin of
70.9% (H1 2019: 72.4%). The decrease in EBITDA is principally due
to the margin impact from decreased revenue, together with an
increase in the net costs of nuclear provisions (excluding
exceptional item) of EUR18.9 million, despite other operating and
administrative expenses being lower by EUR60.9 million.
EUR million (periods ending 30 June) 2020 2019 % movement
Income from operating activities - pre-exceptional
item 321.8 418.9 (23.2%)
------- ------ -----------
Adjustment for depreciation in inventories,
SWU assets and nuclear provisions (33.4) (6.3)
------- ------ -----------
Add: depreciation and amortisation 150.4 171.4
------- ------ -----------
Adjustment for share of results of joint
venture (1.2) (1.1)
------- ------ -----------
EBITDA 437.6 582.9 (24.9%)
------- ------ -----------
The net costs of nuclear provisions (including exceptional item)
were EUR62.5 million for the six months ended 30 June 2020, an
increase of EUR44.5 million (H1 2019: EUR18.0 million), primarily
as a result of higher net costs for tails provisions.
The net costs for tails provisions (including exceptional item)
in the first half of 2020 were EUR50.8 million higher than those
for the same period last year, with the increase due to a reduction
in certain applicable discount rates and the relative impact of the
reduction in higher assay tails associated with enrichment services
contracts. The impact of the reduction in certain applicable
discount rates, which relates to the US and the Netherlands
businesses, resulted in a charge of EUR32.4 million (H1 2019: nil),
of which the EUR25.6 million associated with the US discount rate
change has been treated as an exceptional item. The Group's policy
on exceptional items requires separate disclosure for certain items
of financial performance, due to their size, nature and incidence,
so as to assist in understanding the underlying financial
performance achieved by the Group. As the Group's assumptions for
the US business discount rate have remained unchanged for many
years, and the impact of the change is material, it has been
treated as an exceptional item due to its size, nature and
incidence.
EUR million (periods ending 30 June) 2020 2019 increase/
(decrease)
Net costs for nuclear provisions in
the period - total 62.5 18.0 44.5
----- ----- ------------
Net costs for tails provisions in
the period - exceptional item 25.6 - 25.6
----- ----- ------------
Net costs for nuclear provisions in
the period - ordinary course 36.9 18.0 18.9
----- ----- ------------
The net costs for decommissioning provisions in the first half
of 2020 increased by EUR2.6 million. The net costs for other
nuclear provisions in the first half of 2019 decreased by EUR8.9
million as a result of optimisation of the operations and changes
to the forecasts for future re-enrichment of low assay feed.
Other operating and administrative expenses in H1 2020 were
lower by EUR60.9 million (H1 2020: EUR142.8 million, H1 2019:
EUR203.7 million). This movement reflects a lower average unit cost
of sales, as a result of the sales mix realised in the period and
the continued management of costs across our business. In addition,
Other expenses are also net of the release of a provision of
EUR17.4m, initially recognised in 2018, associated with the
potential clawback of revenues by a US customer as a result of
Chapter 11 bankruptcy proceedings which have now been
completed.
Depreciation and amortisation for the six months ended 30 June
2020 was EUR150.4 million, compared to EUR171.4 million for the
half year 2019, primarily reflecting lower depreciation on the US
operations as a result of the impairment taken at the end of
2019.
Income from operating activities post-exceptional item was
EUR296.2 million (2019: EUR418.9 million) and Income from operating
activities pre-exceptional item was EUR321.8 million (2019:
EUR418.9 million).
Net finance costs for the six months ended 30 June 2020 were
EUR44.0 million, compared to EUR51.4 million for the same period
last year. The net finance costs on borrowings (including the
impact of interest rate/cross currency interest rate swaps) were
lower at EUR34.6 million (H1 2019: EUR45.0 million), due to the
premium of EUR9.9 million paid in January 2019 on the early
redemption of certain bonds due in February 2021, with the
underlying costs reflecting the lower levels of net debt in the
first half of 2020.
