2018-08-01 09:15:00
EDF NUCLEAR & HYDRO UP
PLATTS - Europe's biggest utility EDF has lifted its full year earnings target following a sharp increase in French nuclear and hydro production in the first half of the year, it said Tuesday with its quarterly earnings report.
EDF maintained its annual French nuclear output target of 395 TWh and reported further progress in the regulator-requested Creusot review of its entire nuclear fleet with 34 reactors now cleared and 48 files submitted to the ASN by July 30.
French nuclear output in the first six months was up 2.7% on year at 202.6 TWh, it said.
EDF's French hydro output for the period soared 37% to 29.3 TWh thanks to exceptional hydro conditions and French hydro at its highest H1 level since 2003, it said.
This helped to boost organic EBITDA growth at its French power generation unit by 49% to Eur3.6 billion ($4.2 billion) for H1 2018, it said.
The 13 TWh increase in nuclear and hydro output had a very favourable impact on EBITDA estimated at Eur544 million, it added.
Improved price conditions on the wholesale market also helped with EDF Trading benefitting from a context of volatility in commodities markets, it added.
"Moreover, actions to optimize and reduce operating costs, mainly carried out in France, also contributed to this performance," the EDF statement added.
EDF management expects no major impact from potential nuclear output restrictions for river-based reactors in the South due to the current heatwave, but described the upgrade to its FY earnings target as cautious with particularly the nuclear output target leaving some provisions for the remainder of 2018.
"We would rather like to be conservative considering our historic record on that matter [unplanned nuclear outages in H2 2016 and 2017]," EDF CEO Jean-Bernard Levy said during a conference call with analysts when questioned about specific expectations for the second half of the year.
PPE ENERGY PLAN REPORT DELAYED TO AUTUMN
EDF management also confirmed ongoing discussions with the government on the ARENH price mechanism, which EDF believes is no longer needed.
"ARENH costs a lot of money for EDF which goes directly to our competitors, which are doing well now," management said adding that there was no decision yet by the government with the sector awaiting the first report on the PPE energy program by the government, which has been delayed until the autumn.
The PPE will set guidelines for the French energy mix over the coming decade with energy minister Nicholas Hulot calling for PPE to include specifics on planned reactor closures.
EDF CEO Levy also said that he expects the government's energy policy to focus more on a decarbonization of transport and heating towards "low-carbon electricity" without offering any specifics.
"The Group is pursuing its transformation and the deployment of CAP 2030 strategy in the service of the energy transition," the CEO said in its key statement with management focus on nuclear life-span extensions, renewables expansion and even potentially new nuclear projects in France.
According to the CEO, current power prices can finance the nuclear extension plans without the need for new regulation.
EDF also hopes to have concluded the permitting process for three offshore wind projects on the French Atlantic coast with a combined capacity of almost 1.5 GW by early-2019 and start construction in order to benefit from government subsidies, which are still at an attractive level despite the cuts agreed last month.
EDF reported no further news on delays to its new EPR project at Flamanville, but added that its Fessenheim nuclear power plant would remain open longer than initially planned with challenges remaining to the 2019 nuclear outlook mainly due to a number of extended maintenance stops including the first of a kind for its Tricastin-1 reactor following 40 years of operation.
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Earlier:
2018, July, 6, 11:20:00
FRENCH NUCLEAR SAFETYFT - A French government commission has called for improvements in the safety of the country’s nuclear power plants, including their ability to withstand terrorist attack, putting further pressure on state-backed power utility EDF. |
2018, June, 29, 10:20:00
INDIA'S STRATEGIC NUCLEARWNN - GE and EDF have signed a strategic cooperation agreement for the planned construction of six EPR reactors at the Jaitapur site in Maharashtra, India. The document was announced by Xavier Ursat, senior executive vice president of EDF in charge of new nuclear projects and engineering, and Andreas Lusch, president and CEO of GE's Steam Power business. |
2018, June, 29, 10:15:00
RUSSIA - FRANCE NUCLEAR COOPERATIONROSATOM - ROSATOM and the French EDF Group signed a Memorandum of Understanding on Development of Innovative Cooperation at the World Nuclear Exhibition 2018 (WNE). The document was signed by Alexey Likhachev, General Director of ROSATOM and Jean-Bernard L?vy, Chairman and CEO of EDF Group. |
