EDF posts 17% drop in first-half profit on low power prices

By Forrest Crellin

PARIS (Reuters) -France's EDF posted a 17% drop in first-half core profit on Thursday, after low European power prices eroded earnings from higher nuclear power output.

The state-owned utility said earnings before interest, taxes, depreciation and amortisation (EBITDA) for the six months to end-June came to 15.5 billion euros ($18.24 billion), down from 18.7 billion a year earlier.

Net debt stood at 50 billion euros, down from the 54.3 billion euros recorded at the end of last year.

Low power prices are impacting profitability at Europe's leading nuclear power producer as it prepares to build six new reactors over the next 15 years.

Prices have continued to drop from highs hit in 2022 and 2023, with weak industrial demand and higher renewable energy generation pushing prices below the French energy regulator's estimated cost of operating a nuclear plant.

EDF warned in February that its EBITDA would fall by as much as 9 billion euros this year due to weaker prices.

The company will provide a cost estimate for the new plants by the end of this year, CEO Bernard Fontana told reporters, with a final investment decision to be taken in the second half of 2026.

EDF added in a statement that with new bond issues of around 7.4 billion euros and the decrease in interest rates and short-term debt, financing costs were "under control".

($1 = 0.8498 euros)

(Reporting by Forrest Crellin; Editing by Kirsten Donovan)