Latest news with #BernardFontana
Reuters
24-07-2025
- Business
- Reuters
EDF posts 17% drop in first-half profit on low power prices
PARIS, July 24 (Reuters) - France's EDF posted a 17% drop in first-half core profit on Thursday, after low European power prices eroded earnings from higher nuclear power output. The state-owned utility said earnings before interest, taxes, depreciation and amortisation (EBITDA) for the six months to end-June came to 15.5 billion euros ($18.24 billion), down from 18.7 billion a year earlier. Net debt stood at 50 billion euros, down from the 54.3 billion euros recorded at the end of last year. Low power prices are impacting profitability at Europe's leading nuclear power producer as it prepares to build six new reactors over the next 15 years. Prices have continued to drop from highs hit in 2022 and 2023, with weak industrial demand and higher renewable energy generation pushing prices below the French energy regulator's estimated cost of operating a nuclear plant. EDF warned in February that its EBITDA would fall by as much as 9 billion euros this year due to weaker prices. The company will provide a cost estimate for the new plants by the end of this year, CEO Bernard Fontana told reporters, with a final investment decision to be taken in the second half of 2026. EDF added in a statement that with new bond issues of around 7.4 billion euros and the decrease in interest rates and short-term debt, financing costs were "under control". ($1 = 0.8498 euros)
Time of India
23-07-2025
- Business
- Time of India
France's EDF to withdraw from some overseas projects, cut jobs
France's EDF is cutting its headcount overseas and scrapping bids on some nuclear projects abroad as it focuses on a major construction programme at home under new CEO Bernard Fontana , said two sources familiar with the matter. France, once a global leader in nuclear energy and Europe's largest nuclear power producer, is pulling back at a time of global calls for nuclear expansion , opening the door to new players as high costs and design issues hurt its ability to compete internationally. Fontana was appointed in April to take over the state-run utility after the government became increasingly frustrated with EDF's slow progress in revamping the French nuclear fleet. The new chief executive told a parliamentary hearing on his nomination that he would focus on developing the company's domestic nuclear projects rather than its international business, which employs hundreds of people and has previously built reactors in China, Finland and Britain. He has outlined changes to the overseas business in recent weeks, said the sources, including pulling back from some bids to build reactors outside Europe. The company will focus on tenders for nuclear projects in the Netherlands, Sweden and Finland, where it has a higher chance of winning the bids, said an industry source familiar with the plans. It will also de-prioritise projects in Poland, India, Canada and elsewhere outside Europe, the person said. Reducing its international footprint will allow it to cut costs and redirect people to higher-priority projects, said another industry source familiar with the situation. EDF's recent international projects have faced long delays and cost overruns. Last year it lost out to South Korea's KHNP in a bid for two new reactors in the Czech Republic. Fontana will also reduce headcount on the international sales team, said the sources, with one saying there are plans to cut about 60 jobs, including 10 managers. No decision has been made, EDF said. The group continues its international activities while remaining attentive to the profitability of its commitments, the company said. Europe has always been its first priority and it is focusing on strengthening its European supply chains, a spokesperson for the company said. "The new French nuclear programme is the group's priority," said an official in Prime Minister Francois Bayrou's office. President Emmanuel Macron announced plans in early 2022 for six new French reactors to replace ageing plants and secure future energy supplies, with costs estimated at 67 billion euros ($78.7 billion), according to a media report last year. The company is heavily indebted, however, after expensive repairs to its nuclear fleet in recent years. EDF is also looking to sell some of its renewable energy assets in North America and Brazil. The company's subsidiaries Framatome and Arabelle, which produce reactor parts, will continue to bid to supply international projects, such as the AP 1000 in Canada, one of the sources added.
