Canada-based uranium producer Cameco Corp. (CCO.TO,CCJ) on Wednesday reported a 93 percent plunge in profit for the first quarter, reflecting lower earnings at the company's uranium segment. The company also recorded lower earnings at its electricity segment.
Adjusted earnings per share for the quarter missed analysts' estimates. The company's shares are down almost 5 percent in the trading on the Toronto stock exchange.
Tim Gitzel, president and CEO of Cameco said, "Our results this quarter are consistent with what we had projected. Deliveries from our uranium segment and revenue from Bruce Power were low, and resulted in lower net earnings. We remain on track with our annual outlook, and have increased our focus on streamlining and efficiency in order to remain competitive in today's uncertain environment."
Uranium revenues for the quarter declined 39 percent, reflecting a 38 percent decrease in sales volumes and a 2 percent decline in the Canadian dollar average realized price. Total electricity revenue decreased 14 percent due to lower output and lower realized price.
Cameco's first-quarter net income was C$9 million or C$0.02 per share, down from C$129 million or C$0.33 per share in the year-ago period.
Adjusted net income for the quarter was C$27 million or C$0.07 per share, compared to C$121 million or C$0.31 per share in the prior-year quarter. On average, ten analysts polled by Thomson Reuters expected the company to report earnings of C$0.08 per share for the quarter. Analysts' estimates typically exclude special items.
The adjusted results for the latest quarter reflect lower earnings from the company's uranium segment based on lower sales volumes as well as lower realized prices, in addition to lower earnings from the electricity segment based on lower generation and higher operating costs.
The company also recorded higher expenditures for administration due to the addition of NUKEM's administration and advisory fee, and costs for corporate restructuring.
Revenue for the quarter declined 5 percent to C$444 million from C$466 million in the same period last year. Analysts had a consensus revenue estimate of C$456.34 million.
Cameco's board of directors approved a quarterly dividend of C$0.10 per share on the company's outstanding common shares, payable on July 15 to shareholders of record at the close of business on June 28.
In Wednesday's regular trading on the Toronto stock exchange, CCO.TO is trading at C$18.66, down C$0.98 or 4.99 percent on a volume of 555,924 shares.
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