Partner Article

Renewables result in EDF profit increase

EDF has seen profits rise by 4.6% in the first half of the year as renewable energy growth offset falling nuclear output.

Shares at the French state-controlled utility firm also saw an 8.2% increase in sales to £28.3 billion. Between January and June, net income was £2.2 billion.

The latest results pushed the company’s shares up by 1.4% in early trading.

This increase came despite more planned nuclear outages this year than last, as hydropower and other renewable energies made up the difference. Exclusive of one-off charges, the group’s net income grew by 10.3%.

The Group also attributed their better than expected results to a reduction in costs, while the growth in operating expenses was less than inflation in France, indicating the cost controls in place.

However, the company’s chief executive Henri Proglio has now warned that the second half of the year could be more complicated as the firm faces challenges in Italy.

Earlier this year EDF bought out Italian power firm Edison, and is in the process of renegotiating staff contracts at the company. EDF are also in the process of renegotiating gas contracts as a declining consumption puts increasing pressure on margins.

Despite this the company still expects net income excluding non-recurring items to grow by between 5% and 10% this year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .