Cameco Reports Second Quarter Financial Results

Cameco (TSX:CCO,NYSE:CCJ) announced its second quarter financial results which showed net earnings of $88 million, or $0.22 per share, compared to $127 million, or $0.32 per share, in Q2 2014.
As quoted in the press release:

Net earnings attributed to equity holders this quarter were $88 million ($0.22 per share diluted) compared to net earnings of $127 million ($0.32 per share diluted) in the second quarter of 2014. In addition to the items noted below, our net earnings were affected by mark-to-market gains on foreign exchange derivatives.
On an adjusted basis, our earnings this quarter were $46 million ($0.12 per share diluted) compared to $79 million ($0.20 per share diluted) (non-IFRS measure, see section) in the second quarter of 2014. The change was mainly due to:

• higher administrative costs
• a favourable settlement of $28 million with respect to a dispute regarding a long-term supply contract with a utility customer recorded in the second quarter of 2014

partially offset by:

• higher gross profit from uranium and fuel services segments
• settlement costs of $12 million with respect to the early redemption our Series C debentures recorded during the second quarter of 2014

Tim Gitzel, president and CEO of Cameco, commented:

The company continues to perform well, despite the tough market conditions. Despite some supply disruptions in the first half of the year, prices and demand remained ‘flat’ due to the current oversupply in the market. However, the long-term outlook for nuclear energy, underpinned by strong fundamentals, remains positive. With the long-term view in mind, we remain focused on keeping costs down and running our operations safely and efficiently to ensure we maintain the flexibility to respond to market conditions as they evolve.

Click here to read the full Cameco (TSX:CCO,NYSE:CCJ) press release.