BWXT Awarded $35 Million in Uranium Processing and Research Reactor Fuel Contracts

Rhea-AI Summary

BWX Technologies, Inc. (NYSE: BWXT) announced $35 million in contracts awarded to its subsidiary, BWXT Nuclear Operations Group, for uranium recovery and conversion and research reactor fuel line construction. The U.S. Naval Nuclear Propulsion Program awarded a $17.4 million contract for uranium recovery, while the U.S. Department of Energy’s NNSA awarded $17.9 million for a HALEU fuel project. These projects leverage BWXT's expertise in nuclear fuel processing and support global security by promoting nonproliferation.

Positive

• Awarded $35 million in contracts, enhancing revenue prospects.
• U.S. Naval Nuclear Propulsion Program contract of $17.4 million for uranium recovery increases operational capabilities.
• NNSA contract of $17.9 million reinforces BWXT's position in the nuclear fuel market.

Negative

• Potential risks include contract modifications or terminations affecting revenue.

BWX Technologies, Inc. (NYSE: BWXT) announced today that its BWXT Nuclear Operations Group, Inc. (BWXT NOG) subsidiary has been awarded a total of $35 million in contracts under two separate programs – uranium recovery and conversion as well as construction of a new research reactor fuel line.

“These awards showcase BWXT’s unique capabilities in processing and manufacturing nuclear fuels, our long history fueling research reactors and our dedication to enhancing global security,” said BWXT NOG President Joel W. Duling.

Uranium recovery and conversion

The U.S. Naval Nuclear Propulsion Program has awarded BWXT NOG a $17.4 million contract for uranium recovery and conversion. An additional option is expected to be awarded later this year.

This contract funds the recovery of valuable uranium from scrap, waste and unused product to be converted into fuel to feed future Naval Nuclear Propulsion Program products. BWXT owns the only two Category 1 nuclear facilities licensed by the Nuclear Regulatory Commission to store and process highly enriched uranium.

This work began at the BWXT NOG facility in Lynchburg, Virginia in January 2021 and is expected to be completed by June 2022.

HALEU research reactor fuel project

The U.S. Department of Energy’s National Nuclear Security Administration (NNSA) awarded a $17.9 million contract to BWXT NOG to complete the second phase of the construction of a new research reactor fuel line BWXT previously announced.

The contract funds the repurposing of a portion of the Lynchburg uranium processing facility to be used to manufacture uranium-molybdenum alloy High Assay Low Enriched Uranium (U-Mo HALEU) fuel. This fuel will facilitate conversion of high-performance U.S. research reactors that currently use high enriched uranium. The NNSA has encouraged the conversion of research reactors and medical isotope production facilities from the use of high enriched uranium to reduce the risk of the fuel being diverted for nefarious purposes.

BWXT has been supplying fuel elements and assemblies manufactured in Lynchburg for research and test reactors for decades and is the only North American supplier of fuel-bearing components for reactors at national laboratories, colleges and universities.

Forward Looking Statements

BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing, impact and value, to the extent contract value can be viewed as an indicator of future revenues, of the contracts for uranium recovery and conversion and second phase of the nonproliferation research reactor fuel program; the exercise of any option awards; and the timing, benefits and impact of the foregoing. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contracts and/or options and delays in production of or limited demand for U-Mo HALEU. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2020. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Virginia, BWXT provides safe and effective nuclear solutions for national security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,700 employees, BWXT has 12 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXTech and learn more at www.bwxt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210311005062/en/

FAQ

What contracts did BWXT announce on March 11, 2021?

BWXT announced $35 million in contracts, including $17.4 million for uranium recovery and $17.9 million for HALEU research reactor fuel.

How will the uranium recovery contract impact BWXT?

The $17.4 million contract for uranium recovery will enhance BWXT's capabilities in processing nuclear fuels and contribute to future revenues.

What is the purpose of the HALEU fuel project awarded to BWXT?

The HALEU fuel project focuses on converting high-performance research reactors to use low enriched uranium, promoting nonproliferation.

When is the expected completion date for the uranium recovery work?

The uranium recovery work is expected to be completed by June 2022.

What are the potential risks associated with BWXT's new contracts?

Potential risks include contract modifications, terminations, and delays in production, which could impact actual revenues.