EDF has issued its fifth profit warning of the year after the French power company further reduced its nuclear output forecast, saying lower production would shave €29bn off its core earnings in 2022.
The energy firm said nuclear output estimates will come in at the lower end of its previously announced 280-300 terawatt-hours range, already a 30-year low.
EDF, which is in the process of being fully nationalised, said, as a result, it now expects a 29 billion euro hit to its EBITDA for the year, compared with the 24 billion euro hit forecast made at the end of July.
Nuclear power output in France has fallen to a historic low due to a large number of reactor outages, partly caused by corrosion issues, at a time when Europe is trying to find an alternative to Russian gas supplies.
In an effort to assist citizens with soaring utility bills, the French government announced Wednesday that electricity prices will be capped at 15% next year, lifting a 4% cap in effect this year.
Consequently, EDF said it will review its financial targets for end-2023 once the regulatory details are determined.
Additionally, the utility company confirmed it will produce 300-330 terawatt hours of nuclear power in 2023, well below its yearly average over the last years.