JSC Atomenergoprom performed better than expected in 2008 – its first year of full operations – according to the company’s latest annual report.
Atomenergoprom’s total revenue amounted to RUR305.5 billion ($9.4 billion) in 2008, exceeding the target by over 7%. The targeted net profit of RUR27 billion ($0.8 billion) was also achieved. The holding’s export earnings totalled $4.5 billion (including HEU-LEU agreement implemented by JSC TENEX).
Rosatom, the sole shareholder of JSC Atomenergoprom, has approved the firm’s 2008 annual report and accounting statements. Below is a summary of the report.
The last year turned out to be the record one for Russia in terms of NPP output – 162.3 billion kWh (2% more than in 2007) was achieved without commissioning of the new units. The capacity factor rose to 79.5%. As result of such improvements, Atomenergoprom ranked first among Russian generation companies in terms of power generation output.
Russian uranium production increased by 3% in 2008, up to 3521t, or by 4.5% and 3687t if JV Zarechnoye (Kazakhstan) output is taken into account. The company formed a number of joint ventures for uranium exploration and production in Armenia, Namibia, Canada and Russia, and assessed potential Russian involvement in uranium production projects in Ukraine, Mongolia and other countries.
Atomenergoprom also increased international cooperation in 2008. The company entered into contracts for comprehensive supplies of nuclear fuel after 2010 to nuclear power plants in Slovakia, and the Option Agreement involving provision by JSC TVEL of fuel fabrication services for the operating and near-finished NPP units throughout their operation period. The company also entered into contracts with the Chinese Nuclear Energy Company for construction of the gas centrifuge plant, and a long-term contract for supply of Russian EUP/SWU. On 20 March 2008, in Moscow, Atomenergoprom and Toshiba Corporation entered into a framework agreement on business cooperation in various spheres. JSC Atomenergomash acquired the controlling block of shares in Guns Energetika in Hungary and formed on the basis thereof a Russia-Hungary joint venture for production of NPP refuelling equipment.
Russia continued to upgrade its nuclear technologies over the past year. In 2008 the development and production of new generation gas centrifuges continued. JSC ChMZ completed construction of the superconductors production facility, furthering Russia’s international obligations under ITER programme. The company developed technical and feasibility documents for TVSA-PLUS and TVS-2M with higher active zone for operations at Balakovo, Volgodonsk and Kalinin nuclear power stations for 1.5 years under at the increased power levels. The company worked out the five-year fuel cycle programmes, design and feasibility documents enabling the use of 2nd generation fuel at Bohunice, Mohovce, Dukovany, Paks and Loviisa nuclear power plants at the increased capacity levels.
In 2008 Atomenergoprom also established the Russian Gas Centrifuge Engineering Center to act as the HQ to be responsible for design and production of primary and auxiliary equipment for separation enterprises within the nuclear fuel cycle and consolidation of R&D and production assets.
TVEL
2008 was also a successful year for Russia’s nuclear fuel company, JSC TVEL. Total sales in 2008 amounted to RUR52 billion, compared with RUR37 billion in 2007. The company net profit was RUR29.93 billion, six times higher than in 2007 when it was RUR5.83 billion.
TVEL fully fulfilled its contractual obligations on nuclear fuel delivery to Russian and foreign energy and research reactors.
Also in 2008, JSC TVEL completed a number of important tasks that enabled to keep its positions among the four biggest nuclear fuel suppliers in the world and also created a basis for further development. As a result of a successful tender, a strategic contact with the Slovenské elektrárne company (Slovakia) was signed, arrangements of commercial based pricing mechanisms with the Eastern and Central European partners were reached, preparation for conversion to fuel of the second generation for reactors VVER-440 started in Ukraine and Hungary.
In 2008, in the area of "sales of products in USA" contacts with 11 from 31 nuclear power plants operators were established and arrangements with legal and technical consultants were reached and also a project presentation was made in JSC MBP.
The last year was very important for JSC TVEL also in putting the zirconium components and regenerated uranium on the market. One of the important results was preparation of contract documents for semi-processed materials for nuclear fuel delivery to India. After de-restriction of nuclear materials trading for this country, TVEL was the first company that offered mutually profitable conditions for nuclear materials supply.
