Profile: USEC Inc (USU.N)
3 Dec 2013
USEC Inc. (USEC) is a global energy company, is a supplier of low enriched uranium (LEU) for commercial nuclear power plants. The Company operates in two segments: the low enriched uranium (LEU) segment with two components, separative work units (SWU) and uranium, and the contract services segment. The LEU segment is its primary business focus and includes sales of the SWU component of LEU, sales of both SWU and uranium components of LEU, and sales of uranium. The contract services segment includes work performed for Department of Energy (DOE) and its contractors at Portsmouth and Paducah, as well as nuclear energy services and technologies provided by NAC International Inc. (NAC). The Company supply LEU to both domestic and international utilities for use in about 150 nuclear reactors worldwide. The Company enriches uranium at the Paducah gaseous diffusion plant (GDP) that it leases from the United States DOE.
The Company is deploying advanced uranium enrichment technology, known as the American Centrifuge. USEC provide transportation and storage systems for spent nuclear fuel and provide nuclear and energy consulting services. It also performs contract work for DOE and its contractors at the Paducah and Portsmouth sites.
Low Enriched Uranium
The majority of the Company's customers are domestic and international utilities that operate nuclear power plants. During the year ended December 31, 2011, LEU segment’s international sales constituting 23% of revenue. Its agreements with electric utilities are primarily long-term, fixed-commitment contracts under which the Company's customers are obligated to purchase a specified quantity of SWU from the Company or long-term requirements contracts under which its customers are obligated to purchase a percentage of their SWU requirements from the Company.
The Company performs and earns revenue from contracts work through its subsidiary NAC and from contract work for DOE and DOE contractors at the Paducah GDP and the site of the former Portsmouth GDP in Piketon, Ohio. NAC provides nuclear energy services and technologies, specializing in design, fabrication and implementation of spent nuclear fuel technologies including the high capacity MAGNASTOR system; nuclear materials transportation, and nuclear fuel cycle consulting services.
The Company competes with Urenco, Areva, State Atomic Energy Corporation and GE Hitachi Global Laser Enrichment (GLE).
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