EDF has reported a net profit of €10bn ($10.75bn) for 2023, compared with a loss of €17.9bn in 2022. This was mainly attributed to increased nuclear power output in 2023 as reactors closed for repairs due to stress corrosion returned to operation. EDF, which was renationalised in 2023, reported sales of €139.7nb and earnings before interest, tax, depreciation and amortisation (EBITDA) of €39.9bn.
EDF Chairman and CEO Luc Rémont said 2023 “marks the return of the company’s operational performance at a better level, after a year of industrial difficulties and exceptional regulation unfavourable effects in 2022”. He added that 2023 “saw the start of key actions for the company’s future, with an intensive focus on change and efficiency improvements so we can remain the leader in carbon-free, competitive electricity production that is available at all times.”
According to a company statement, "In France, the 41.4TWh increase in nuclear power output to 320.4TWh, in the upper end of the range announced for the year, illustrates EDF’s very good operational performance. This turnaround was achieved by good management of the stress corrosion repairs and reactor outages, thanks to efficiency and reactivity of the teams to improve the fleet availability." EDF confirmed it was aiming for a target of 315-345 TWh for 2024 and 335-365TWh for 2025 and 2026.
The company said 46 reactors were online at the beginning of January 2024 with a total capacity of 50 GWe. “Fifteen of the 16 reactors most sensitive to stress corrosion were repaired by end-2023, and the last one will be repaired during its 10-year inspection which starts in February 2024. Additionally, the 2023 programme of checks on welds repaired during reactor construction has been completed."
As to the EPR reactor under construction at unit 3 at the Flamanville NPP, which is now some 10 years behind schedule and significantly over budget, EDF said the tests to requalify the entire installation had been successfully completed, in preparation for fuel loading in March 2024.
On the Hinkley Point C nuclear power station EDF is constructing in Somerset, England, EDF said the new schedule for the start of power generation at unit 1 included three scenarios: 2029 (around which the project is organised), 2030 (base case) and 2031 (unfavourable scenario). Revised completion cost of £31-34 bn ($39-42.8bn) in the unfavourable scenario would entail an additional cost of £1bn. Previously, production by unit 1 was expected to start in June 2027 and the completion cost was £25-26bn. In addition, an impairment of €12.9bn was booked, mainly relating to Hinkley Point C assets but also including EDF Energy goodwill, partly as a result of ageing plants. EDF noted that construction at Hinkley Point C was being financed by the shareholders on a voluntary basis, and that EDF is currently financing all costs.
However, Remont noted that EDF is currently in talks with the UK government over the “long-term financing” of Hinkley Point Cas well as for the planned Sizewell C NPP. “Our goal is to find a solution that meets the interests of parties for the continuation of the UK nuclear programme,” he said. “We’re having talks with the British government and other investors to set up the financing of Sizewell C” in order to reach a final investment decision. Remont confirmed that EDF will not hold more than a 20% stake in the project. Earlier, French Finance Minister Bruno Le Maire had said the UK should bear more of the costs of the projects. “There needs to be an equitable sharing of costs,” he told reporters at an event marking the 50th anniversary of the International Energy Agency.
With respect to EDF's UK nuclear fleet, which provides about 13% of UK electricity demand, the end of year report said output of 37 TWh was 15% lower than in 2022. This was due to station closures and statutory outages. EBITDA was £3.4bn ($4.3bn) and net investment £3.6bn. EDF intends to invest an additional £1.3bn in its five NPPs over the next three years to keep output stable after several years of decline as a result of the closure of older stations.
