EDF has reported record profits of 11.4 billion euros in 2024, driven by a recovery in nuclear and hydroelectric production, despite falling electricity prices. CEO Luc Rémont announced a significant dividend for the state and outlined plans for increased nuclear output in 2025. The company is also focused on transitioning customers to electric solutions and is negotiating financing for its EPR2 nuclear reactor program while facing challenges with projects in the UK and US.
EDF Reports Record Profits Amidst Production Recovery
The prominent French energy company EDF has experienced a remarkable turnaround in its electricity production, announcing unprecedented profits for 2024 as it gears up for a challenging 2025. The group achieved impressive profits amounting to 11.4 billion euros last year, driven by significant growth in both nuclear and hydroelectric output, despite a downturn in electricity prices.
Strategic Moves and Future Outlook
During a recent press conference, CEO Luc Rémont highlighted the company’s ‘exceptional operational and commercial performances,’ which have enabled it to achieve robust financial outcomes. For the first time in over a decade, the state, EDF’s sole shareholder, will receive a dividend of 2 billion euros.
In 2024, EDF’s electricity production surged to 520 terawatt-hours (TWh), marking an 11% increase, including 361.7 TWh generated from nuclear sources. This recovery follows the dismal year of 2022, characterized by unprecedented low production levels due to corrosion issues in nuclear facilities and drought conditions impacting hydroelectric plants.
However, the company faced challenges due to a decline in market prices for electricity, resulting in a 15.7% drop in revenue to 118.7 billion euros and an 8.5% decrease in EBITDA, which still reached a historic high of 36.5 billion euros, according to CFO Xavier Girre.
As EDF navigates the aftermath of a ‘very high intensity’ year, which included the commissioning of the Flamanville EPR nuclear reactor, the group is looking forward to a busy financial and industrial agenda in 2025, while managing a significant debt load of 54.3 billion euros. The Flamanville reactor, connected to the grid in December 2024, is expected to reach full capacity by next summer.
With an emphasis on expanding its nuclear production, EDF aims for an output between 350 and 370 TWh in 2025, with similar projections for the following years. The company is also focused on attracting new customers, particularly in the electric vehicle market and among large industries aiming to transition to greener energy solutions.
CEO Rémont stated, ‘Our primary challenge at EDF is to encourage customers to prefer electricity over fossil fuels,’ aligning with France’s goal to phase out these energy sources. He emphasized the importance of adapting electricity consumption patterns, which have stagnated at levels comparable to two decades ago.
Looking ahead, EDF is engaged in crucial discussions with the state concerning the financial aspects of the ambitious EPR2 nuclear reactor program, anticipated to cost under 100 billion euros. A financing strategy, which may include a zero-interest loan from the government, is expected to be finalized soon.
Simultaneously, EDF is working on its two EPR2 projects in the UK, Sizewell C and Hinkley Point C, which are experiencing delays and cost overruns, leading to an impairment of 800 million euros in its financial reports. Additionally, in the U.S., EDF faces challenges related to offshore wind ventures, with plans to take a 900 million euro impairment on its joint project with Shell, Atlantic Shores, due to political opposition from the Trump administration.