EDF Raises 2013 Targets Over Strong Results in France and Italy

France’s EDF reported a 6.9% growth in the EBITDA for the first six months of the current year, in the light of strong results of its nuclear fleet and renegotiations of Edison’s contracts in Italy. As a result, EBITDA reached €9,698 million, registering a 6% increase compared with the first half of 2012.

“Growth was driven by France (organic growth of 6.6%) due to good operating conditions characterised by cold weather and favourable market prices as well as a sharp increase in hydropower output. These results were also driven by Italy with good performance of the electricity business and the favourable outcome of arbitration of gas contracts in Algeria, which was announced in April 2013, as well as the new renegotiation of the Qatari contract in July 2013,” reads the note released on Tuesday. 

EDF, Europe’s top electricity producer, gained ground in the Paris Stock Exchange in the last months (45% this year), after the French government announced it is working on the biggest increase in power prices in at least a decade.

EDF raised its 2013 operating performance targets from a range of 0-3% to at least 3% growth in EBITDA, while reiterating its financial targets. EDF expects a net financial debt/EBITDA of 2x-2.5x. 

EDF, the world’s biggest producer of nuclear-powered electricity, also announced on Tuesday it would pull out of nuclear production in the US, explaining that the advent of shale gas changed the cards on the table, reshaping American energy markets and decreasing margins for nuclear operators.