EDF returned to revenue final yr at its UK enterprise as war in Ukraine continues to push up value of wholesale energy
EDF returned to revenue final yr at its UK enterprise as the war in Ukraine continues to push up the price of wholesale energy.
The French energy enterprise mentioned underlying revenue was £1.12billion, in contrast with a lack of £21m in 2021. It provides to the string of bumper earnings for energy corporations.
EDF is 84 per cent owned by the French state and shall be absolutely nationalised in a number of weeks.
The firm is likely one of the main gamers in the UK, supplying gasoline and electrical energy to about 5m UK households.
It operates 5 nuclear energy stations in the UK and invested greater than £2.6billion in 2022 in its nuclear, renewables and buyer companies.
In black and white: The French energy enterprise mentioned underlying revenue was £1.12billion, in contrast with a lack of £21m in 2021
Because it would not depend on gasoline to supply energy, EDF has benefited from greater electrical energy prices throughout wholesale markets, permitting it to spice up revenues.
EDF plans to speculate an extra £13billion in the following three years, primarily at Hinkley Point C, the nuclear energy station being constructed in Somerset.
But the agency warned yesterday this new website, which is because of open in 2027, might value as a lot as £33billion as a result of delays and overruns.
Setbacks and delays at Hinkley Point C had already pushed its estimated value to £26billion, from £18billion when the controversial mission obtained the go-ahead in 2016.
For the group at giant, the image was bleak. The firm notched up document annual losses of £16billion in 2022, making it the third largest loss ever by a French firm.
Boss Luc Remont, who was appointed by the French authorities final November, mentioned: ‘Today, our precedence is to place EDF again on monitor’.
Following the outbreak of war in Ukraine, President Macron imposed an energy worth cap to protect French shoppers.
This restricted energy corporations to a 4 per cent rise in 2022 adopted by 15 per cent in 2023.
While the cap saved inflation decrease in France, it meant state-owned EDF was pushed to promote electrical energy at an enormous low cost to its rivals.
Emmanuel Autier, a associate on the BearingPoint consultancy, mentioned this was a strategic transfer to guard shoppers.
He mentioned: ‘The [French] authorities determined to take the loss at EDF degree moderately than at authorities degree after Covid. It dug an enormous gap in EDF to guard the shoppers.’
The dire outcomes come only a day after rival Centrica, which owns British Gas, unveiled £3.3billion profits for the previous yr.
They had been pushed by its North Sea gasoline manufacturing, nuclear energy and excessive volatility in wholesale markets, once more pushed by Russia’s invasion of Ukraine.
British Gas contributed solely £72m to Centrica’s total profits final yr. But the windfall has sparked controversy about why these profits weren’t used to carry down payments.
Other commodity giants Shell, BP and Glencore have all notched up enormous profits in latest weeks.