EDF expects lower earnings for the full year due to the heatwave and low prices

EDF, the French state-owned utility, announced 'on Friday' that it expects its full-year EBITDA (earnings before interest, taxes, depreciation and amortisation) to be 10% lower than a year ago, as market prices continue weighing on?utility?profits, while successive heatwaves have reduced electricity output.

EDF, France's largest power producer, was hit by successive heatwaves in the summer. Temperatures reached over 40 degrees Celsius. This caused power cuts at nuclear plants as well as a record-breaking drought and wildfires throughout the country.

EDF's Chief Executive Bernard Fontana stated that the long shutdown of the Chooz 2 Nuclear Reactor in Northern France due to low rivers levels and the outage at the Golfech 2 nuclear reactor due to hot river temperatures were expected to impact the full-year profits.

He said that the?heatwave' and lack of rainfall also led to a slight drop in water levels at hydroelectric plants.

EDF will adapt its nuclear fleet to higher temperatures in the next decade. EUR8.7 billion has been allocated for this purpose. This includes their 'nuclear, hydroelectric and grid assets.

Fontana stated that "it can cause some arbitrage in the budget, so some might be tempted not to do it. But we maintain the discipline because it's good for the nation."

Kpler data revealed that at the height of heatwave, over 9 gigawatts total capacity were reduced across 12 reactors. This is roughly 15% of 57-reactors fleet.

EDF's net income also dropped 8.7% in the first half of the year, due to lower wholesale electricity prices.

The market has fallen in price for the second year running.

The European power price?has reached its lowest level since January 2026, when the Covid pandemic began. It has only partially recovered compared to the first half of 2025.

EDF sells its power many years in advance, so the recent price drops are just now starting to show up on EDF's balance sheet.

State-owned group also embarks on a massive programme of investment that is expected to cost?over half a billion?euros for the renovation of its power grid and nucleic fleet. Around 70 billion euro are allocated for the development and construction of six nuclear reactors. The first is expected to come online in 2038.

(source: Reuters)