EDF, the French state-controlled energy firm, announced a record annual loss and significant debt, caused by the consequences of the Ukraine conflict and the shutdown of various nuclear reactors.
Nevertheless, the company reported a climb in UK profits to £1.1bn due to the improved performance of its nuclear fleet and rising prices. In 2022, EDF’s debt surged to £57.5bn, and losses amounted to £16bn.
The corporation grappled with reduced electricity output last year, as it had to shut down some of France’s 56 nuclear reactors to address corrosion problems and a heatwave caused a decline in hydro-power production.
Furthermore, following Russia’s invasion of Ukraine, the French government directed EDF to sell energy to customers at less than cost to help them pay their utility bills. EDF’s revenue increased by 70% to £128bn due to surging energy prices.
The firm has earmarked more than £13bn for investment in the next two years in the UK, mainly at Hinkley Point C, with roughly £2bn for its existing nuclear fleet and renewable projects.
CEO Luc Remont mentioned that the 2022 results were significantly impacted by the drop in electricity output, along with unique regulatory measures introduced in France under harsh market circumstances.
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