Reuters
22-07-2025
- Business
- Reuters
Exclusive: France's EDF to withdraw from some overseas projects, cut jobs, sources say
PARIS, July 22 (Reuters) - France's EDF is cutting its headcount overseas and scrapping bids on some nuclear projects abroad as it focuses on a major construction programme at home under new CEO Bernard Fontana, said two sources familiar with the matter. France, once a global leader in nuclear energy and Europe's largest nuclear power producer, is pulling back at a time of global calls for nuclear expansion, opening the door to new players as high costs and design issues hurt its ability to compete internationally. Fontana was appointed in April to take over the state-run utility after the government became increasingly frustrated with EDF's slow progress in revamping the French nuclear fleet. The new chief executive told a parliamentary hearing on his nomination that he would focus on developing the company's domestic nuclear projects rather than its international business, which employs hundreds of people and has previously built reactors in China, Finland and Britain. He has outlined changes to the overseas business in recent weeks, said the sources, including pulling back from some bids to build reactors outside Europe. The company will focus on tenders for nuclear projects in the Netherlands, Sweden and Finland, where it has a higher chance of winning the bids, said an industry source familiar with the plans. It will also de-prioritise projects in Poland, India, Canada and elsewhere outside Europe, the person said. Reducing its international footprint will allow it to cut costs and redirect people to higher-priority projects, said another industry source familiar with the situation. EDF's recent international projects have faced long delays and cost overruns. Last year it lost out to South Korea's KHNP in a bid for two new reactors in the Czech Republic. Fontana will also reduce headcount on the international sales team, said the sources, with one saying there are plans to cut about 60 jobs, including 10 managers. EDF declined to comment. "The new French nuclear programme is the group's priority," said an official in Prime Minister Francois Bayrou's office. President Emmanuel Macron announced plans in early 2022 for six new French reactors to replace ageing plants and secure future energy supplies, with costs estimated at 67 billion euros ($78.7 billion), according to a media report last year. The company is heavily indebted, however, after expensive repairs to its nuclear fleet in recent years. EDF is also looking to sell some of its renewable energy assets in North America and Brazil. The company's subsidiaries Framatome and Arabelle, which produce reactor parts, will continue to bid to supply international projects, such as the AP 1000 in Canada, one of the sources added. ($1 = 0.8516 euros)
Yahoo
17-07-2025
- Business
- Yahoo
EDF mulls stake sale for North American and Brazilian renewables
French utility Electricité de France (EDF) is exploring options to attract capital for its North American and Brazilian renewables divisions, including the potential sale of stakes of up to 50%. An EDF spokesperson confirmed on Wednesday 16 July 2025 that the company is considering various ways to bring in capital, as reported by Reuters. The EDF power solutions spokesperson stated: "We are studying the possibility of opening the capital of some of our subsidiaries to partners.' The announcement follows a Bloomberg report which suggested that a stake sale in EDF's North American operations might generate €2bn ($2.32bn). EDF CEO Bernard Fontana is seeking financing to support the construction of six new nuclear reactors as well as renewable projects in France to decrease the country's dependence on fossil fuels. He has indicated that asset sales are under consideration as one potential route for raising necessary funds. Fontana has previously expressed his commitment before lawmakers towards prioritising domestic nuclear projects. With France relying heavily on an ageing fleet of 57 nuclear reactors for electricity production, there is a pressing need to strengthen long-term power generation capabilities. EDF has been searching for external funding sources for two major UK-based nuclear reactor projects. In 20242, the utility invested €22.4bn, primarily in maintaining and upgrading France's 57 nuclear plants and power grids, and building two UK reactors, with only 12% of capital expenditure allocated to renewables. Early in his second term, which began in January 2025, US President Donald Trump signed an executive order aimed at repealing or altering tax credits for solar and wind projects, citing concerns about reliability and cost-effectiveness compared with other energy sources. In February 2025, EDF incurred an impairment of €934m on its Atlantic Shores offshore wind farm project, a joint venture with Shell located off the US state of New Jersey. The project's development permit was revoked in March. In June, EDF announced a £1.1bn ($1.49bn) investment in the UK's Sizewell C nuclear project. This investment will secure a 12.5% stake for EDF in Sizewell C, and create thousands of jobs in the UK. "EDF mulls stake sale for North American and Brazilian renewables" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
08-07-2025
- Business
- Reuters
EDF promotes nuclear executives to board ahead of new builds
PARIS, July 8 - France's state-owned EDF has appointed several new directors to its board and will reorganise the group's operations in anticipation of its plans to build six new nuclear reactors and increase investments in hydropower, it said on Tuesday. "This evolution aims to strengthen the Group's industrial performance in support of the revival of nuclear power and hydropower ... We must organise ourselves to better define and deliver on our commitments over the long term," EDF CEO Bernard Fontana said in a statement. Xavier Gruz, EDF's nuclear programme director, will join the executive committee immediately and propose a strengthened ownership structure for the new nuclear projects, reporting directly to the CEO and chairman. EDF will also soon form a new project management entity meant to accelerate the build out of reactors by streamlining cooperation with industrial partners at the engineering, construction, and supply chain levels. Nicolas Machtou, who currently heads new nuclear projects, will become the board's secretary general beginning in September. Elisabeth Terrail, from EDF's reactor-building business Framatome, and Emannuelle Verger, who heads EDF's hydropower activities, have also been appointed to the board. Fontana, appointed CEO earlier this year, has been tasked with jumpstarting the nuclear ramp-up and is currently seeking ways to bring in money to finance new builds, including possible asset sales. Earlier this year the French government agreed to issue EDF a subsidized loan covering at least half of the construction costs of six new reactors, which were estimated to be around 52 billion euros in 2022. An updated budget is expected by year-end.
