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EDF Sees Earnings Growth in 2020

Francois de Beaupuy

(Bloomberg) -- Electricite de France SA said higher retail power prices will drive further profit growth this year after 2019 earnings beat estimates.

Earnings before interest, taxes, depreciation and amortization may rise as much as 7.8% from the 16.7 billion euros ($18.1 billion) it reported for last year, the state-controlled utility said Friday.

Key Insights

Last year’s results reflect higher prices in France and the U.K. and a capital gain from the sale of renewable assets, which offset prolonged maintenance shutdowns and unplanned halts at EDF’s aging nuclear plants.In 2020, the company expects to benefit from an increase in French regulated electricity tariffs and a potential rebound in domestic nuclear output.Yet mild first-quarter temperatures and the retirement of two reactors at Fessenheim could hurt profit margins. That makes it crucial to maintain cost savings as EDF struggles to cover hefty capital-spending commitments with cash flow.To keep a lid on debt, EDF has pledged to sell as much as 3 billion euros of assets in the two years to 2020, adding to a previous four-year divestment program. The target includes the sale of shares in CENG, decided on last year and potentially completed in 2021.

Know More

EDF sees 2020 Ebitda in the range of 17.5 billion to 18 billion euros, while analysts estimate 17.6 billion euros.The company expects French nuclear production to be between 375 terawatt-hours and 390 terawatt-hours this year, compared with 379.5 terawatt-hours in 2019.EDF will pay a 2019 dividend of 48 euro cents a share.For more detailed earnings data, click here.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net

To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Amanda Jordan

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