France

France

Areva renewables losses more than double

FRANCE: Areva has reported full-year 2013 results that show losses in its renewable energy division contributed to its overall poor performance.

Areva said it is currently installing 120 of its M5000 turbines
Areva said it is currently installing 120 of its M5000 turbines

"The renewable energies business impacted negatively the group's 2013 net income," the energy firm said in a release.

Revenue in the division was down 32% to EUR 390 million, leading the business to post an EBITDA loss of EUR 165 million, compared with a loss of EUR 59 million in 2012.

But the company reiterated its commitment to expanding its wind operations, and said that the installation of 120 5MW turbines is in progress globally.

While the renewables division also covers solar, biomass and energy storage, the majority of the division's revenues come from its offshore wind business.

The company characterised the renewable energy market as being "marked by a reduction of capital spending by customers".

It cited this as the reason for its recent link up with Gamesa to form an offshore wind joint venture, saying that consolidation is needed. The two manufacturers will work together on an 8MW turbine.

Last September, Areva replaced the CEO of its wind division, Jean Huby, after two years in the role.

Areva confirmed in October that Huby had been replaced but was unable to give further details about the reasons for his replacement. However his replacement coincided with problems for the manufacturer surrounding faulty turbine components.

In January, Areva reached agreement on shedding 160 jobs at its Bremerhave turbine factory in Germany following negotiation with the works council.

Shares in Areva dropped 10% on Thurday morning after the company as a whole posted a net loss of EUR 494 million, with revenue falling 4%.

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