Areva, a French firm, has suspended its financial targets for 2015-2016 as there are delays in its nuclear project in Finland, including the slow pick up of Japan’s reactors, plus a bland nuclear market.
On Tuesday, Areva shares jumped to 3.2%, but dropped after its announcement before trading was suspended.
The company had slowed down its provisions for new reactors, including its contracts for exporting nuclear fuel recycling as well as its services for current reactors.
The company it has been working on enhancing its performance plans so as to adapt towards the market conditions that remain unfavorable.
It also stated that it has been reviewing the strategic outlook of the company, including its midterm funding plans, presenting a new fiscal forecast for the years 2015 until 2017, before announcing the 2014 results.
The company reported a positive 2014 pretax free cash flow in February, as well as a 2015-2016 significant increase and positive free operating cash flow before tax. Areva has also forecasted an organic revenue increase of 4% to 5% each year for 2015-2016, and targeted between 14% and 15% EBITDA to 2016 revenue ratio.
The company also said that the annual levels of free operating cash flows might be affected by the postponement of some customer payments up until 2015, the revenue and EBITDA 2014 outlook was not affected.
In October, Areva announced its capital spending reductions and sales of new assets, right after the Standard & Poor’s announcement to consider the cutting of the company’s debt rating into a non-investment rating.
On Tuesday, Challenges magazine stated, the government has plans on injecting capital to Areva, amounting to 2B euros through the sales of some state-owned companies within the nuclear industry.