PDT Staff Writer
USEC Inc. Monday provided an update on the American Centrifuge project and the ongoing cooperative research, development and demonstration (RD&D) program. According to the update, USEC is successfully executing the RD&D program with the Department of Energy (DOE) to reduce the technical risks and improve the future prospects of commercial deployment of the American Centrifuge technology.
During the RD&D program, USEC has built plant control systems, assembled AC100 centrifuge machines and conditioned the machines with uranium gas in their existing lead cascade. USEC officials said the RD&D program continues to operate on schedule and on budget. The update says the company has taken a non-cash charge of approximately $1.1 billion for previously capitalized costs related to the American Centrifuge Project during the period of 2007 through the 2011.
“We’ve seen solid performance from our team working on the RD&D program and the program remains on budget and on schedule,” John K. Welch, USEC chief executive officer and president, said. “We are pleased to see continued broad-based, bipartisan support for the American Centrifuge Project due to its importance in meeting national and energy security goals, and the opportunity to create more jobs.”
Meanwhile, USEC also reported their financial results for the fourth quarter and the entire year for 2012. USEC’s core business remained profitable in 2012. They reported revenue of $1.9 billion and a gross profit of $138 million in 2012, and generated $143 million in cash flow from operations. USEC reported positive cash flow from operations for the past three years. The company says it expects revenue from its LEU segment in 2013 of $1.4 billion.
However, as part of their earnings announcement, they reported a $1.1 billion non-cash charge related to centrifuge costs that were previously capitalized, which ultimately resulted in a loss for the year. But the report is quick to add they have sufficient liquidity and cash to meet their operating needs, and the loss has no effect on any current USEC operations, including the American Centrifuge RD&D program and its equipment or future investment in the American Centrifuge plant.
All of the equipment and personnel required to successfully complete the RD&D program and to position ACP for commercialization remain in place, according to the financial statement.
Frank Lewis may be reached at 740-353-3101, ext. 252, or at firstname.lastname@example.org.