Nuclear Engineering Remains Promising for Assystem

/ March 17, 2021/ Assystem, Financials, France, India, UK

Nuclear Engineering Activities Relatively Resilient in 2020

Nuclear engineering remains promising for Assystem. Revenues of nuclear engineering proved slightly more resilient during 2020 (with a 4.2% revenue decline at cc/cs) than the company itself (-5.3%). In H1 2020, the activity was impacted by the lockdown in Europe, as nuclear engineering requires a higher level of onsite work than ER&D services. Revenues bounced back in H2, reaching a slight organic growth.

Nuclear Engineering Remains Promising in International Markets for Assystem

The future for Assystem‘s nuclear engineering business remains promising. The future looks promising in international markets in the mid-term. The company is benefiting from its position in the UK, thanks to EDF Energy, with Sizewell and Hinkley Point project. Assystem is also part of the UK Navy’s nuclear refresh of the Clyde naval base. It is also active at the Akkuyu project in Turkey, Finland, and KSA. The company is also investing in Uzbekistan and the Czech republic. Finally, with the STUP acquisition, the company is getting ready for the potential order of six Framatome/EDF EPR nuclear plant acquisitions by the Indian government.

France: Initially Focused on Existing Plants

France remains promising for Assystem’s nuclear engineering business. The French government faces two major decisions: constructing six new nuclear plants based on EPR technology and further expanding existing plants’ lives. The topic is politically-sensitive, and the French government will not decide the 2022 presidential elections. Meanwhile, EDF’s French electricity utility is working on refreshing its nuclear plants and increasing their life by ten years. Assystem points that each project is a EUR 1bn investment and will bring EUR 50m for Assystem. EDF is first focusing on its 32 900 MWe plants. This represents EUR 1.6bn in TCV over a ten-to-fifteen-year period, at least.

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