Second-quarter revenue fell 7% to $814mn, largely reflecting an 18% drop in uranium sales volumes due partly to delivery timing. Stronger contracted prices helped offset the decline.
Underlying cash profit (EBITDA) fell 42% to $391mn, with all divisions lower and the steepest decline at Westinghouse, which benefited last year from a Czech nuclear reactor project.
Free cash flow fell sharply to $25mn driven by lower profitability. Net cash was $116mn.
Despite unexpected maintenance outages, production guidance for Uranium and Fuel Services production remains broadly flat, while stronger pricing lifted revenue guidance.
Westinghouse profit expectations are unchanged, but investment plans are ramping up and the business has formally started the IPO process.
Cameco’s shares rose 4.0% in early trading.
Currency: Canadian Dollars
Our view
HL view to follow.
Cameco key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.