Centrus Energy Secures DOE Contract for HALEU Deconversion Process
Centrus Energy Corp., a leading nuclear fuel provider, announced that its subsidiary, American Centrifuge Operating, LLC (ACO), has been selected by the U.S. Department of Energy (DOE) as one of six awardees to support the deconversion of High-Assay, Low-Enriched Uranium (HALEU) from uranium hexafluoride (UF6) to uranium oxide and/or uranium metal. This process is crucial for the production of nuclear fuel.
The contract awarded to ACO has a minimum value of $2 million, with the total value for all awardees potentially reaching up to $800 million. The amount for ACO will depend on the task orders issued and their respective values.
Amir Vexler, President and CEO of Centrus Energy, highlighted the significance of the award in advancing the nuclear fuel supply chain and enhancing the capabilities of the company's Ohio facility. Centrus Energy aims to reclaim leadership in the U.S. nuclear fuel sector as the only U.S.-owned enrichment company utilizing American technology and American workers.
Centrus Energy has been actively developing centrifuge technologies to potentially restore U.S. domestic uranium enrichment capabilities in the future. The company has supplied over 1,750 reactor years of fuel since 1998, equivalent to avoiding the use of 7 billion tons of coal.
In recent financial news, Centrus Energy reported mixed first-quarter 2024 results with a total revenue of $43.7 million, a gross profit of $4.3 million, and a net loss of $6.1 million. The company secured a contingent supply commitment with Korea Hydro & Nuclear Power as part of its efforts to secure $1.8 billion in sales commitments for expanding its operations.
InvestingPro Insights:
- Centrus Energy's strong financial performance aligns with its recent DOE contract award.
- The company has shown impressive revenue growth and robust EBITDA growth over the last twelve months.
- Centrus has been profitable and is expected to continue being profitable.
- Investors have noticed the company's potential, with significant returns over various time frames.
Overall, Centrus Energy's recent contract win and strategic positioning in the nuclear fuel sector make it a compelling investment opportunity for those interested in the evolving landscape of the nuclear fuel industry.