Electricite de France SA reported a historic loss for 2022 after repairs choked its nuclear output, but the utility predicted a significant rebound in earnings this year as production recovers.
(Bloomberg) — Electricite de France SA reported a historic loss for 2022 after repairs choked its nuclear output, but the utility predicted a significant rebound in earnings this year as production recovers.
The state-controlled generator swung to a net loss, excluding non-recurring items, of €12.7 billion ($13.5 billion) last year after a profit of €4.7 billion in 2021, according to a statement on Friday. Its net financial debt soared 50% to €64.5 billion in 2022.
The company’s woes exacerbated the region’s energy crisis by turning France — traditionally a powerhouse producer — into a net importer of electricity. President Emmanuel Macron’s government, which is trying to regain full ownership of the nuclear giant to reassure creditors, wants new Chief Executive Officer Luc Remont to restore production and prepare the company to start building new reactors in France and the UK.
Read more: Cracking Under Pressure: The Race to Fix France’s Nuclear Plants
EDF was forced to buy back its production shortfall on the wholesale market last year as the energy crunch pushed prices to records. The company also suffered from a price cap set by the government to protect consumers.
EDF is seeking compensation worth €8.34 billion before the Paris administrative court for losses arising from the price-cap mechanism.
Read more: France’s Lower House Advances Bill to Block EDF Asset Sales
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