In the first half of 2020, the tax expense was EUR79.5 million
(an effective tax rate (ETR) of 31.5%), a decrease of EUR14.5
million over the tax expense of EUR94.0 million for H1 2019 (ETR:
25.6%). The decrease in tax expense arose primarily as a result of
the decrease in accounting income before tax (including the impact
of the exceptional item which resulted in a net tax credit of
EURnil million), together with a deferred tax valuation allowance
release, partially offset by changes in the amount of foreign
exchange financing gains and losses that are excluded from tax
under the UK Disregard Regulations and a non-recurring tax expense
for revaluing the Group's UK deferred tax liability, following an
increase in the UK tax rate to 19%.
In the first six months of 2020, net income post-exceptional
item was EUR172.7 million, a decrease of EUR100.8 million (36.9%)
compared to net income of EUR273.5 million in the same period of
2019. The decrease in net income post-exceptional item reflects the
impact of lower EBITDA, despite the favourable impacts from lower
depreciation, net finance costs and tax expenses. Net income
pre-exceptional items was EUR198.3 million (27.5% decrease on H1
2019).
The net income margin for H1 2020 was 28.0% post-exceptional
item and 32.1% pre-exceptional item (H1 2019: 34.0%).
EUR million (periods ending 30 June) 2020 2019 increase/
(decrease)
Net income - pre-exceptional item 198.3 273.5 (75.2)
------- ------ ------------
Exceptional item - change in US discount
rate (25.6) - (25.6)
------- ------ ------------
Net income - post-exceptional item 172.7 273.5 (100.8)
------- ------ ------------
Operating cash flow before movements in working capital was
EUR465.6 million (H1 2019: EUR593.1 million) and cash generated
from operating activities was EUR498.5 million (H1 2019:
EUR463.3million). The higher cash flows from operating activities
primarily reflect the impact of lower revenues being more than
offset by a favourable movement in working capital compared to H1
2019.
Tax paid in the period was EUR93.5 million (H1 2019: EUR112.2
million), with the decrease principally driven by lower tax
payments in the UK and the Netherlands.
Accordingly, net cash flow from operating activities after tax
was EUR405.5 million, compared to EUR351.1 million in H1 2019.
In the first six months of 2020, the Group invested a total of
EUR68.3 million (H1 2019: EUR54.2 million), of which the investment
in the Tails Management Facility (TMF) represented EUR17.3 million
(H1 2019: EUR20.6 million). The level of investment spend in H1
2020 was higher than H1 2019 but lower than anticipated by
management for both core enrichment assets and the TMF, primarily
as a result of COVID-19 and the corresponding restrictions on our
ability to safely carry out work.
Net cash outflow from financing activities in H1 2020 was
EUR257.6 million, compared to EUR753.2 million in H1 2019. The
figure for 2020 includes the termination of EUR95.1 million of
short term deposits. The figure for 2019 includes the placement of
EUR175.0 million in short term deposits (the majority of which
matured in March 2020) and the repurchase of EUR215.6 million of
our EUR750.0 million bond due in February 2021 for a total amount,
including accrued interest, of EUR230.5 million. In March 2020,
EUR300.0 million in dividends for the year ended 31 December 2019
were paid to shareholders (2019: EUR300.0 million).
As at 30 June 2020, the Group held cash and cash equivalents of
EUR422.6 million (31 December 2019: EUR323.2 million) and short
term deposits of EUR369.0 million (31 December 2019: EUR464.1
million). Net debt was EUR923.6 million (31 December 2019: EUR928.1
million), a decrease of EUR4.5 million from the year-end, as the
net cash inflow from operating activities was higher than the
overall movement in cash outflows relating to capital expenditure,
net interest paid, the impact of the movement in lease liabilities
and the payment of the final dividend for 2019.
Total provisions as at 30 June 2020 were EUR 2,224.8 million (31
December 2019: EUR2,187.0 million), of which EUR 6.4 million (31
December 2019: EUR9.2 million) was included in current liabilities.
In H1 2020, additional provisions and the unwinding of discounts
were EUR 247.9 million, while utilisation and release of provisions
(including exchange differences) were EUR 210.1 million. Nuclear
liabilities and the associated provisions, together with underlying
macro economic assumptions and the required funding capability, are
kept under constant review by Urenco.
Events after the Balance Sheet Date
The Group repurchased and cancelled EUR95.0 million of the
August 2022 Eurobonds for a price of 103.35% (EUR98.2 million).
