BWXT Awarded $690 Million Extension for Environmental Management Work at Portsmouth

Rhea-AI Summary

BWX Technologies, Inc. (NYSE: BWXT) has secured a contract extension valued at up to $690 million from the U.S. Department of Energy (DOE) for environmental management work at the Portsmouth Gaseous Diffusion Plant. This extension, effective March 29, 2021, includes a one-year term with two additional six-month options. The contract involves decontamination, demolition, and ongoing environmental remediation at the site, which was operational from 1954 to 2001. BWXT expresses confidence in its capabilities, highlighting its extensive experience in supporting DOE's Environmental Management mission.

Positive

• Contract extension valued at up to $690 million enhances revenue potential.
• Ongoing work at Portsmouth emphasizes BWXT's expertise in environmental remediation.

Negative

• Contract extension is subject to modification, termination, or delays, introducing uncertainty.

BWX Technologies, Inc. (NYSE: BWXT) today announced a contract extension, valued at up to $690 million including options, from the U.S. Department of Energy (DOE) for environmental management work at Portsmouth Gaseous Diffusion Plant.

The agreement took effect on March 29, 2021, and includes a one-year extension with two additional six-month options. Cleanup work at the site has been conducted by joint venture Fluor-BWXT Portsmouth, LLC (FBP) since the contract was awarded in 2010.

FBP is responsible for decontamination and decommissioning (D&D) of the Portsmouth site. The scope of the project includes deactivation, demolition and disposal of selected site facilities, process equipment, related process buildings and other ancillary facilities. It also includes continued environmental remediation, uranium stewardship and community outreach programs.

“BWXT is very pleased that the DOE has extended another contract for the important work at Portsmouth in partnership with Fluor,” said Ken Camplin, president of BWXT’s Nuclear Services Group. “We believe that BWXT’s footprint at seven sites supporting the DOE’s Environmental Management mission demonstrates the breadth and depth of our company’s waste management, environmental remediation and site cleanup capabilities.”

The Portsmouth Gaseous Diffusion Plant operated from 1954 to 2001. Located in Pike County, Ohio, the site occupies about 3,700 acres. The plant was one of three large gaseous diffusion plants in the U.S. initially constructed to produce enriched uranium to support the nation’s nuclear weapons program and, in later years, enriched uranium used by commercial nuclear reactors. The DOE began its environmental cleanup program at the site in 1989, and the effort continues today in cooperation with the U.S. and Ohio Environmental Protection Agencies.

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 financial performance, of the contract extension. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract extension, failure to exercise the options thereto and/or delays. 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, Va., 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.

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FAQ

What is the value of the contract extension announced by BWXT?

The contract extension is valued at up to $690 million.

When did BWXT's contract with the DOE for Portsmouth begin?

The contract began in 2010 and was extended on March 29, 2021.

What does the contract extension for BWXT include?

It includes decontamination, demolition, and environmental remediation at the Portsmouth site.

How long will the contract extension last?

The extension includes a one-year term with two additional six-month options.

What is the historical significance of the Portsmouth Gaseous Diffusion Plant?

The plant operated from 1954 to 2001 and was used for producing enriched uranium for the U.S. nuclear weapons program.