(MENAFN- AFP) Shares in French nuclear power group Areva fell heavily on Friday after the group reported a first-half loss and lowered its outlook.
Areva shares were showing a fall of 12.21 percent to 13.66 euros in morning trading, in an overall French market which was down 0.91 percent.
Areva reported a net loss of 694 million euros ($929 million) for the first half compared with a balanced result showing no loss at the same time last year, blaming big losses from renewable energy activities and continuing problems in the market for nuclear power equipment.
Operating activities turned in a loss of 305 million euros from a profit of 290 million euros last time.
Sales by the group, which is 87.0-percent owned by the French state, fell by 12.3 percent to 3.9 billion euros and for the whole year are now likely to fall by 10.0 percent, the group warned, instead of sliping by 2.0-5.0 percent as expected previously.
But the value of the order book increased to 44.9 billion euros from 42.7 billion euros a year ago, boosted by a contract with French electricity giant EDF worth 6.5 billion euros for a plant to recycle nuclear fuel waste and to produce MOX fuel.
One French stocks analyst who declined to be named commented that "as expected, 2014 will be a difficult year" for Areva but the targets had been revised downwards mainly for short-term reasons reflecting delays in projects and an unexpectedly weak business environment for the company.
But the group was strengthening its efforts to maintain profitability by reducing costs and investment, he said.
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