This transaction was completed on 6 July 2020 for a total amount of
EUR100.1 million, which included EUR1.9 million of accrued interest
on these Eurobonds. A nominal amount of EUR405.0 million remains
outstanding. As the tender offer for the Eurobonds was not
finalised until after the period end, management has concluded that
this constitutes a non-adjusting post balance sheet event and,
therefore, it has not been recognised in the Group's interim
financial statements for the period ended 30 June 2020.
Outlook and Order Book
The COVID-19 crisis has impacted power markets and power demand
globally, although it is increasingly apparent that nuclear output
has remained a reliable source of energy during this time. Some
markets are more impacted than others, with Europe seeing the
largest fall in nuclear output compared to last year (between
10-15% lower in Q1 and Q2). While there may be a corresponding
small reduction in deliveries in the coming years, many utilities
are using the decreased demand as an opportunity to advance
maintenance programmes.
During the first six months of 2020, SWU prices remain at
similar levels to last year and uranium prices have increased to
above $105/kg UF6, primarily as a result of the temporary closure
of mines across the world in response to COVID-19. The historic
levels of SWU pricing continue to be reflected in the value of our
contract order book, which extends to the 2030s with a value as at
30 June 2020 of EUR 10.2 billion, based on EUR/$ of 1: 1.12 (31
December 2019: approximately EUR10.6 billion based on EUR/$ of 1:
1.12). However, the current and recent levels of long-term forecast
market prices for SWU are much lower than the historic levels of
our order book and those previously anticipated, and this was the
key driver which resulted in impairment charges being incurred on
our US operations in both 2016 and 2019, totalling approximately
EUR1.3 billion.
Future opportunities are created by the radical decarbonisation
required to mitigate climate change and meet the commitments made
in relation to the Paris Agreement. It is well established that in
order to meet future emission targets, a mix of renewable and
nuclear power is needed. It is vital for nuclear to complement
renewables in the future energy mix, as it is the only proven
technology providing continuous low carbon power. The nuclear
industry requires a cost effective and diverse supply of uranium
enrichment services as an integral part of the nuclear fuel cycle.
Urenco has a key role in providing this as a leading nuclear
services technology company operating safely and reliably for 50
years.
We also continue to monitor the various political uncertainties
that could impact our business.
We are prepared for the UK's full withdrawal from the European
Union and EURATOM treaty, which is due to take place at the end of
2020.
In the United States, Urenco welcomed the US Department of
Energy's publication of the Nuclear Fuel Working Group's report in
April. Its recommendations included continuing to control the level
of enriched uranium Russia can supply into the US. We also welcomed
the recommendation on funding research and development of next
generation fuels - a future market which Urenco is well placed to
serve.
--S --
Contact
Jayne Hallett
Director of Corporate Communications
+44 1753 660 660
Michael Zdanowski
Madano +44 20 7593 4000
michael.zdanowski@madano.com
About Urenco Group
Urenco is an international supplier of enrichment services and
fuel cycle products with sustainability at the core of its
business. Operating in a pivotal area of the nuclear fuel supply
chain for 50 years, Urenco facilitates zero carbon electricity
generation for consumers around the world.
With its head office near London, UK, Urenco's global presence
ensures diversity and security of supply for customers through
enrichment facilities in Germany, the Netherlands, the UK and the
USA. Using centrifuge technology designed and developed by Urenco,
and through the expertise of our people, the Urenco Group provides
safe, cost effective and reliable services, operating within a
framework of high environmental, social and governance standards,
complementing international safeguards.
Urenco is committed to continued investment in the responsible
management of nuclear materials; innovation activities with clear
sustainability benefits, such as nuclear medicine, industrial
efficiency and research; and nurturing the next generation of
scientists and engineers.
For more information, please visit www.urenco.com
Definitions
Capital Expenditure - Reflects investment in property, plant
and equipment, plus the prepayments in respect of fixed asset
and intangible asset purchases for the period.
EBITDA - Earnings before exceptional items, interest (including
other finance costs), taxation, depreciation and amortisation
and joint venture results (or income from operating activities
plus depreciation and amortisation, plus joint venture results).
