BWXT Nuclear Energy Canada Awarded CA$168 Million Contract Extension for OPG Nuclear Fuel Manufacturing

PETERBOROUGH, Ontario--(Business Wire)--BWX Technologies, Inc. (NYSE:BWXT) announced today that its subsidiary BWXT Nuclear Energy Canada Inc. (BWXT NEC) has been awarded a CA$168 million, five-year contract extension to manufacture fuel for Ontario Power Generation’s (OPG) Darlington and Pickering nuclear generating stations. The deal extends BWXT NEC’s current fuel manufacturing arrangement with OPG to the end of 2023.
Monday, March 12, 2018

PETERBOROUGH, Ontario--(Business Wire)--BWX Technologies, Inc. (NYSE:BWXT) announced today that its subsidiary BWXT Nuclear Energy Canada Inc. (BWXT NEC) has been awarded a CA$168 million, five-year contract extension to manufacture fuel for Ontario Power Generation’s (OPG) Darlington and Pickering nuclear generating stations. The deal extends BWXT NEC’s current fuel manufacturing arrangement with OPG to the end of 2023.

“We are proud to be continuing our role in producing fuel bundles for OPG’s nuclear fleet,” said John MacQuarrie, President, BWXT Canada Ltd. and BWXT NEC. “This contract represents clean, low-cost and reliable electricity for millions of people in Ontario and sustains hundreds of high-value jobs across our facilities in Peterborough, Toronto and Arnprior.”

“The safe operation of our nuclear fleet is our number one priority,” said Glenn Jager, OPG Nuclear President and Chief Nuclear Officer. “We are pleased to award this five-year contract extension to manufacture fuel for our Pickering and Darlington Stations. BWXT has a long history of supplying reliable, high-quality fuel that meets the stringent requirements of reactor operating conditions. The nuclear industry contributes over $5 billion annually to the Canadian economy and supports about 50,000 jobs in Ontario. BWXT is a large part of the success of nuclear in this province.”

Three of BWXT’s Canadian-based operations (Peterborough, Arnprior and Toronto) will directly benefit from the positive impacts of the contract extension. The Arnprior operation produces zirconium-alloy tubes, while the Toronto facility produces natural uranium pellets. These components are shipped to the BWXT Peterborough facility where they are assembled into fuel bundles.

“I congratulate OPG and BWXT on this important contract,” said Jeff Leal, Peterborough Member of Provincial Parliament. “Ontario’s nuclear industry is an important economic engine in this province, and it is great to feel those benefits right here in Peterborough.”

BWXT NEC has been manufacturing fuel for OPG since the early 1970s, when the first fleet of Pickering (28 element fuel) reactors came on line. Later, BWXT NEC manufactured fuel for the Bruce and Darlington reactors (37 element fuel) as they came online throughout the 1980s and into the 1990s. Today, and for the past 17 years, BWXT NEC has been the sole fuel manufacturing supplier to OPG, providing both 28 and 37 element fuel bundle designs.

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 OPG fuel contract extension. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and 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, 2017 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. 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

Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial nuclear power industry. With approximately 6,100 employees, BWXT has nine 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 @BWXTech and learn more at www.bwxt.com.

About OPG

OPG owns and operates the Pickering and Darlington Nuclear Power Stations. The two stations have a combined generating capacity of about 6,600 megawatts and supply low-cost, reliable and clean electricity to meet approximately 35 percent of Ontario’s energy needs. OPG’s power is priced 40 percent lower than other generators, which helps moderate customer bills.

 

Media Contact
BWXT Nuclear Energy Canada
Sara Forsey, 705-927-0429
sforsey@bwxt.com
or
Investor Contact
Alan Nethery, 980-365-4300
Vice President and Chief Investor Relations Officer
investors@bwxt.com



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