Areva earnings hit by new provision for Finland reactor project

French nuclear group Areva said first-half earnings were hit by another provision for its troubled reactor construction project in Finland, but the group stuck by its 2013 profit outlook.

Areva said it booked a 150 million euro (130 million pounds) charge related to the construction of its flagship EPR reactor in Olkiluoto, Finland, which is years behind schedule and billions of euros over budget. Provisions on the project now total about 3.3 billion euros.

Finnish utility Teollisuuden Voima (TVO) said in February it did not expect Areva's EPR reactor to start producing power before 2016, seven years behind schedule.

Areva has never said when it expects the reactor to start and did not mention it on Wednesday either.

Another EPR reactor under construction in Flamanville, France is experiencing similar delays and cost overruns, but two EPRs being built in China are on budget and on schedule.

Areva has not sold a new reactor since 2007, when China Guangdong Nuclear Power Corp in Taishan bought the two EPRs.
[link to www.nucpros.com]
.