B&W Subsidiary Awarded Up to $302 Million in Contracts for Naval Reactors Fuel, Materials Services
CHARLOTTE, N.C.--(BUSINESS WIRE)--The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary Nuclear Fuel Services, Inc. (NFS) has been awarded two new contracts for fuel and materials services totaling up to approximately $302 million from the U.S. Department of Energy, Naval Reactors Laboratory Field Office.
“B&W is pleased to receive these contracts to supply nuclear fuel and materials for the U.S. Naval Reactors program”
The first contract is a one-year contract with a one-year option, which includes the manufacture and delivery of fuel and support activities for the U.S. Naval Nuclear Propulsion Program. NFS has been the sole manufacturer of nuclear fuel for the U.S. Navy's fleet of nuclear-powered aircraft carriers and submarines since 1964.
The second award is also a one-year contract with a one-year option, which provides for the development of material for future Naval Reactors programs.
Work under the contracts will be performed at NFS facilities in Erwin, Tenn. This work began in January 2014 and is scheduled to continue through February 2016.
“B&W is pleased to receive these contracts to supply nuclear fuel and materials for the U.S. Naval Reactors program,” said Joe Henry, President of Nuclear Fuel Services. “We're proud to support these critical defense projects, and are focused on the safe, reliable and cost-effective delivery of these products and services to our Government customer.”
NFS employs a full-time workforce of approximately 1,000 people, including long-term contractors and security personnel.
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,000 people, in addition to approximately 10,200 joint venture employees. Learn more at www.babcock.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including statements relating to the performance, scope and value, to the extent contract value can be viewed as an indicator of future revenues, of the fuel and materials services contracts. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contracts and adverse changes or delays in U.S. Government appropriations. 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 B&W's annual report on Form 10-K for the year ended December 31, 2012 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. B&W 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.