Shares in French nuclear group Areva plunged as much as 23 per cent as a negative trading update from the firm raised concerns that it could be forced into a more radical restructuring in response to weak conditions in its industry.

In a statement issued late last night, Areva dropped its financial targets for 2015 and 2016, blaming delays to its Finnish Olkiluoto 3 nuclear project, the slow restart of Japan’s reactors and a lacklustre nuclear market.

Some analysts warned more bad news could be on the way as a new management team, due to take over next month, may want further writedowns and may consider other measures to improve performance.

Areva had also said it was undertaking a review of its strategic outlook and mid-term funding plan and would present a new financial outlook for the 2015-2017 period before it releases its 2014 annual results.

Analysts say it was unusual for Areva to issue the warning so shortly after its October 31st earnings statement, but this could be related to the expected arrival of former Peugeot chief Philippe Varin to take over as chairman.

Reuters