Workflow
Centrus Reports Second Quarter 2024 Results
LEUCentrus Energy (LEU) Prnewswire·2024-08-06 20:30

Financial Performance - The company reported a net income of 30.6millionforQ22024,comparedto30.6 million for Q2 2024, compared to 12.7 million in Q2 2023, reflecting a significant increase in profitability [1][22] - Total revenue for Q2 2024 was 189.0million,upfrom189.0 million, up from 98.4 million in Q2 2023, marking an increase of 90.6million[3][21]−Grossprofitforthecompanyincreasedto90.6 million [3][21] - Gross profit for the company increased to 36.5 million in Q2 2024 from 28.0millioninQ22023,drivenbyhighersalesvolumeandfavorablecontractpricing[8][21]SegmentPerformance−RevenuefromtheLEUsegmentwas28.0 million in Q2 2023, driven by higher sales volume and favorable contract pricing [8][21] Segment Performance - Revenue from the LEU segment was 169.6 million in Q2 2024, up from 87.6millioninQ22023,anincreaseof87.6 million in Q2 2023, an increase of 82.0 million [4] - The Technical Solutions segment generated 19.4millioninrevenueforQ22024,comparedto19.4 million in revenue for Q2 2024, compared to 10.8 million in Q2 2023, reflecting an increase of 8.6million[5]CostStructure−CostofsalesfortheLEUsegmentroseto8.6 million [5] Cost Structure - Cost of sales for the LEU segment rose to 136.6 million in Q2 2024 from 60.8millioninQ22023,primarilyduetoincreasedsalesvolumeandhigheraverageunitcosts[6]−TheTechnicalSolutionssegment′scostofsalesincreasedto60.8 million in Q2 2023, primarily due to increased sales volume and higher average unit costs [6] - The Technical Solutions segment's cost of sales increased to 15.9 million in Q2 2024 from 9.6millioninQ22023,attributedtothetransitionfromPhase1toPhase2oftheHALEUOperationContract[7]OperationalDevelopments−ThecompanysecuredawaiverfromtheU.S.DepartmentofEnergyundertheProhibitingRussianImportsAct,allowingittocoverU.S.customerdeliveriesunderaRussiansupplycontractfor2024and2025[1][12]−CentrusbeganenrichmentoperationsatitsAmericanCentrifugePlantinOctober2023andcompletedPhase1oftheHALEUOperationContractaheadofschedule[9]BacklogandFutureOpportunities−Thecompany′sbacklogstoodat9.6 million in Q2 2023, attributed to the transition from Phase 1 to Phase 2 of the HALEU Operation Contract [7] Operational Developments - The company secured a waiver from the U.S. Department of Energy under the Prohibiting Russian Imports Act, allowing it to cover U.S. customer deliveries under a Russian supply contract for 2024 and 2025 [1][12] - Centrus began enrichment operations at its American Centrifuge Plant in October 2023 and completed Phase 1 of the HALEU Operation Contract ahead of schedule [9] Backlog and Future Opportunities - The company's backlog stood at 2.7 billion as of June 30, 2024, with the LEU segment backlog approximately 1.7billionandtheTechnicalSolutionssegmentbacklogaround1.7 billion and the Technical Solutions segment backlog around 1.0 billion [15] - The U.S. Department of Energy has issued RFPs for domestic nuclear fuel production, with over 3.4billioninappropriations,presentingasignificantopportunityforthecompany[2][11]PensionandFinancialPosition−Thecompanyannuitized3.4 billion in appropriations, presenting a significant opportunity for the company [2][11] Pension and Financial Position - The company annuitized 234 million of pension plan obligations, resulting in a 16.6millionsettlementgainanda7916.6 million settlement gain and a 79% reduction in pension liabilities [13][14] - As of June 30, 2024, the consolidated cash balance was 227.0 million, reflecting a strong liquidity position [1][26]