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Cameco (TSE:CCO), the world’s largest publicly-traded uranium company, said Q3 earnings were 30% higher at $104 million or 26 cents a share compared to the same quarter last year.
However, losses on foreign exchange derivatives have driven up costs for the year. Net earnings for the first nine months of 2011 were $186 million or 47 cents per share diluted. In 2010 net earnings were $311 million or 79 cents per share. The company also said that lower earnings and higher prices were weighing on all three sets of businesses: electricity business, uranium business and fuel services business.
Cameco’s stock opened on Monday 2.66% lower at $21.08 per share.
The company says it is still on track to double uranium production by 2018 and spent $575 million on capital expenditure.
“Despite the near- to medium-term uncertainty, in the long term we continue to see a very strong and promising growth profile for the nuclear industry. Countries around the world, with very few exceptions, have reconfirmed their commitment to nuclear energy. China, India, France, Russia, South Korea, the United Kingdom, Canada, the United States, and almost every other country with a nuclear program are maintaining nuclear as a part of their energy mix.”
Cameco noted that Saudi Arabia plans to build 16 reactors by 2030.
The company summed up what it saw as the uncertainty in the market.
“The biggest drivers of uncertainty are concerns about excess German and Japanese uranium inventories and the extent to which deferrals and/or cancellations under sales contracts will introduce additional volumes into the market.”
