EDF Energy has reported a sharp drop in profits in 2016 due to low wholesale gas and electricity prices and continuing customer losses in the face of “strong competition”. Earnings before interest and taxation (EBIT) fell by 29 per cent when compared 2015 to £470 million as customer numbers fell by 80,000 to 5.2 million. EDF Energy chief executive Vincent de Rivaz said: “The exceptional performance of EDF Energy’s existing nuclear power stations is making a huge contribution to security of supply and providing large volumes of reliable, low carbon electricity. Our new nuclear power station at Hinkley Point C will play a vital role as the UK continues to make the transition away from fossil fuels.” “Our investment in renewables and innovative battery technology is further evidence of our ambition to be at the forefront of the UK’s low carbon future,” he added. EBITDA for the whole of the EDF Group fell by 6.7 per cent to €16.4 billion (£13.9 billion) and sales were down 5.1 per cent at €71.2 billion (£60.4 billion). Among the causes was a large drop in French nuclear output due to safety inspections on 18 of its reactors at the request of the country’s nuclear regulator ASN. EDF was forced to extended maintenance and refuelling at other reactors to accommodate the tests.
Utility Week 14th Feb 2017 read more »
Profits at EDF slipped last year as the highest output from its UK nuclear plants in more than a decade failed to offset the impact of lower power prices and safety shutdowns to its reactors in France. The company, which is majority owned by the French state, made 16.4 billion euro in earnings before interest, taxation, depreciation and amortisation, down from 17.6 billion the year before, a 6.7 per cent fall. Its UK division, EDF Energy, which operates Britain’s nuclear power stations and is one of the “big six” household energy suppliers, reported a 14 per cent drop in ebitda to £1.4 billion. The group said that its UK reactors “achieved their highest output since 2003”. However, the “excellent performance of nuclear generation” could only partially offset the “highly negative impact of falling prices” on the UK generation business, which includes wind farms and two coal-fired power stations. EDF said it had only made the investments needed to maintain its British nuclear fleet and extend their lives because of two government interventions: the carbon price floor, which effectively boosts the market power price; and the capacity market, under which power plants will receive extra payments to guarantee their availability. EDF was forced to keep some of its French nuclear reactors offline last year amid safety concerns. Some of the reactors remain shut, which is expected to contribute to a fall in ebitda for 2017 to between 13.7 billion to 14.3 billion euros.
Times 15th Feb 2017 read more »
EDF on Tuesday reported a 7 per cent fall in core earnings for 2016 as low electricity prices and problems at some nuclear power plants weighed on results, although the French utility said it was on track to generate positive cash flow in 2018. State-controlled EDF issued three profit warnings last year, partly due to regulators ordering a temporary halt to operations at 18 of its French nuclear plants after the discovery of high carbon levels in components made by some suppliers. The company, which has a large debt load, has also been hit by lower energy prices across Europe. Meanwhile, the opening-up of the French electricity market to competition has eroded EDF’s once near-monopoly status.
FT 14th Feb 2017 read more »
EDF, the French energy giant building the new nuclear plant at Hinkley Point, plans to shrink its dividends for next year as it wrestles with the spiralling costs of maintaining its ageing nuclear fleet in France. The company issued three profit warnings last year following a string of unplanned nuclear plant shutdowns ahead of its 55bn euro nuclear upgrade programme. In the clearest sign that the financial pressure facing the group will continue EDF said it will cut its dividend ratio by over 10 percentage points in 2018. Mr De Rivaz added that the Hinkley Point C project is making good progress and “is already delivering significant benefits to the national and regional economy, creating jobs and boosting skills and industrial capacity.” “The exceptional performance of EDF Energy’s existing nuclear power stations is making a huge contribution to security of supply and providing large volumes of reliable, low carbon electricity,” he added.
Telegraph 14th Feb 2017 read more »
French state-owned utility firm EDF today said a drop in nuclear production hit its core earnings for 2016. However, it said it will deliver positive cash flow next year before it has to invest in building new reactors in Britain. The French firm has been taking on debt just to pay dividends for several years, according to Reuters. It had negative cash flow of €1.6bn last year, and €2.1bn in 2015, and its due to spend £18bn building two nuclear reactors in Hinkley Point as well as a €50bn upgrade of its French nuclear stations over the next decade. EDF’s board approved a €4bn increase in planned capital raising yesterday, and the French state is set to subscribe for €3bn, Reuters said.
City AM 14th Feb 2017 read more »