Fuel Services
| Highlights | 2014 | 2013 | Change | |
|---|---|---|---|---|
|
||||
| Production volume (million kgU) | 11.6 | 14.9 | (22)% | |
| Sales volume (million kgU) | 15.5 1 | 17.6 2 | (12)% | |
| Realized price ($Cdn/kgU) | 19.70 | 18.12 | 9% | |
| Average unit cost of sales ($Cdn/kgU) (including D&A) | 17.24 | 15.16 | 14% | |
| Revenue ($ millions) | 306 1 | 319 2 | (4)% | |
| Gross profit ($ millions) | 38 | 52 | (27)% | |
| Gross profit (%) | 12 | 16 | (25)% | |
Total revenue decreased by 4% due to a 12% decrease in sales volumes, partially offset by a 9% increase in the realized price.
The total cost of products and services sold (including D&A) remained relatively stable compared to 2013 at $268 million, as a 12% decrease in sales volume was offset by a 14% increase in the average unit cost of sales (including D&A).
The net effect was a $14 million decrease in gross profit.
Outlook for 2015
In 2015, we plan to produce 9 million to 10 million kgU, and we expect sales volumes not including intersegment sales to be 5% to 10% lower than in 2014. Overall revenue is expected to decrease by up to 5% as lower sales volumes will be partially offset by an increase in the average realized price. We expect the average unit cost of sales (including D&A) to increase by 5% to 10%; therefore, overall gross profit will decrease as a result.