EDF sees UK earnings slump

Lower realised nuclear prices mainly to blame says French firm

EDF’s earnings in the UK have slumped by more than a third, according to the latest set of financial figures from the French energy giant.

The company’s half-yearly results for 2017, which were published today (28 July), show earnings before interest, taxes and amortisation (EBITA) was down on an organic basis by 34.4 per cent in the British market to €627m in the first six months of the year, compared to €1.1 billion in the same time period in 2016.

According to the report, this was “mainly due to the significant impact of lower realised nuclear prices”.

Across the group EBITA fell on an organic basis by 20.6 per cent to €7 billion, with net income excluding non-recurring items down by 53.8 per cent to €1.4 billion.

The firm’s electricity output from nuclear power in its native French market fell by 3.9 per cent to 197.2TWh, while it increased in the UK market by 4.2 per cent to 32.2TWh.

The report also revealed the amount of electricity generated by EDF through hydropower in France fell by 16.5 per cent to 21.3TWh.

It also revealed the company’s EBITA for generation and supply activities in France fell on an organic basis by 28.9 per cent to €2.45 billion.

“In an unfavourable market context and in line with its forecasts, the group is continuing to implement its performance plan and maintains its annual objectives,” said company chairman and chief executive, Jean-Bernard Levy.

“The first half of 2017 was marked by an acceleration in the area of renewable energies with, in particular, the takeover of Futuren and the increase in installed net capacity. The reorganisation of the French nuclear sector has also reached essential and positive milestones in recent months.”

Earlier this month, EDF admitted the controversial nuclear power station Hinkley Point C is already on course to breach its budget by £1.5 billion.

The company said the projected cost for Hinkley Point C is now estimated at £19.6 billion.