France's Nuclear Giant's Areva Stock Meltdown


  • France's Nuclear Giant's Areva Stock Meltdown

    Call it a post-Fukushima hangover.

    On 12 December French nuclear energy giant Areva SA, the world’s biggest supplier of nuclear fuel and services, asked that trading in its shares be suspended shortly before the opening of the Paris Stock Exchange, the company said.

    Areva SA shares subsequently fell 5 percent before modestly rebounding 1 percent on 13 December. Since the beginning of the year Areva SA shares have lost 47 percent of their value.

    This will hit Jean Sixpack directly in the pocketbook, as Areva SA is majority owned by the French state.

    Why the reversal of fortune? Areva SA acknowledges a 2011 consolidated operating loss of $1.84-$2.1 billion, but attributes it largely to debts incurred related to its June 2007 acquisition of South African uranium exploration company UraMin, running up $1.9 billion in depreciation.

    Areva SA is a major player in the global nuclear energy market, with its activities covering the whole process from the extraction of uranium to the disposal of nuclear waste.

    Source: oilprice.com