EDF in its financial woes, extends the life of four nuclear reactors

EDF extends life of four nuclear reactors  Final decision on investment in Hinkley Point still pending, with analysts and activists casting doubt on the project, Guardian, Sean Farrell 16 Feb 16, EDF plans to extend the life of four nuclear power plants in the UK and has said it is close to announcing a decision on its investment in two new reactors at Hinkley Point.

The French energy company said the lives of the Heysham 1 and Hartlepool plants would be extended by five years until 2024, and the closure dates of Heysham 2 and Torness will be delayed by seven years to 2030………

EDF, which is 85% owned by the French government, announced the extensions as it reported a 68% plunge in profits last year and cut its annual dividend. The company, which has been hit by falling power prices, said net debt increased by €3.2bn (£2.5bn) to €37.4bn.

The fall in EDF’s annual net profit to €1.19bn was caused by a tripling of provisions, asset writedowns and other one-off items to €3.64bn. EDF surprised markets by cutting its dividend to €1.10 a share after paying €1.25 for the previous three years.

But the company restated the appeal of the £18bn Hinkley Point project in Somerset. EDF has delayed deciding on the plan due to funding problems, according to reports in France…….

Paul Dorfman of the UCL Energy Institute said EDF’s financial position cast doubt on the prospects for Hinkley Point. “Unfortunately, with the best will in the world, it may just not happen,” he told the BBC’s Today programme. “EDF shares have crashed to half their value a year ago; the budget for Hinkley alone is bigger than EDF’s entire market value.”

Greenpeace said EDF and the French government were in disarray over the cost and risk of the Hinkley project.

Doug Parr, Greenpeace UK’s policy director, said: “EDF’s accounts show growing debts and falling earnings. Hinkley is a bad investment and most people with an ounce of financial acumen have now come to realise this. George Osborne stands alone in defending Hinkley’s honour.” http://www.theguardian.com/business/2016/feb/16/edf-extends-life-of-four-nuclear-reactors-hinkley-point-decision

February 17, 2016 - Posted by Christina Macpherson | business and costs, France, UK