EDF warns on profits as nuclear output slumps

Outages at EDF Group’s nuclear power stations will hit profits by €29bn, the French energy giant warned on Thursday.

In a brief note, the firm said that based on its current estimated nuclear output in France for 2022 being at the lower end of its forecast 280-300TWh range, the impact on earnings before interest, tax, depreciation and amortisation was now likely to be around €29bn.

The estimate is a sharp rise on EDF’s previous forecast, for a hit of €24bn.

Currently, more than half of the 56 reactors run by EDF are offline, with corrosion problems adding to regular maintenance stoppages. Nuclear power production at its plants is at a three-decade low as a result, and EDF - normally an exporter of power - has been forced to buy power on the volatile wholesale markets to make up the shortfall.

EDF expects nuclear output improve to between 300 and 330TWh in 2023, and be between 315 and 345TWh in 2024, however.

The listed firm is 84% controlled by the French state, which is set to launch a tender offer this autumn for the remaining 16% it does not own.

The energy firm has 38.5m customers, including a number in the UK, although the bulk - around 29.3m - are in France. It operates eight nuclear reactors in the UK, including Sizewell on the Suffolk coast.