Areva’s Discontinued Renewables Activities Cost it EUR 373 Mln

French energy company, Areva, was hit by the loss of EUR 373 million from discontinued renewables activities.

It comes as a result of provisions for losses at completion on wind, including offshore, and solar contracts.

Chief Executive Officer Luc Oursel said: “The group continues to restructure its operations in renewable energies by entering into partnerships in promising markets, such as offshore wind and energy storage, and by discontinuing loss-making operations, such as concentrated solar power.”

Areva reported 12% drop in revenue to EUR 3,889 million year on year with operating loss of EUR 305 million.

Net income attributable to equity owners of the parent company was also negative, amounting to EUR 694 million.

“The group posted a net loss in the first half of the year. This is the consequence of losses recorded in renewables operations, additional project-related provisions, asset writedowns and a nuclear market environment that has still deteriorated.

“Despite a decline in revenue that was greater than anticipated, the group achieved positive free operating cash flow, an increase compared with the first half of 2013. The success of our recovery actions partially offset the downturn in activity. These actions will be reinforced in the second half of the year to adapt to market conditions,” Oursel concluded.