The nuclear group will announce after the close of trading suspension of its financial outlook.
The situation worsens in Areva. According to our information, the nuclear group will communicate this evening after the close of trading to share new information about its financial situation. Technically, the group will suspend its financial outlook and announce that he started work to revise these goals. For 2014, the group expected a drop in turnover of 10% and a cash flow free operating at equilibrium, depending on the year-end receipts. For 2015 and 2016, Areva was counting on "organic growth in turnover of around 4 to 5% per year on average" and "free operating cash flow before taxes of close to balance in 2015 and clearly positive in 2016, "the group said.
The nuclear group is under severe financial pressure. In early October, the Supervisory Board has already announced a reduction in investment of € 200 million over the period 2015 to 2016, sales of assets for a minimum amount of EUR 450 million by the end of 2016 and preparation, "as soon as possible," an issue of hybrid securities, to avert the threat of a downgrade of its credit rating by Standard & Poor's. But in early November, the group could not place this hybrid issue, citing poor market conditions. This issue was, according to our information, a few hundred million. Agency credit rating indicated in stride but it retained its rating reiterated that the lack of building equity in the short term or support of the state could lead to the fall of Areva rating owned 87% by the public sector a notch. The group now has a BBB- rating, but the S & P together with a negative outlook last month.
The magazine "Challenges" stated this morning that the group would announce "in the coming days," a "significant profit warning", with a net loss in fiscal 2014 of EUR 1 billion. In the first half, the group has already lost 694 million euros and has already revised down its business objectives, to EBITDA and free cash flow. According to "Challenges", two measures are also under consideration by the government, "the state could inject 2 billion euros in Areva, through proceeds from the sale of assets in other companies of the nuclear industry. " Moreover, "the creation of a hive society is envisaged to house and outsource the ultra-making activities at the same time unpredictable."
These new ads on the situation Areva came as the group is full overhaul of its governance, and should happen in the next month a business status to management board and supervisory board of a company in administration with a separation of the roles of chairman and CEO. The prime minister said last week in Pierre Blayau, current Chairman of the Supervisory Board appointed by François Hollande barely there eighteen months, he did not become chairman. The position should accrue to the former head of PSA, Philippe Varin, said Minister of Economy.