Cameco 1Q Earnings Rise On Increased Volumes, Realized Uranium Price
First Published Tuesday, 1st May 2012 02:08 pm - © 2012 Dow Jones
Dow Jones NEWSWIRES
Cameco Corp. (CCJ) posted higher earnings and revenue in the first quarter on a 33% increase in sales volumes.
Saskatoon, Sask.-based Cameco, the world's largest uranium miner, said its average realized uranium price improved even though spot and long-term uranium prices were lower in the latest period. It earned C$132 million or 33 Canadian cents a share, up from C$91 million or 23 Canadian cents a year earlier.
Adjusted earnings of 31 Canadian cents a share beat analyst expectations; the Thomson Reuters mean estimate was for a profit of 28 Canadian cents a share.
Revenue, meanwhile, rose 22% to C$563 million and also exceeded analyst expectations, which were for revenue of C$553 million, according to Thomson Reuters.
Last year was a challenging one for the nuclear industry, as the disaster at Japan's Fukushima-Daiichi reactor caused many countries to rethink their reliance on nuclear power.
"Uncertainty remains in the market in the near to medium term as a result of the events in Japan that occurred one year ago in March. Nevertheless, we continue to see a strong and promising growth profile for the nuclear industry in the long term," the comapny said in a statement Tuesday.
Cameco said in February the full-year 2012 revenue would be flat or decline 5% due to lower realized prices for uranium and lower sales in its fuel services business, partly offset by higher sales in its electricity business. It projected a 3% drop in uranium production to 21.7 million pounds. It reiterated that outlook Tuesday.
-By Carolyn King, Dow Jones Newswires; 416-306-2100; email@example.com