Paris - AFP
Areva said Tuesday it would cut investments further and step up sales of non-strategic assets as the French nuclear power group tries to shore up its finances.
The company, which is 87.0-percent owned by the French state, said it would cut planned capital expenditure by 200 million euros over the next two years to bring it to 1 billion euros ($1.265 billion) per year.
It said it would also make 450 million euros in disposals of non-strategic assets and minority stakes by the end of 2016, after having sold off 1.2 billion in assets since beginning a restructuring programme in 2011.
"The work on AREVA’s recovery continues despite the ongoing unfavourable market environment," chief executive Luc Oursel said in a statement.
Depending on market conditions, Areva said it may conduct a hybrid bond issue to help refinance maturing debt. The company reported a net debt of 4.7 billion euros at the end of June.
Areva reported a net loss of 694 million euros for the first half of the year due to losses on its renewable energy activities and continuing problems in the market for nuclear power equipment.
The company is at risk of losing its investment grade rating from Standard & Poor's, which was expected to decide as soon as Wednesday whether it will keep Areva at BBB-.
Losing the investment grade rating would means some investment and pension funds would no longer be able to hold the company's bonds and likely make it more expensive for Areva to borrow.