PARIS: French utility EDF said on Tuesday its revenue in the first nine months of 2016 fell 4.7 percent to 51.97 billion euros ($57 billion) but it still targets positive cash flow in 2018 after dividends, smart meter investments and asset disposals.
The state-owned utility said the market environment was adverse, notably due to a drop in electricity prices, especially in France and in the United Kingdom over the first nine months of the year, increased competition and the end of regulated tariffs for retail customers in France.
It also confirmed a revised 2016 core earnings target of 16-16.3 billion euros after cutting it twice this year from an original forecast for 16.3-16.8 billion euros.
EDF said nuclear output had been crimped due to additional safety checks, in particular on steam generators, which reduced nuclear output in the first nine months by 6.3 percent to 287.1 terawatthours (TWh). Last week, EDF cut its 2016 nuclear power output target for the third time this year to 378-385 Twh.
EDF finance director Xavier Girre told analysts on an earnings call that EDF would update its 2017 nuclear output target early next year.
About a third of EDF’s nuclear reactors are closed for scheduled maintenance as well as safety checks after nuclear regulator ASN ordered additional inspections following the discovery of irregularities in manufacturing documentation and high carbon concentrations which could weaken steel resilience.
“Our priority is to demonstrate to the ASN that our reactors can operate safely,” Girre said. EDF head of nuclear and thermal Dominique Miniere also said the company had sent a dossier to the ASN about anomalies in the steel of the reactor vessel under construction in Flamanville, France, which is scheduled to start up in 2018.
He said EDF expects an answer from the ASN in the first half of 2017 and is confident the regulator will let construction go ahead with the current reactor vessel.
EDF also said it had started exclusive negotiations with IFM Investors to sell EDF Polska’s combined generation assets, as part of its asset disposal plan announced in April. ($1 = 0.9058 euros)