Depreciation and amortisation are adjusted to remove elements
of such charges already included in changes to inventories and
SWU assets and net costs of nuclear provisions.
Net Costs of Nuclear Provisions - The net costs charged to
the income statement associated with the creation and release
of provisions for tails, decommissioning and re-enrichment of
low assay feed.
Net Debt - Loans and borrowings (current and non-current),
plus obligations under leases, less cash and cash equivalents
and short term deposits.
Net Finance Costs - Finance costs less finance income, net of
capitalised borrowing costs and including costs/income of non-designated
hedges and charges/reversals of expected credit losses on financial
assets.
Net Income - Income for the year attributable to equity holders
of the parent.
Order Book - Contracted and agreed business estimated on the
basis of "requirements" and "fixed commitment" contracts.
Other Operating and Administrative Expenses - Expenses comprising
Changes to inventories, Raw materials and consumables, Employee
costs, Restructuring charges, and Other expenses, but excluding
the Net costs of nuclear provisions and any associated elements
of depreciation.
Revenue - Revenue from sale of goods and services and net fair
value gains/losses on commodity contracts.
Separative Work Unit (SWU) - The standard measure of the effort
required to increase the concentration of the fissionable U(235)
isotope.
Tails (Depleted UF(6) ) - Uranium hexafluoride that contains
a lower concentration than the natural concentration (0.711%)
of U(235) isotope.
Uranium Related Sales - Sales of uranium in the form of UF(6)
, U(3) O(8) or the UF(6) component of EUP.
Disclaimer
This press release is not intended to be read as the Group's
statutory accounts as defined in section 435 of the Companies Act
2006. Information contained in this release is based on the 2019
Consolidated Financial Statements of the Urenco Group, which were
authorised for issue by the Board of Directors on 11 March 2020.
The auditor's report on the 2019 Consolidated Financial Statements
of the Group was unqualified and did not contain a statement under
section 498 of the Companies Act 2006. The Group's 2018 statutory
accounts have been delivered to the registrar of companies.
This release and the information contained within it does not
constitute an offering of securities or otherwise constitute an
invitation or inducement to underwrite, subscribe for or otherwise
acquire securities in any company within the Urenco Group.
Any forward-looking statements contained within this release are
inherently subject to risks and uncertainties. Actual results may
differ materially from those expressed or implied by such
forward-looking statements and, accordingly, any person reviewing
this release should not rely on such forward-looking
statements.
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
Six months ended Year ended
30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
EURm EURm EURm
============================================ =============== ============== =============
Revenue from sales of goods and services 617.3 804.6 1,804.5
--------------- -------------- -------------
Changes to inventories of finished
goods and work in progress and SWU
assets 89.9 30.2 (5.5)
Raw costs of materials and consumables
used (6.4) (5.1) (13.0)
Net costs of nuclear provisions(i) (62.5) (18.0) (297.7)
Employee costs (82.9) (89.4) (168.4)
Depreciation and amortisation (150.4) (171.4) (356.2)
Impairment of USA Operations - exceptional
item - - (500.0)
Restructuring provision release - 2.9 2.9
Other expenses (110.0) (136.0) (264.8)
Share of results of joint venture 1.2 1.1 5.4
--------------- -------------- -------------
Income from operating activities 296.2 418.9 207.2
Finance income 75.7 39.9 74.3
Finance costs (119.7) (91.3) (181.4)
Income before tax 252.2 367.5 100.1
Income tax expense (79.5) (94.0) (92.5)
--------------- -------------- -------------
Net income for the period / year
attributable to the owners of the
Company 172.7 273.5 7.6
Earnings per share: EUR EUR EUR
Basic earnings per share 1.0 1.6 0.1
(i) Net costs of nuclear provisions includes EUR25.6 million and
EUR143.0 million for the periods ended 30 June 2020 and 31 December
2019 respectively classified as exceptional items.
