The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary Nuclear Fuel Services, Inc. (NFS) has been awarded contract options for work totaling approximately $169 million from the U.S. Department of Energy, Naval Reactors Laboratory Field Office. This work has been awarded under the $302 million contract B&W previously announced in 2014.
The work to be completed under these options includes the manufacture and delivery of fuel and support activities for the U.S. Naval Nuclear Propulsion Program, as well as development of material for future Naval Reactors programs. 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.
Work under these contracts is being performed at NFS facilities in Erwin, Tenn. The work began in January 2015 and is scheduled to continue through February 2016.
“Receiving the award for these second-year contract options is further validation of the excellent work we do at NFS,” said Joel Duling, President of NFS. “I am proud of our team, and we look forward to supporting the Department of Energy and the U.S. Navy in these critical defense projects through the completion of this contract.”
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 11,600 people, in addition to joint venture employees located at projects around the world. Follow us on Twitter @BabcockWilcox and 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 contract option with the DOE. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and adverse changes or delays in U.S. Government appropriations for the U.S. Naval Nuclear Propulsion Program. 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, 2013 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.
Nuclear Fuel Services, Inc.
Vice President, Treasurer and Investor Relations
The Babcock & Wilcox Company