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ENERGY

EVN faces massive losses from Moscow

Austrian energy provider EVN has announced losses of nearly €300 million for the 2013/2014 financial year.

Published: 5 September 2014 09:54 CEST
EVN faces massive losses from Moscow
Photo: EVN

The Lower Austria-based listed company gave its investors an unpleasant surprise on Thursday with a renewed profit warning.  This is primarily due to a €190 million loss from an investment in a waste incineration plant in Moscow.

Early in July, EVN had already issued a profit warning related to electricity price fluctuations in two markets where it is active, Bulgaria and Macedonia, leading to losses of almost €261 million.  Combining those losses with the Moscow operation completely wipes out the net profit of €115 million from its Austrian operations last year.

As many of the write-downs are non-cash, they should have no effect on the expected dividend payments, the company emphasized .

Electricity customers in Lower Austria are not affected by the profit warning, company spokesman Stefan Zach said. EVN will reduce, as announced, the price of electricity in Lower Austria by ten percent on October 1st.

Furthermore, EVN remains committed to the investment of one billion euros in the security of supply in Lower Austria over the next four years.

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

Published: 16 February 2024 10:45 CET
France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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