France’s EDF saw a 20% rise in first-half profit due to increased electricity production, but the company warned that falling market prices would impact second-half earnings. Despite facing various issues at its nuclear plants, EDF, which was renationalized last year, managed to bring many reactors back online.
It also added renewable energy capacity and improved performance at its hydropower projects. Net income jumped to 7 billion euros ($7.6 billion), and earnings before interest, tax, debt, and amortization (EBITDA) rose 16.1% to 18.7 billion euros.
EDF produced 259 terawatt-hours (TWh) of electricity in the first half, up 12% from last year. Nuclear output also increased 12% to 177.4 TWh. Excluding the new Flamanville 3 reactor, France’s nuclear power output for the year is expected to be between 314 and 345 TWh.
The company is close to starting the first nuclear reaction at Flamanville 3, with power production set to begin a few weeks later. The reactor’s costs have soared from an initial 3 billion euros to 13.2 billion euros as of the end of 2022.
EDF noted that regional market prices have dropped and warned that EBITDA in the second half would decrease year on year. In Britain, EDF is in talks with the newly elected Labour government about its Hinkley Point C (HPC) and Sizewell C nuclear projects.
CEO Luc Remont said it is “a bit early” to provide a final investment decision date for Sizewell. The company also acknowledged potential delays in the HPC schedule and is exploring financial solutions for the project.
