(MENAFN- AFP) Areva's share price lost nearly a fifth of its value on Wednesday after the French nuclear giant announced it was suspending its outlook for the next two years.
Trading had been suspended on Tuesday afternoon, but as of 9:34 am (0834 GMT) the value had fallen 18.49 percent to 9.83 euros in otherwise flat trading on the CAC 40.
The stock, which is at its lowest since June 2012, has been under pressure for several months and has lost half its value since the beginning of the year. It already dropped 20 percent on August 1 when it announced a lower forecast for 2014.
In addition to financial and operational problems, Areva is overhauling its governance.
Tuesday's announcement came as energy group EDF confirmed that it would delay until 2017 the launch of a new generation EPR reactor designed by Areva that is under construction in the northern French town of Flamanville.
The company, which is 87 percent owned by the French state, said that because of operational delays some client payments could not be expected until next year.
"AREVA is undertaking a review of its strategic outlook and mid-term funding plan, which will be examined in the framework of its governance," it said in a statement.
"AREVA is suspending its financial outlook for 2015 and 2016," it said.
"Their reasons are many and recurring," a Parisian stock broker said, noting in particular delays in restarting nuclear plants in Japan and "reticence vis-a-vis the international nuclear market, both for the construction of new plants and the market for recycling (nuclear fuel)."
He added: "The situation is such that Areva has begun a strategic revision... ahead of the governance changes."
Analysts at French bank Societe Generale said the timing of Areva's announcement was "surprising" coming after they published dismal third quarter sales figures.
It said the company was at a "high risk" of a credit downgrade to BB+, adding: "It seems clear that Areva will require a cash infusion in the near term."
According to the magazine Challenges, the government is considering injecting 2.0 billion euros ($2.5 billion) into the company.
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