Annual report, 1990-1991

At the beginning of the 1990/91 fiscal year the government of Canada announced that it would maintain the CANDU nuclear option, increase R and D funding for AECL Research, and authorize the start of negotiations to build a prototype CANDU 3 reactor. Later in the year AECL signed contracts with the Korea Electric Power Corporation to supply a second CANDU reactor for the Wolsung site. Consolidated net income was $7.8 million, after a $10.2 million loss in 1990. Revenue from nuclear power operations increased 11 percent to $187 million, with a 23 percent increase in the contribution from nuclear supply and services. Research and development expenditures rose to $293 million in 1991 from $259 million in 1990. The increase was mainly in cost-shared work on waste management, safety, health and environmental programs. Cost recovery revenue, principally from Ontario Hydro, increased to $87 million, reducing the federal government's share to 53 percent compared to 87 percent in 1985. Federal funding of R and D has been maintained at the 1990 level. The net expense of R and D operations was reduced to $11.0 million compared to $22.6 million in the previous year. Cash flow from all sources amounted to $47.9 million, leaving AECL with adequate working capital for the next year. In the future higher capital investment than previously anticipated will be required for waste management facilities associated with commercial isotope production. All figures are given in Canadian dollars