RECONCILIATION OF INCOME FROM OPERATING ACTIVITIES TO EBITDA
(ii)
Six months ended Year ended
30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
EURm EURm EURm
======================================== =========== =========== =============
Income from operating activities -
post-exceptional items 296.2 418.9 207.2
Exceptional items 25.6 - 643.0
Income from operating activities -
pre-exceptional items 321.8 418.9 850.2
Depreciation and amortisation 150.4 171.4 356.2
Depreciation in inventories and SWU
assets (33.2) (12.2) (1.5)
Depreciation expensed within net costs
of nuclear provisions (0.2) 5.9 20.1
Joint venture results (1.2) (1.1) (5.4)
----------- ----------- -------------
EBITDA(ii) 437.6 582.9 1,219.6
----------- ----------- -------------
(ii) EBITDA is defined as earnings before exceptional items,
interest (including other finance costs), taxation, depreciation
and amortisation and joint venture results. Depreciation and
amortisation are adjusted to remove elements of such charges
included in changes to inventories and net costs of nuclear
provisions.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
Six months ended Year ended 31 December
30 June
2020 2019 2019
Unaudited Unaudited Audited
Restated(i) Restated(i)
EURm EURm EURm
========================================================== ============================ ============ ============
Net income 172.7 273.5 7.6
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to the income
statement
Cash flow hedges - transfers to revenue 22.1 8.4 40.2
Cash flow hedges - mark to market losses (65.8) (45.9) (23.6)
Movements on cost of hedging reserve (0.5) 3.2 (15.6)
Deferred tax income/(expense) on financial instruments(i) 16.8 4.2 (2.9)
Current tax (expense)/income on financial instruments(i) (8.4) 4.3 5.6
Exchange differences on hedge reserves 20.8 1.6 (12.2)
---------------------------- ------------ ------------
Total movements to hedging reserves(i) (15.0) (24.2) (8.5)
Exchange differences on foreign currency translation of
foreign operations (6.4) 2.3 48.3
Net investment hedge - mark to market (losses)/gains (128.7) (18.2) 39.7
Deferred tax income on financial instruments(i) 4.6 0.7 2.6
Current tax income/(expense) on financial instruments(i) 12.0 1.5 (6.2)
Share of joint venture exchange difference on foreign
currency translation of foreign operations (0.2) - 0.1
---------------------------- ------------ ------------
Total movements to foreign currency translation
reserve(i) (118.7) (13.7) 84.5
Items that will not be reclassified subsequently to the
income statement
Actuarial losses on defined benefit pension schemes (8.1) (8.1) (16.9)
Deferred tax income on actuarial losses 0.5 1.6 1.8
Current tax income on actuarial losses 1.1 - 1.3
Share of joint venture actuarial losses on defined
benefit pension schemes (0.3) (1.2) (3.8)
Exchange differences (1.5) 3.0 -
Total movements to retained earnings (8.3) (4.7) (17.6)
Other comprehensive (loss)/income (142.0) (42.6) 58.4
Total comprehensive income relating to the period/year
attributable to the owners of the Company 30.7 230.9 66.0
============================ ============ ============
(i) To appropriately present the deferred tax and current tax on
the accumulation of gains/losses of hedging instruments in net
investment hedges in the foreign currency translation reserve under
IFRS 9 Financial Instruments, deferred tax and current tax of
EUR33.6 million as at 31 December 2019 and of EUR48.1 million as at
30 June 2019 have been removed from the hedging reserve and
recognised in the foreign currency translation reserve.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
30 June 2020 31 December 2019 30 June 2019
Unaudited Audited Unaudited
Restated(i) Restated(i)
EURm EURm EURm
ASSETS
Non-current assets
Property, plant and equipment 4,407.8 4,570.8 4,922.6
Investment property 6.0 6.5 6.0
Intangible assets 20.8 24.5 31.3
Investments including joint venture 17.0 21.2 18.9
Restricted cash 1.6 3.5 5.2
Derivative financial instruments 76.2 145.3 166.1
Deferred tax assets 176.0 183.1 133.9
Contract assets - 5.2 -
4,705.4 4,960.1 5,284.0
------------- ----------------- -------------
Current assets
Inventories 147.1 128.8 139.3
SWU assets 365.5 289.5 284.4
Contract assets 12.6 11.1 -
Trade and other receivables 121.4 263.2 215.6
Derivative financial instruments 107.1 7.1 3.6
Income tax recoverable 124.7 89.0 108.5
Short term deposits 369.0 464.1 175.0
Cash and cash equivalents 422.6 323.2 109.5
1,670.0 1,576.0 1,035.9
------------- ----------------- -------------
TOTAL ASSETS 6,375.4 6,536.1 6,319.9
============= ================= =============
EQUITY AND LIABILITIES
