Shares in EDF rose strongly in early trade after the French electricity provider set out ambitious plans for its green energy strategy and cost savings that it hopes will offset declining revenues from nuclear power.
While assest sales helped boost net income in 2017, up 11% to €3.2bn, without these items net income dropped 31% to €2.8bn from €4.1bn in 2016.
Full-year financial highlights
- Earnings before interest, tax, depreciation and amortisation falls 14.8% €13.7bn
- Asset disposals of €6.2bn over 2017 fiscal year
- Wind and solar energy capacity rises 23% to 8.8GW
- Net financial debt €33bn, down €4.4bn on 2016
- Proposed full-year dividend of €0.46
The company said it expected further cuts to operating expenses of €800m in 2018 and targeted underlying earnings of between €14.6bn-€15.3bn. Its asset disposals were expected to raise a further €10bn.
Jean-Bernard Lévy, EDF’s chairman and chief executive (left), said: “In line with our forecasts, the 2017 results demonstrate
EDF’s solidity, once again profitable, in a difficult market context.
"We are beginning an unprecedented acceleration in renewable energies with the launch of EDF’s Solar Plan, at the same time that we are strengthening our commercial initiatives.
"Supported by our staff dedicated to working in the service of the energy transition and by a newly reorganised nuclear industry, EDF now enjoys a solid basis to achieve the rebound expected in 2018."
Investors welcomed EDF's positive outlook and pushed the shares 4.2% higher to €10.56 on the Paris Bourse.
Picture courtesy of EDF website