Electricite de France (EDF), the French state-owned utility company, announced that it has returned to profitability in the first half of 2023, primarily due to higher electricity selling prices. The company reported a profit of €5.81 billion ($6.44 billion), a significant improvement compared to a loss of €5.29 billion in the same period last year. EDF’s sales also saw a notable increase, rising by 14% to €75.5 billion.
The rise in profit can be attributed to the surge in earnings before interest, taxes, depreciation, and amortization (EBITDA), which reached €16.11 billion, up from €2.67 billion in the previous year. The company credited higher electricity prices during the first half of 2023 for the boost in EBITDA. However, EDF did mention that network losses-related costs have increased due to market prices, and operating expenses have risen due to inflation.
EDF estimated that the favorable pricing environment in France had an overall pricing effect of around €10 billion. Chief Executive Luc Remont expressed his satisfaction with the company’s operational performance, calling it a positive outcome following a challenging 2022 marked by industrial difficulties and unfavorable regulatory effects.
