2015 Financial Results by Segment – Fuel Services
| Highlights | 2015 | 2014 | Change | |
|---|---|---|---|---|
|
||||
| Production volume (million kgU) | 9.7 | 11.6 | (16)% | |
| Sales volume (million kgU) 1 | 13.6 | 15.5 | (12)% | |
| Average realized price | ($Cdn/kgU) | 23.37 | 19.70 | 19% |
| Average unit cost of sales (including D&A) | ($Cdn/kgU) | 18.87 | 17.24 | 9% |
| Revenue ($ millions) 1 | 319 | 306 | 4% | |
| Gross profit ($ millions) | 61 | 38 | 61% | |
| Gross profit (%) | 19 | 12 | 58% | |
Total revenue increased by 4% due to a 19% increase in the realized price, partially offset by a 12% decrease in sales volumes.
The total cost of products and services sold (including D&A) decreased by 4% compared to 2014 ($258 million compared to $268 million in 2014), as a 12% decrease in sales volumes was partially offset by a 9% increase in the average unit cost of sales (including D&A). When compared to 2014, the average unit cost of sales was 9% higher due to the mix of fuel services products sold.
The net effect was a $23 million increase in gross profit.
Fuel services outlook
In 2016, we plan to produce 8 million to 9 million kgU, and we expect sales volumes, not including intersegment sales, to be up to 5% lower than in 2015. Overall revenue is expected to increase by up to 5% as lower sales volumes will be more than offset by an increase in the average realized price. We expect the average unit cost of sales (including D&A) to increase by 10% to 15%; therefore, overall gross profit will decrease as a result.