Fourth Quarter Results by Segment – Fuel Services

(includes results for UF6, UO2 and fuel fabrication)
  Three months ended
December 31		  
Highlights 2015 2014 Change
  1. 1 Includes sales and revenue between our uranium, fuel services and NUKEM segments (339,000 kgU in sales and revenue of $2.9 million in Q4 2015, 0.5 million kgU in sales and revenue of $4 million in Q4 2014).
Production volume (million kgU) 3.4 2.7 26%
Sales volume (million kgU) 1 4.5 7.4 (39)%
Average realized price ($Cdn/kgU) 21.88 16.92 29%
Average unit cost of sales (including D&A) ($Cdn/kgU) 17.18 14.78 16%
Revenue ($ millions) 1 99 125 (21)%
Gross profit ($ millions) 21 16 31%
Gross profit (%) 21 13 62%

Total revenue decreased by 21% due to a 39% decrease in sales volumes, partially offset by a 29% increase in average realized price.

The total cost of sales (including D&A) decreased by 28% ($78 million compared to $109 million in the fourth quarter of 2014) mainly due to a 39% decrease in sales volumes, partially offset by an increase of 16% in the average unit cost of sales, primarily as a result of the mix of products sold.

The net effect was a $5 million increase in gross profit.