Equity attributable to owners of the Company
Share capital 237.3 237.3 237.3
Additional paid in capital 16.3 16.3 16.3
Retained earnings 1,174.4 1,310.0 1,588.8
Hedging reserves(i) (29.9) (14.9) (30.6)
Foreign currency translation reserve(i) 218.4 337.1 238.9
------------- ----------------- -------------
Total equity 1,616.5 1,885.8 2,050.7
------------- ----------------- -------------
Non-current liabilities
Interest bearing loans and borrowings 1,161.1 1,693.4 1,691.6
Trade and other payables 37.9 - -
Lease liabilities 18.2 19.6 19.2
Provisions 2,218.4 2,177.8 1,804.4
Contract liabilities 52.3 53.5 62.0
Derivative financial instruments 151.1 142.7 174.5
Deferred tax liabilities 89.4 99.4 96.5
Retirement benefit obligations 65.5 65.2 61.6
3,793.9 4,251.6 3,909.8
------------- ----------------- -------------
Current liabilities
Interest bearing loans and borrowings 534.1 - -
Trade and other payables 209.1 250.6 245.7
Lease liabilities 1.8 2.4 2.4
Provisions 6.4 9.2 6.0
Contract liabilities 44.6 59.6 27.0
Derivative financial instruments 130.5 36.1 44.3
Income tax payable 38.5 40.8 34.0
965.0 398.7 359.4
------------- ----------------- -------------
Total liabilities 4,758.9 4,650.3 4,269.2
------------- ----------------- -------------
TOTAL EQUITY AND LIABILITIES 6,375.4 6,536.1 6,319.9
============= ================= =============
(i) Amounts in the hedging reserve in respect of current and
deferred tax on net investment hedges of EUR33.6 million as at 31
December 2019 and of EUR48.1 million as at 30 June 2019 have been
removed from the hedging reserve and recognised in the foreign
currency translation reserve. Total equity as at 31 December 2019
and 30 June 2019 remains unchanged.
Registered Number 01022786
The financial statements were approved by the Directors and
authorised for issue on 5 August 2020.
They were signed on its behalf by:
Boris Schucht Ralf ter Haar
Chief Executive Officer Chief Financial Officer
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Foreign
Additional currency Attributable
paid in Retained Hedging translation to the owners
Share capital capital earnings reserves reserve of the Company
Restated(i) Restated(i)
EURm EURm EURm EURm EURm EURm
================ =============== =============== =============== =============== =============== ===============
As at 31
December 2019
(Audited) 237.3 16.3 1,310.0 18.7 303.5 1,885.8
Restatement(i) - - - (33.6) 33.6 -
--------------- --------------- --------------- --------------- --------------- ---------------
Revised at 1
January 2020 237.3 16.3 1,310.0 (14.9) 337.1 1,885.8
Income for the
period - - 172.7 - - 172.7
Other
comprehensive
income - - (8.3) (15.0) (118.7) (142.0)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
comprehensive
income - - 164.4 (15.0) (118.7) 30.7
Equity dividend
paid - - (300.0) - - (300.0)
---------------- --------------- --------------- --------------- --------------- --------------- ---------------
As at 30 June
2020
(Unaudited) 237.3 16.3 1,174.4 (29.9) 218.4 1,616.5
================ =============== =============== =============== =============== =============== ===============
Foreign
Additional currency Attributable
paid in Retained Hedging translation to the owners
Share capital capital earnings reserves reserve of the Company
Restated(i) Restated(i)
EURm EURm EURm EURm EURm EURm
================ =============== =============== =============== =============== =============== ===============
As at 31
December 2018
(Audited) 237.3 16.3 1,620.0 38.5 207.7 2,119.8
Restatement(i) - - - (44.9) 44.9 -
--------------- --------------- --------------- --------------- --------------- ---------------
Revised as at 1
January 2019 237.3 16.3 1,620.0 (6.4) 252.6 2,119.8
Income for the
period - - 273.5 - - 273.5
Other
comprehensive
income(i) - - (4.7) (24.2) (13.7) (42.6)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
comprehensive
income - - 268.8 (24.2) (13.7) 230.9
Equity dividend
paid - - (300.0) - - (300.0)
---------------- --------------- --------------- --------------- --------------- --------------- ---------------
As at 30 June
2019
(Unaudited) 237.3 16.3 1,588.8 (30.6) 238.9 2,050.7
================ =============== =============== =============== =============== =============== ===============
(i) The hedging reserve and foreign currency translation reserve
as at 1 January 2019 and 1 January 2020 have been restated to
reclassify current and deferred tax associated with gains/losses on
hedging instruments in net investment hedges under IFRS 9. Other
comprehensive income for the six months ended 30 June 2019 has also
been restated. The restatements have had no impact on total equity
as previously reported.
