Orano, a leading French nuclear fuel cycle company, plans to significantly increase investments following a substantial profit of 633 million euros in 2024. The company aims to diversify into uranium, anti-cancer drugs, and battery materials while addressing challenges in Niger. With a strong market outlook, Orano is committed to expanding its operations and enhancing its mining and enrichment capabilities, seeking to reduce reliance on Russian uranium and exploring new ventures, including collaborations in nuclear medicine and battery production.
Orano, the prominent French nuclear fuel cycle enterprise, is poised to elevate its investments significantly, fueled by its remarkable profit for 2024. The company aims to diversify its portfolio, tapping into areas such as uranium, anti-cancer pharmaceuticals, and battery materials.
In 2024, Orano reported an impressive profit of 633 million euros, which is nearly threefold the 217 million euros earned in 2023. Additionally, the company achieved a turnover of 5.87 billion euros, marking a 23% increase, as disclosed in a statement on Wednesday.
These impressive results were bolstered by a unique contribution from contracts with Japanese electricity firms, coinciding with the return of radioactive waste from Japan to the La Hague facility. This action was necessitated by legislation prohibiting the storage of radioactive waste from abroad.
Furthermore, a favorable pricing trend in natural uranium, conversion, and enrichment—key steps in nuclear fuel production—has been observed. This market boost aligns with the renewed global interest in nuclear energy, as noted by David Claverie, the group’s financial director.
While these results are categorized as exceptional for being atypical, CEO Nicolas Maes emphasized that they reflect a “sustainably positive” trend. Many nations previously contemplating the phase-out of nuclear energy are now extending operations or even considering a return to it. This shift has resulted in significant price increases for Orano’s products due to improved market conditions.
Despite facing challenges in Niger with its mining subsidiaries, including Somaïr, Cominak, and Imouraren, Orano has managed to mitigate adverse effects in 2024. Claverie attributed these issues to consistent local government interference, leading to a loss of control over these subsidiaries and a subsequent removal from the group’s accounts, resulting in provisions and write-downs of 193 million euros.
Expanding Market Presence Beyond Russia
Orano maintains that there is no imminent risk of uranium shortages for its electricity clients, thanks to a diversified supply chain spanning Canada and Kazakhstan. “The best way to navigate an uncertain world is by having options,” Maes stated. The group has also formed an agreement with Mongolia to exploit a substantial deposit and is exploring opportunities in Uzbekistan and Namibia.
Following an investment of 980 million euros in 2024, Orano plans to boost its investment by 30 to 40% in 2025 to advance its core nuclear business and explore new ventures in nuclear medicine and electric vehicle batteries. By 2035, these new sectors could potentially contribute up to 20% of Orano’s revenue, according to Maes.
Through its subsidiary Orano Med, in collaboration with Sanofi, the company is working on an innovative anti-cancer drug derived from the rare metal lead-212. In the battery sector, Orano has partnered with XTC New Energy from China, establishing two joint ventures in Dunkirk aimed at producing essential materials. A decision regarding the first plant’s investment is anticipated by the end of 2025.
Orano is also engaging in discussions with various European entities regarding battery recycling, following the suspension of a joint venture project with Stellantis in September.
To meet its investment requirements, the company executed a capital increase of 300 million euros in October, primarily subscribed by the French state, which holds a 90.33% stake in the company.
In its core operations, Orano aims to amplify its mining output and enhance its enrichment capabilities by one-third. With plans to expand its enrichment plant in Tricastin, the company seeks to capture market share from Russia, the current leader in the sector, while responding to the demand from electricity providers looking to reduce their dependency on Russian enriched uranium for fuel production.