Business News
EDF profits plunge in 2008 as nuclear expansion continues
Feb 12, 2009, 9:44 GMT
Paris - State-owned French energy supplier EDF saw its profits fall by nearly 40 per cent in 2008 as it continued to expand its nuclear energy division abroad, the company said on Thursday.
Profits for last year stood at 3.4 billion euros (4.4 billion dollars), down 39.5 per cent from 2007, EDF said in a press statement.
The company said that part of the downturn was attributable to one-time costs linked to the opening of the French energy market to competition.
Turnover for the year rose by 7.8 per cent, to 64.28 billion euros.
In 2008, EDF expanded its nuclear energy interests by purchasing British Energy for 13.5 billion euros and launching an offer for nearly 50 per cent of the nuclear energy activities of the American utility Constellation Energy for 4.5 billion dollars.
Because of these moves, EDF head Pierre Gaddonneix called 2008 'a major year for EDF's industrial future.' For 2009, he foresees 'a new program of divestments of more than 5 billion euros' to reinforce the company's financial structure and pay off some debts.
However, the company will continue to invest, both in France and abroad, the company said.
Investors were no doubt put off by the plunge in profits and bid EDF shares down by 9.11 per cent, to 32.31 euros, in late morning trading on the Paris Bourse.
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