The following is a summary of the Centrus Energy Corporation (LEU) Q4 2023 Earnings Call Transcript:
Financial Performance:
Centrus Energy achieved its highest revenue in eight years at $320.2 million in 2023, driven by a 14% surge in its LEU business segment.
Profits saw an uptick of 66% compared to the previous year, totaling $84.4 million.
The LEU segment order book continues to hover around $1 billion.
The year ended with a strong cash position reflected by an unrestricted cash balance of $201.2 million.
Company-wide gross profit stood at $112.1 million showing a slight decrease from the previous year.
The purchase of an annuity resulted in the transfer of $186.5 million in pension obligations to an insurance company, reducing the company's pension liability from $43.6 million to $17.3 million.
Business Progress:
Centrus has set up an enrichment operation in Pyrton to cater to America's need for a domestic source of advanced fuel for next-gen reactors.
The completion of Phase 1 of the HALEU contract under budget and ahead of schedule included the construction of advanced centrifuges' cascade.
The company showed optimism in resolving supply chain issues delaying HALEU generation by the end of the year.
Production of advanced reactor fuel began at the Pyrton site, which can potentially house more than 10,000 centrifuges.
The company is prepared to lead in restoring America's domestic uranium enrichment capacity and secure the nuclear fuel supply chain.
Centrus is also drafting a bid for the Department of Energy's March due RFP for HALEU enrichment.
There is an expectation of favorable market conditions leading to higher future sales margins.
More details: Centrus Energy IR
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