2024-07-26 11:47:34
Electricite de France’s net profit rose 21% to 7 billion euros in the first half of the year, driven by a recovery in nuclear and hydro production, but it expects lower market electricity prices to affect its year-end results.
« These operational and financial results are ongoing ” First semester” Showing the efforts of all EDF teams to restore high levels of production » Electric, commented Luc Rémont, Group CEO, in a press release published on Friday.
Losses of 17.9 billion euros in 2022
The power giant has a net profit of 10 billion euros by 2023. In 2022, the country suffered an unprecedented loss of 17.9 billion euros due to difficulties with dams, corrosion problems at several power plants that led to a drop in nuclear output, and delayed maintenance plans due to the coronavirus pandemic.
In addition, in 2022, EDF was unable to take full advantage of the surge in electricity prices, and under pressure from the French government, its 100% shareholder, Sell more electricity to competitors at a discount Alternative suppliers. Last year, this mechanism was not continued, and this time the company was able to both sell more electricity and benefit from sustained prices.
But now the trend is the opposite, market prices are falling, which should affect its profitability at the end of the year.” Due to the rapid decline in market prices », EDF expects “ Decreased significantly » Ebitda (earnings per share, profitability indicator) « Second half of 2024 compared to 2023 “, warned the group.
“Rapid” and “sustained” decline
« We can now see price visibility until around the end of the decade, which suggests that after a very rapid decline (…) The stable level is much lower than the same period last year », said CEO Luc Rémont in a call to journalists.
« We obviously have to anticipate the fall in prices by taking all necessary steps in terms of transformation and economic performance. (…) Next (…) Unleashing the vast financing capacity needed for the investments required for the energy transition in (…) “, he warned.
EDF still has a huge debt of $54.2 billion and faces huge industrial and financial challenges and investment needs of around 25 billion euros per year.
1722209577
#Electricity #EDF #guarantees #rapid #lasting #price #reduction #profit #boost
