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EDF Energy has posted profits in excess of £1 billion, despite its retail arm suffering heavy losses due to the soaring cost of energy.
The French energy firm said a stronger operational performance in its UK nuclear fleet resulted in earnings before interest, tax, depreciation and amortisation (EBITDA) of £1.12 billion.
It is a sharp turnaround in performance compared to a £21 million loss recorded in 2021. That loss resulted mainly from a 4TWh downturn in nuclear output and from a “substantial decrease in realised nuclear prices”.
Prior to 2021, EDF recorded profits of c£700 million in 2020 and £684 million in 2019.
Across the last year EDF’s UK nuclear fleet produced 43.6TWh of power, up 1.9TWh on the year previously despite Hunterston B and Hinkley Point B ending generation.
As well as strong operational performance, the company said this reflected “sustained expenditure” on maintenance and upgrades made to the stations in prior years, with more than £1.3 billion spent across 2020-22. It plans to invest a further £1 billion over the next three years across its five remaining stations.
Elsewhere EDF’s supply business made a loss of more than £200 million as soaring wholesale costs meant the cost of buying the energy for its domestic customers was higher than the prices allowed under the default tariff cap.
It comes as rival Centrica recently posted record group profits of £3.3 billion, with retail arm British Gas seeing its profits dip by £46 million to £72 million.
One industry expert told Utility Week British Gas’ results reflected the fact that energy supply is “a tough business to be in”.
Referencing the company’s customer-facing businesses, Investec analyst Martin Young said: “They were very small contributors to the overall mix and I think once again it reinforces the wider-held view in some quarters that supply, while things are improving as an industry, is a tough business to be in.
“People are not making huge amounts of money in the supply of electricity and gas to the British public.”
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