2015 Financial Results by Segment – Fuel Services
|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.