NIAEP to merge with Atomstroyexport after it breaks even in 2015
NIZHNY NOVGOROD. Jan 31 (Interfax) - OJSC Atomenergoproyekt Nizhny Novgorod Engineering Company (NIAEP) plans to legally merge with Atomstroyexport (ASE), Russia's general contractor for nuclear power plant construction abroad, after the latter reaches a breakeven point in 2015, NIAEP senior vice president for economics and finance, Vladimir Kats said Wednesday after a discussion of the outline for the company's annual report.
"We might have merged more quickly if not for this unfortunate figure. Therefore, we must first eliminate the loss and only then merge. We intend to eliminate this multibillion loss at ASE in 2015 and after this merge in the format, as we expect, of ASE into NIAEP," Kats said, adding that "this is a preliminary forecast."
ASE's debt accumulated on "old nuclear power plants," Kats said.
NIAEP materials obtained by Interfax show that NIAEP and ASE had combined revenue of 63.615 billion rubles, negative EBITDA of 1.848 billion rubles, a pretax loss of 8.675 billion rubles and net loss of 12.963 billion rubles.
Kats told Interfax that NIAEP closed 2012 with a gross profit of 1.7 billion-1.8 billion rubles on revenue of about 40 billion rubles.
The materials state that NIAEP and ASE combined are expected to have a net loss of 6.293 billion rubles on revenue of 86.153 billion rubles in 2013; a net profit of 0.247 billion rubles on revenue of 157.854 billion rubles in 2014; respectively 12.098 billion rubles on 229.616 billion rubles in 2015; 6.249 billion rubles on 259.665 billion rubles in 2016; and 7.311 billion rubles on 317.544 billion rubles in 2017.
NIAEP's head of strategic development and market monitoring, Nikolai Leontyev said at the discussion of the annual report outline, said state nuclear corporation Rosatom, the parent company of NIAEP and ASE, wants the merged company to increase revenue to $15 billion by 2030.
He said ASE and industry-specific contracts make up most of the order book at present, but in future there are plans to develop a diversified portfolio that will ensure the sustainability of the business, with 30% of orders outside the electricity sector.
NIAEP designs and constructs turnkey nuclear power plants and nuclear reactors.
A decision was made at the end of 2011 to combine NIAEP and ASE, and NIAEP director Valery Limarenko was also appointed acting president of ASE. Rosatom combined NIAEP and Atomstroyexport in March 2012, making NIAEP the managing company of Atomstroyexport.
The unified company has a network of offices to manage projects to construct facilities, among which are a design institute in Nizhny Novgorod, three NPP construction management offices (Nizhny Novgorod, Moscow, St. Petersburg), and representative offices in 11 European and Asian countries, where there are plans to implement projects (Belarus, Bulgaria, Hungary, Vietnam, India, Iran, China, Slovakia, Turkey, Ukraine, Czech Republic). The package of projects being implemented includes over 20 under-construction or planned power units in Russia and abroad.