EDF Profit Falls as Power Prices Retreat and Income Taxes Climb

(Bloomberg) -- Electricite de France SA said profit fell last year as European wholesale power prices retreated while income taxes rose, and warned earnings may slide further in 2025.

EDF posted record results for 2023, but it’s since borne the brunt of slumping prices as sluggish economic growth weighs on demand. Regulated tariffs in France were also cut this month, damping the outlook for this year. Meanwhile, EDF is facing soaring expenditure for nuclear projects at home and in the UK.

Current net income excluding non-recurring items dropped by €3.2 billion ($3.4 billion) last year to €15.2 billion, the state-owned utility said in a statement Friday. Income taxes roughly doubled, while net financial debt was little changed at €54.3 billion.

“The price drop of the electricity market is continuing, which will have a significant impact” this year, Chief Executive Officer Luc Rémont said on a conference call.

The group’s net income rose by €1.4 billion to €11.4 billion as it booked lower impairments than in 2023. 

EDF took a charge of €800 million on its Hinkley Point C nuclear project in the UK, citing a revised inflation rate, as well as charges of €900 million and €300 million, respectively, on the US Atlantic Shores offshore wind project and the Neart na Gaoithe wind project in the UK.

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