French nuclear firm AREVA’s dismal financial results for 2014 are indicative of the continuing stagnation of nuclear operations, a lack of competitiveness, and the company’s difficulties in managing the risks inherent in large projects, CEO Philippe Knoche said today.

The company reported a loss of €4.9 billion ($5.6 billion) for 2014 in line with a preliminary report released on Feb. 23. That compares to a loss of €500 million suffered in 2013. AREVA said the loss is attributable in part to delays and cost overruns at the Olkiluoto 3 EPR project in Finland and a research reactor construction project, as well as to renewable energy contracts.

“The group understands how serious this situation is,” Knoche said in a statement. “A comprehensive strategic review of operations was undertaken beginning in November 2014 and is being carried out without compromise. As a result, AREVA is now able to announce a solid transformation plan that sets a challenging but economically realistic course for our teams.”

AREVA will seek to refocus its core business, Knoche said, which is “mastery of key nuclear processes essential to operators around the globe. This strategic redeployment will lead to the revision of certain goals, whether in the management of new reactor projects or in renewable energies.”

The company, which was counting on a nuclear power growth spurt worldwide, will also be forced to “adapt to new market realities,” Knoche said. Significantly, it will implement a “completely revamped approach to managing risk in large projects.”

Other key aspects of the company’s “transformation plan” include reforging a partnership with EDF—the utility that operates France’s 58-reactor fleet—and strengthening its presence in China.

To offset sales that fell 8% in 2014 and are expected to fall another 5% this year, the company will sell €430 million of assets, including in renewable energy. It will also implement cost cuts, including a freeze on salaries.

Sonal Patel, associate editor (@POWERmagazine, @sonalcpatel)