EnergySolutions expects economy to gradually recover

10 August 2009

US waste treatment and remediation company EnergySolutions had sales revenues of $373.6 million in the April to June trading period, down 19% compared with 2008. Net income for the quarter fell 42% to $7.3 million.

Commenting on the quarter, Steve Creamer, EnergySolutions CEO said, "Each of our segments continued to execute well during the quarter especially considering the overall economic climate. Some of our commercial customers continue to delay sizable investments in waste remediation, removal and disposal. However, we expect most of this deferred work will eventually flow through EnergySolutions as the economy strengthens, stimulus capital is injected into the economy, and confidence improves."

"We anticipate a gradual rebound in commercial business activity beginning later this year and continuing into 2010. In the meantime, we are working closely with our federal customers to expedite receipt and deployment of economic stimulus capital. We are managing our business carefully to keep our operating expenses in line with our near-term revenue opportunities," Creamer said.

Federal Services revenues for the second quarter of 2009 were $74.7 million, compared with $73.1 million in the second quarter of 2008. Commercial services revenues for the second quarter of 2009 were $23.1 million, compared with $26.2 million for the second quarter of 2008. Logistics, Processing and Disposal revenues for the second quarter of 2009 were $61.6 million, compared to $63.0 million in the second quarter of 2008. Prior to the effects of fluctuations in foreign currency exchange rates, International revenues for the second quarter of 2009 decreased by $19.5 million, compared with the second quarter of 2008, primarily due to a lower reimbursable contract cost base of our Magnox contracts. International revenues were also negatively impacted by $64.3 million due to foreign currency fluctuations.

New EnergySolutions contracts include a $19.2 million contract from URS Corporation to clean up a U.S. Department of Energy (DOE) Separation Process Research Unit test facility in upstate New York and an $84 million increased funding for the Moab Atlas mill tailings project. Contracts awarded by URS-led Savannah River Remediation, LLC will provide funding of up to $56 million to clean up the DOE's Savannah River Site. A recent contract from Battelle Energy Alliance (BEA) to manage waste produced by BEA's laboratory operations at the Idaho National Laboratory site is scheduled to commence shortly and is valued at $19 million. Additionally, the company announced it has been awarded two subcontracts at the Hanford Site Waste Treatment Plant for the support of waste mix testing which, in aggregate, are valued at more than $15 million.


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