France's Areva records heavy net loss in 2014, plans cost cut

French leading nuclear group Areva's net loss reached 4.83 billion euros(5.37 billion U.S. dollars) in 2014, a net loss for the fourth consecutive year, forcing the group to bet on a 1 billion euro cost cut and expand partnerships, it said on Wednesday.

Compared to a 494 million euro loss registered in 2013, Areva's 2014 net loss soared sharply because of major spendings, including the 720 million of new provisions on its Olkiluoto 3 Finnish reactor project, the state-owned group said.

Last year's revenue stood at 8.33 billion euros, down 7.2 percent compared with that of 2013. Avera's main nuclear sector generated only 8.21 billion euros over the period, down by 7.3 percent, it added.

"At the end of 2014, the group's performance was burdened by the recurring difficulties encountered on three major projects, by insufficient profitability levels in most businesses faced with declining revenue and a changing product mix, and by additional losses related to its renewables operations," Areva said.

With the aim to face challenges, Areva unveiled "a solid transformation plan" with which the group pledged to trim costs by 1 billion euros, bolster cooperation with utility firm EDF and expand operations in China.

In addition, the French group said it would detail a three-year financing plan before publication of first-half results on July 30 that would include more selective capital expenditures, asset disposals and partnerships with an equity component.

For 2015, Areva expected negative net cash flow between 1.7 billion euros and 1.3 billion euros and was targeting a positive operating cash flow in 2017 and a positive net cash flow a year after.( 1 euro = 1.12 U.S. dollars) Enditem