Electricité de France SA (EDF.FR) Thursday lowered its nuclear output target for the year but kept its financial objectives as it reported a 6.9% increase in revenue for the first nine months of the year, thanks to price hikes in the summer, the integration of Edison's sales and the colder weather than usual in the first half.
Electricité de France SA (EDF.FR) Thursday lowered its nuclear output
target for the year but kept its financial objectives as it reported a 6.9%
increase in revenue for the first nine months of the year, thanks to price
hikes in the summer, the integration of
Edison
's
sales and the colder weather than usual in the first half.
EDF said it now expects its nuclear power generation to amount to 405 to 410
terawatts an hour, or TWh, due to longer-than-planned reactor outages, notably
in the third quarter. The group initially targeted nuclear output for the year
of 415 TWh.
EDF, one of the world's largest power producers, has set ambitious electricity
production targets as it seeks to become one of the biggest European power
providers. The group has based its strategy on the low-cost energy provided by
its stable of nuclear reactors, the world's largest with 58 in
France
and
15 in the
U.K.
, and
its hydroelectric plants. Higher production lowers costs, allowing the group
financial elbow room for its expansion and its investments.
EDF, which is 85%-owned by the French state, recently announced a deal with the
British government to build and operate for 35 years up to two new nuclear
reactors in the
U.K.
The
terms of the deal are considered as extremely favorable for EDF, which obtained
a guaranteed price for the power it will produce there set at GBP92.5 per
gigawatt. The price also will be indexed to inflation.
But the cost of building the new reactors are estimated at around GBP14 billion
or $22.5 billion, an amount EDF will share with Chinese partners China General
Nuclear Corp. and China National Nuclear Corp., as well as French engineering
firm Areva SA (AREVA.FR). Yet, this will happen at a time the French group
needs to invest substantial amounts to expand the lifespan of its French
reactors and to increase their safety, due to stricter regulations following
the Fukushima nuclear disaster in March 2011.
Over the first nine months of the year, EDF's revenue grew 6.9% to 55.16
billion euros, from EUR51.61 billion a year earlier, matching expectations as
10 analysts polled by the company had expected EUR55.14 billion.
EDF noted that at end September, it had saved around EUR800 million, as it
initially planned to save EUR1 billion in costs this year. It revised upwards
its savings target for this year to EUR1.2 billion.
It also reiterated its financial targets for the year. It still seeks a 3%
organic growth at least in earnings before interest, tax, depreciation and
amortization, or Ebitda, excluding Edison, while it still targets Edison's
Ebitda at around EUR1 billion.
EDF recently clinched a deal over the ownership of energy maker and supplier
Dalkia with venture-partner Veolia Environnement SA (VE, VIE.FR), granting it
all of Dalkia's activities in
France
while
Veolia will retain the international businesses and pay EUR550 million in cash
to EDF.
Dalkia generates and distributes power for municipalities and local services
such as hospitals from small plants located close to their customers. EDF and
Veolia have been fighting over the control of the much-profitable unit since
2011.
The group said the transaction is expected to improve its net debt and net
debt/Ebitda ratio: the impact in 2014 on net debt should be positive by
approximately EUR1 billion, including roughly EUR400 million from the
transaction and around EUR600 million from the change in consolidation rules
that go into effect on
Jan.
1, 2014
.
As for the Ebitda, the full-year impact is likely to be negative by less than
EUR100 million, "the unfavorable effect from end of proportional
consolidation of Dalkia International and Dalkia Investissement being largely
offset by the positive effect of the transaction," it said.
The transaction is expected to be finalized mid-2014 at the earliest.
Διαβάστε ακόμα
Παρ, 26 Ιουλίου 2024 - 16:04
Παρ, 26 Ιουλίου 2024 - 16:02
Τετ, 24 Ιουλίου 2024 - 15:10
Τετ, 24 Ιουλίου 2024 - 15:06
Τρι, 23 Ιουλίου 2024 - 16:51