Infrastructure
Nuclear Waste Company Fires CEO, Reduces Guidance (ES, UEC, URRE, CCJ, DNN, D, EXC, DUK, GE)
Published:
Shares of nuclear waste disposal company Energy Solutions Inc. (NYSE: ES) are getting pummeled today following the announcement that the company has appointed a new CEO and that the company has lowered 2012 adjusted EBITDA guidance from a previous range of $150-$160 million to $130-$140 million. The company blamed the lowered guidance on a slowdown of shipments to its facilities in the Utah desert about 80 miles west of Salt Lake City, a delay in a new project, and slower progress than expected toward cost reductions.
Nuclear stocks are fighting declines from end to end. Uranium miners Uranium Energy Corp. (AMEX: UEC), Uranium Resources Inc. (NASDAQ: URRE), Cameco Corp. (NYSE: CCJ), and Denison Mines Corp. (AMEX: DNN) are all down anywhere from -46% (UEC) to-93% (URRE). The decline is traceable to last year’s disaster in Japan, which has led to a decision in that country to reduce dependence on nuclear energy and a decision in Germany to shut down all existing nuclear generation by 2022.
In the US, power providers like Dominion Resources Inc. (NYSE: D), Exelon Corp. (NYSE: EXC), and Duke Energy Corp. (NYSE: DUK) have applications pending for more than 25 new generating units. New nukes in the US are at least a decade away, if they ever make it through the regulatory regime at all. Turbine makers like General Electric Co. (NYSE: GE) and Toshiba could also be waiting a long time for new business. Nuclear energy, from mine to clean-up, is a long-term play in what is now a very short-term market.
In addition to replacing the company president, Energy Solutions also replaced the CFO.
Energy Solutions’ stock is down about -55% this morning at $1.61 after posting a new 52-week low of $1.55 earlier. The previous range is $2.76-$5.43.
Paul Ausick
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