(Update: Commentary by CFO Xavier Girret on 2H outlook, context of government OPAS project, stock market quotes)
PARIS (Agefi-Dow Jones). Electricity producer EDF revised upward again on Thursday the expected impact of falling French nuclear production on gross margin (Ebitda) in 2022 and posted a large net loss for the first half of the year.
EDF now estimates the impact of the drop in production on its annual Ebitda at 24 billion euros, up from a previous estimate of 18.5 billion euros, electrician CEO Jean-Bernard Levy said during a conference call. EDF has already raised this estimate several times since the end of 2021.
The nuclear power generation forecast for 2022 has been maintained at 280 to 300 terawatt hours (TWh), compared to 360.7 TWh in 2021. In May, this forecast was lowered again.
In addition, EDF still expects its Ebitda to suffer €10.2bn in 2022 due to measures taken earlier in the year by the French government to curb electricity price increases.
In this context, the group’s second half EBITDA will be “significantly lower than the first half,” EDF CFO Xavier Girret warned during a conference call with analysts.
In the first six months of 2022, EDF’s gross operating income was €2.67 billion, down 74.8% from the same period in 2021. At a constant exchange rate and perimeter, EBITDA decreased by 75%.
“Despite strong growth in turnover, supported by electricity and gas prices, EBITDA fell sharply in the first half of 2022,” mainly due to a drop in nuclear power production associated with the corrosion phenomenon. the French government to limit consumer price increases in 2022 and, to a lesser extent, the fall in hydroelectric power production, EDF said in a press release.
In the first half of the year, nuclear power generation in France was 154.1 TWh, down 27.6 TWh year-on-year, “due to lower availability of the nuclear fleet due to the impact of the detection of signs of stress corrosion , despite fewer incidents and optimization of the production schedule,” EDF said.
The net loss of the EDF group for the first six months of this year amounted to 5.29 billion euros, compared with a profit of 4.17 billion euros a year earlier.
The net operating loss reached 1.31 billion euros after a profit of 3.74 billion euros in the first half of 2021. Net current income excludes non-recurring items, net changes in the fair value of energy derivatives and commodities, trading activities and net changes in market value. the value of debt and equity securities, net of taxes.
Strong turnover growth in the first half of the year
Group turnover increased year-on-year by 67.2% on a reported basis and 66.4% on a like-for-like basis to €66.29 billion, driven by strong electricity and gas prices.
According to the consensus set by FactSet, analysts on average forecast an Ebitda of €1.99bn, a net loss of €5.64bn and a turnover of €41.63bn.
France’s hydraulic production, for its part, fell 5.7 TWh on the year to 18.9 TWh “in the context of historically low hydraulics,” EDF added.
The EDF made the announcements when the National Assembly voted Tuesday on the loans the state needs to take over the group entirely. The state intends to pay 9.7 billion euros to buy out 15.9% of EDF shares, which are in the hands of minority shareholders, and to delist the electricity producer through a public simplified purchase offer (OPAS).
The state plans to launch this OPAS at €12 per EDF share with coupon attached and €15.64 per Oceane in the last days of September, delisting at the end of October.
At 10:15 am Thursday, EDF shares shed 0.1% to 11.89 euros, while the SBF 120 index rose 0.2%.
-Alice Dore, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed.: VLV – ECH
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July 28, 2022 04:41 AM ET (08:41 GMT)