CA - Cameco foreign exchange charge weighs Q2 results
2023-08-02 08:33:55 ET
Cameco ( NYSE: CCJ ) -1.1% pre-market Wednesday after reporting a surprise Q2 adjusted loss , which the company blamed on unrealized losses due to higher than normal U.S. dollar cash balances, which are being held for the pending acquisition of nuclear power plant equipment maker Westinghouse Electric.
Results also were weighed by a stronger Canadian dollar, which led to a C$44M foreign exchange loss.
Q2 net earnings fell to C$14M (~US$10.5M), or C$0.03/share, from C$84M, or C$0.21/share, in the year-ago quarter; on an adjusted basis, Cameco ( CCJ ) recorded a C$0.01/share loss, compared with a year-earlier profit of C$0.18/share.
Q2 uranium production jumped 57% Y/Y to 4.4M lbs but sales volume fell 28% Y/Y to 5.5M lbs; the company's average realized price rose 7% to $49.41/lb.
Q2 revenues fell 14% Y/Y to $482M, but Cameco ( CCJ ) raised its full-year guidance for revenues of C$2.4B-C$2.5B from its previous outlook for C$2.2B-C$2.4B.
Separately, the UK's Competition and Markets Authority said Wednesday it is investigating Cameco ( CCJ ) and Brookfield Renewable Partners' $7.9B deal to acquire Westinghouse.
According to the deal announced in October , Cameco ( CCJ ) will own 49% of Westinghouse, while Brookfield Renewable and its institutional partners will own the rest.
More on Cameco:
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- Analysis: Cameco: Digging For Precious Uranium Ore
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Cameco foreign exchange charge weighs Q2 results