EDF expects $29 billion in profits to be hit by lower nuclear output – Update

By Mauro Orru and Giulia Petroni

Electricité de France SA said on Thursday it expects a bigger drop in base revenue this year due to lower nuclear output in France as Europe struggles to contain an energy crisis triggered by the Russian invasion of Ukraine.

France’s power utility sees an impact of around 29 billion euros ($28.94 billion) on earnings before interest, taxes, depreciation and amortization in 2022 compared to a previous forecast of around 24 billion euros at the end of July.

Nuclear output is expected to be in the lower end of a range of 280 terawatt hours to 300 terawatt hours this year, the company said.

For 2023, production is confirmed in a range between 300 TWh and 330 TWh.

EDF said it would revise its group targets for next year after the French government announced on Wednesday it would cap electricity and gas price increases at 15% for households and small businesses in 2023.

The utility, France’s nuclear energy provider, has been saddled with huge debt after hemorrhaging cash for years, and is now in the process of being nationalized entirely.

This year, power generation from its nuclear fleet has dropped significantly, in part due to corrosion issues, and the company has had to shut down a number of reactors for inspections and repairs.

Write to Mauro Orru at [email protected] and to Giulia Petroni at [email protected]

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