Foreign currency translation reserve
The foreign currency translation reserve is used to record
exchange differences arising from the translation of the financial
statements of foreign subsidiaries and the parent entity into the
euro presentational currency and the fair value movements on net
investment hedges.
INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2020 2019 2019
Unaudited Unaudited Audited
Re-presented(i)
EURm EURm EURm
Income before tax 252.2 367.5 100.1
Adjustments to reconcile Group income
before tax to net cash inflows from
operating activities:
Share of joint venture results (1.2) (1.1) (5.4)
Depreciation and amortisation 150.4 171.4 356.2
Impairment of US operations - exceptional
item(i) - - 500.0
Finance income (75.7) (39.9) (74.3)
Finance cost 119.7 91.3 181.4
Loss on write off of property, plant
and equipment - 0.2 1.2
Increase in provisions(i) 20.2 3.7 229.1
Operating cash flows before movements
in working capital 465.6 593.1 1,288.3
(Increase)/decrease in inventories (27.9) 1.1 (6.4)
Increase in SWU assets (73.4) (41.4) (63.3)
Decrease/(increase) in receivables
and other debtors 133.6 1.8 (39.9)
Increase/(decrease) in payables and
other creditors 0.6 (91.3) (84.4)
----------- ----------- ----------------
Cash generated from operating activities 498.5 463.3 1,094.3
Income taxes paid (93.5) (112.2) (141.5)
----------- ----------- ----------------
Net cash flow from operating activities 405.0 351.1 952.8
----------- ----------- ----------------
Investing activities
Interest received 27.6 29.6 47.9
Dividends received from joint venture 5.0 - -
Purchases of property, plant and
equipment (68.3) (54.2) (142.1)
Purchase of intangible assets - - (3.1)
Increase in investment - - (0.1)
----------- ----------- ----------------
Net cash flow used in investing activities (35.7) (24.6) (97.4)
----------- ----------- ----------------
Financing activities
Interest paid (51.4) (66.0) (124.9)
Proceeds in respect of settlement
of debt hedges - 4.2 4.6
Dividends paid to equity holders (300.0) (300.0) (300.0)
Termination/(placement) of short
term deposits 95.1 (175.0) (464.1)
Repayment of borrowings - (215.6) (215.6)
Repayment of lease liabilities (1.3) (0.8) (1.8)
Net cash flow from financing activities (257.6) (753.2) (1,101.8)
----------- ----------- ----------------
Net increase/(decrease) in cash and
cash equivalents 111.7 (426.7) (246.4)
Cash and cash equivalents at beginning
of period/year 323.2 531.2 531.2
Effect of foreign exchange rate changes (12.3) 5.0 38.4
----------- ----------- ----------------
Cash and cash equivalents at end
of the period/year 422.6 109.5 323.2
=========== =========== ================
(i) The Group has re-presented the cash flow statement for the
year ended 31 December 2019 by splitting out the amount for
Exceptional items of EUR643.0 million on two lines. An amount of
EUR500.0 million has been presented as Impairment of USA operations
- exceptional item and an amount of EUR143.0 million has been
presented within Increase in provisions.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR DZGGRRKKGGZM
(END) Dow Jones Newswires
August 06, 2020 02:00 ET (06:00 GMT)
Urenco 24 (LSE:44ZP)
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