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Nuclear group Areva in the red again

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By Euronews  with Reuters
Nuclear group Areva in the red again

Nuclear power group Areva has reported a full-year net loss of 2.038 billion euros, its fifth consecutive annual loss.

The French state-controlled firm blamed extra costs at a reactor project in Finland for half of that.

The rest was due to restructuring expenses and other costs related to market conditions including reduced demand for uranium, nuclear fuel and services.

The group said it has enough funds for this year thanks to bank loans and will sell five billion euros worth of new shares by the first quarter of 2017 to stay afloat.

Areva’s stock has lost more than 60 percent of its value over the past 12 months, most of that in the last six months with investors worried about its ability to repay its debt.

Areva is 87 percent state-owned and the French government has promised to subscribe to the new share issue.