BETHESDA, Md.--(BUSINESS WIRE)--Centrus Energy Corp. (NYSE American: LEU) announced today that it has secured new nuclear fuel sales contracts and commitments with utility customers over the past six months with an estimated value of approximately $85 million to $110 million, depending on quantities elected by customers, with deliveries from 2018 through 2030.
“The past several months have been productive for our sales team in winning new business and broadening our customer base,” said Centrus President and CEO Daniel B. Poneman. “We are encouraged not only by these new sales, but also by the fact that the published price indicators for the spot enrichment market have risen in each of the last two months, which are the first such increases since 2010.”
The sales results follow Centrus’ announcement as part of its 10-Q filing for the third quarter of 2018 that its unit cost of sales for enrichment has declined by 15 percent in the first three quarters of the year compared to the same period in 2017. The company expects a larger decline in 2019 cost of sales. Additional reductions are expected in subsequent years. The lower pricing of new supply contracts and pricing adjustments on existing contracts will benefit the company’s bottom line and help Centrus continue to win new sales.
Poneman noted the significance of securing a new customer in the European Union, where trade restrictions on imports of non-EU nuclear fuel have historically made it difficult for U.S. nuclear fuel companies to win sales. Centrus’ long-term supply agreements with Orano Cycle, based in France, will expand Centrus’ access to this important global market.
The estimated value is $85 million for the minimum purchase quantities or $110 million if customers elect to purchase additional flexible quantities. The estimates include signed contracts along with firm commitments under accepted proposals received during the last six months.
About Centrus Energy
Centrus is a trusted supplier of nuclear fuel and services for the nuclear power industry. Centrus provides value to its utility customers through the reliability and diversity of its supply sources – helping them meet the growing need for clean, affordable, carbon-free electricity. Since 1998, the Company has provided its utility customers with more than 1,750 reactor years of fuel, which is equivalent to 7 billion tons of coal.
With world-class technical capabilities, Centrus offers turnkey engineering and advanced manufacturing solutions to its customers. The Company is also advancing the next generation of centrifuge technologies so that America can restore its domestic uranium enrichment capability in the future. Find out more at www.centrusenergy.com.
