LEU - Centrus on the rise as Q4 earnings beat expectations
- Centrus Energy ( NYSE: LEU ) is trading around +13% on Wednesday after it posted better-than-expected Q4 earnings and revenue.
- Revenue rose around 42% Y/Y to $126.2M, with low-enriched uranium segment revenue of $112.2M. Net profit was $21.3M for the quarter, down from $116.2M a year ago.
- For the full year, net income was $52.2M, down from $175M. The company reported $21.3M in one-time loss for the cost share associated with the US Department of Energy HALEU Operation Contract Award.
- CEO Daniel Poneman said: "We are pleased with how strongly we finished 2022. Our LEU segment generated $67 million in gross profit in the fourth quarter. In Technical Solutions we won the DOE contract to operate a HALEU demonstration cascade through an open, competitive bidding process. We are now on pace to begin producing HALEU by the end of this year. This will be the first new U.S.-owned, U.S.-technology enrichment plant to begin production in 70 years."
- "Our goal is to scale up production in the Piketon, Ohio, facility to meet the full range of America's commercial and national security requirements for enriched uranium, including HALEU for advanced reactors and LEU for the existing reactor fleet."
- Operating profit was $59.7M for the full year, and total revenue was $293.8M, largely in line with 2021 levels. Revenue from the low-enriched uranium segment was $235.6M, up from $186.1M in 2021. Uranium revenue was driven by higher average prices billed to customers, even as sales volumes decreased.
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Centrus on the rise as Q4 earnings beat expectations