France's EDF racks up €18 billion loss as reactors idled

Quantum Commodity Intelligence – French utility giant EDF has filed one of the largest corporate losses ever recorded in France at almost €18 billion ($19.2bn), after struggling to cope with rocketing power and gas prices along with maintenance on nuclear plants, reported France's Le Monde newspaper Friday. 

In particular, the of idling nuclear reactors meant financial disaster for the state-controlled utility, while the fallout from the Ukraine war led to spiralling energy costs that EDF was unable to pass on due to a price cap on energy for French consumers 

Le Monde said EDF struggled with a slump in electricity output in 2022 as it had to idle several of France's 56 nuclear reactors to resolve corrosion problems, while warm dry conditions reduced hydropower output.

Reactors usually provide around 70% of France's electricity needs, but up to a dozen are offline for maintenance, noted Le Monde.

The utility reported a 70% increase in revenues to €143.5 billion, but a record loss of €17.9 billion, which contrasts with a net profit of €5.1 billion in 2021.

The losses were reported as the third largest in French corporate history and the worst for over 20 years, with only former entertainment group Vivendi Universal and communications company France Telecom topping this level.

Spiralling natural gas and electricity costs after Russia's invasion of Ukraine caused huge problems for many European energy providers, including Germany's Uniper which was forced into state control to avoid bankruptcy.

EDF's debt rocketed by €21.5 billion in 2022, reaching €64.5 billion, while the firm said the ballooning debts could be explained by a lower cash flow from operations, along with a €3.15 billion capital increase.

"Our priority right now is improving EDF's financial position," EDF's chief executive Luc Rémont said in a results statement.

Meanwhile, France's transmission system operator, RTE, said this week electricity output in France during 2022 was at its lowest level in the last three decades.