France’s EDF Swings to Profit After Nationalization

Electricite de France returned to profitability in 2023 after the French government completed the nationalization of the group, in a year marked by higher nuclear power output in the country.

The French state-owned utility on Friday posted a net profit of 10.02 billion euros ($10.79 billion) for last year compared with a EUR17.94 billion loss in 2022, when EDF grappled with a decline in nuclear and electricity output and regulatory measures that France put in place to shield consumers from price increases after Russia’s invasion of Ukraine.

In 2022, corrosion at some nuclear reactors led EDF to shut down several sites, forcing the group to buy electricity on Europe’s wholesale power market after prices soared following Russia’s decision to cut shipments of natural gas to the continent.

EDF reported earnings before interest, taxes, depreciation and amortization—its preferred bottom-line metric—of EUR39.93 billion last year compared with a EUR4.99 billion loss in 2022.

Chief Executive Luc Remont said 2023 marked the return of EDF’s operational performance at a better level after what he called a difficult year. “With these good results, EDF has met its financial targets and reduced its financial debt.”

The government of President Emmanuel Macron in 2022 decided to fully nationalize EDF by acquiring the remaining shares that it didn’t already own for about EUR9.7 billion, saying the move was needed to manage EDF’s transition away from fossil fuels and safeguard France’s energy independence. At the end of July 2023, the French state owned 100% of EDF.

EDF’s annual sales slipped to EUR139.72 billion from EUR143.48 billion. Nuclear power output in France reached 320.4 terawatt hours last year, 41.4 TWh more than in 2022.

The group said that 15 of the 16 reactors most sensitive to stress corrosion had been repaired by the end of 2023, with 46 reactors online at the beginning of January 2024. EDF is forecasting nuclear output in France between 315 TWh and 345 TWh for 2024 and 335 TWh to 365 TWh for 2025 and 2026.

Write to Mauro Orru at [email protected]