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French energy giant EDF reported profit drop in 2017

EDF

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The French energy giant EDF reported profit drop in 2017, due to lower electricity production related with the unexpected problems with a number of nuclear reactors that the company operates.
The report shows that pre-tax profit of EDF declined by 16.3% to 13.7 billion EUR. The France’s nuclear power plants generated 379 terawatts of electricity, representing a decrease of 1.3%. The company forecast production between 390 and 400 terawatt hours of electricity from its nuclear plants in France. EDF has 58 reactors in the country.
The company has lost one million of its consumers in France due to the production problems and its share reaches 85.5% of this market segment. The sales revenue also declined by 2.2% to 69.6 billion EUR.
There is also decrease in activity in the nuclear units operated by the French giant in the UK (1.8% to 63.9 terawatt hours) and the water power plants in France (by 12.5% ​​to 37.1 terawatt hours).
Last year, EDF suffered several unplanned interruptions in the operation of nuclear reactors in France due to security concerns. Longer than expected were closed four reactors. The revenues from electricity sales in France thus drop to 4.8 million EUR.
“The market situation in 2017 was difficult”, said the CEO of Electricite de France (EDF), Jean-Bernard Levy. Nevertheless, the energy giant manages to reduce its debt and Levy looks optimistic for 2018. The company has confirmed the expected profit this year (between 14.6 billion EUR and 15.3 billion EUR) and will give a dividend in amounting to 0.46 EUR per share.