PARIS (Reuters) – EDF on Thursday posted lower annual profit as the COVID-19 pandemic hit electricity demand and weighed on the French power group’s revenue, but said momentum should recover this year.

EDF’s earnings before interest, taxes, depreciation and amortisation (EBITDA) came in higher than expected despite falling nuclear output in France, helped in part by better hydrological conditions.

It stood at 16.2 billion euros ($19.51 billion), above the average forecast of 15.9 billion euros in a Refinitiv poll of analysts and down 2.7% from a year earlier when stripping out currency fluctuations and disposals or acquisitions.

EDF, which is trimming costs to cope with the COVID-19 crisis, said it was eyeing EBITDA of more than 17 billion euros in 2021, or a rise of at least 5%.

The utility, which is nearly 84% owned by the French state, has been in the spotlight over an ambitious reform plan outlined by President Emmanuel Macron, but which is now bogged down in negotiations with Brussels.

The reform, dubbed Project Hercules, aims to separate the debt-laden nuclear power business from the rest of EDF’s assets, and is linked to an overhaul of the price at which the firm sells on that energy to third-party providers.

Chairman and Chief Executive Jean-Bernard Levy told reporters on Thursday that the group’s forecasts were based on the existing regulatory framework.

EDF revenue reached 69 billion euros for the full year, down 3.4% from 2019 and below the average analyst estimates of 70.5 billion euros.

Net profit was hit by charges including tax litigation in France and some costs linked to its Flamanville 3 plant, plunging 87.4% to 650 million euros.

($1 = 0.8304 euros)

(Reporting by Sarah White and Benjamin Mallet; Editing by Christian Schmollinger and Sherry Jacob-Phillips)