Sogin: Board of Directors approves 2018 Financial Statements

21 May 2019

Best year for decommissioning activities since the foundation of the company

• Nuclear decommissioning activities: EUR 80.7 million (+ 41% vs 2010-2017 average)
• Structural reduction of Group personnel: -9.5% in the three-year period (1,173 employees at 31.12.2018 compared to 1,296 at 31.12.2015)
• Sogin Group production value: EUR 195.8 million (+ € 3.7 million compared to 2017)
• Sogin Group operating profit (EBIT): EUR 12.1 million (+ € 1.7 million compared to 2017)
• Contracts to third parties signed in 2017-2018: EUR 35 million (a value greater than the sum of the previous seven)

Sogin Board of Directors, chaired by Sogin President Marco Ricotti, approved today the financial statements project for 2018 presented by the CEO, Luca Desiata.

Sogin Group ended the 2018 financial year with a production value of EUR 195.8 million (192.1 in 2017), net of non-recurring items related to the closure of the fuel cycle.

During 2018, Sogin continued the activities to optimize operating costs, to re-launch the construction sites and to develop decommissioning projects with a high engineering content.

The volume of business related to the decommissioning of the italian nuclear sites reached, in 2018, a value of EUR 80.7 million: the best results since the company has been founded (+ 41% compared to the 2010-2017 average) and a further, clear improvement compared to the already high value of 63.2 million reached in 2017.

With reference to the Group consolidated financial statements of 2018, the EBIT increased by 16,5%, from EUR 10.4 million of 2017 to EUR 12.1 million of 2018.

Sogin achieved an operating profit (EBIT) of EUR 8.0 million (6.0 million in 2017).

In 2018 continued the trend aimed at a structural reduction of staffing levels of the Group, decreased from 1,210 units in 2017 to 1,173 at December 31, 2018, with a reduction of 37 employees (-3%).

Compared to the 1,296 employees at December 31, 2015, the overall personnel reduction over the three-year term of office of the Board of Directors in charge (2016-2019) has been 123 units (-9.5%).

Therefore, Group personnel costs fell from € 92.8 million in 2016 to € 89.0 million in 2017 and 86.9 million in 2018 (-5.9 million compared to 2016).

Overall, the cost reduction policy started in 2016, continued and, in 2018, recorded operating costs of EUR 126 million, -10% compared to the peak of 140.6 million in 2015 (net of external costs commensurate with the progress, fuel, depreciation and provisions).

In 2018, the positive performance of Sogin Group in the signing of contracts with third parties, both in Italy and abroad, continued with agreements for EUR 14.2 million (+ 133% compared to the 2007-2017 average).

This result, added to the EUR 20.8 million of 2017, brings the total amount reached in 2017-2018 to 35 million, a value higher than the sum of the seven previous years.

All the workplace safety indexes have improved, with a 40% reduction in the total number of injuries (from 15 to 9) compared to 2016, even though 2018 has seen a significant increase in activities.

During this year, the Company was committed to implementing a strategy aimed at reducing the environmental impact of its decommissioning activities

This strategy is based on the minimization of radioactive waste volumes, on the efficiency of energy consumption, on the recycling of materials produced by dismantling activities and on the reuse of plant buildings in order to avoid new buildings, in a circular economy perspective.

The decommissioning of nuclear installations will allow the recycling of almost 1.3 million tons of materials (concrete, metals, plastic, and so on.), which represents about 90% of all the material that will be dismantled.