French utility EDF sees profits stagnate in first half of 2009

Jul 30, 2009, 8:36 GMT

Paris - French energy supplier EDF said Thursday it had earned profits of 3.12 billion euros (4.4 billion dollars) in the first half of 2009, almost identical to the same period last year.

Not counting one-time charges and benefits, profits actually fell by 5.5 per cent, to 2.93 billion euros, the company said in a statement.

Turnover rose by 8.2 per cent, to 34.9 billion euros, while operating results were up by 14.6 per cent, to 6.78 billion euros.

EDF head Pierre Gadonneix said the results 'illustrate the pertinence of the group's growth strategy.'

In addition to expanding its involvement in the construction of third-generation European pressurized nuclear reactors (EPR), the company has also invested heavily in the nuclear energy sector in the United States and Britain.

EDF is also expanding its solar and wind energy activities, with its New Energies division reporting profits of 41.8 million euros for the first half of 2009, up by 53.7 per cent.

Gadonneix recently said he wanted to raise electricity rates for private customers in France by 20 per cent over three years, a request that caused an uproar in political circles.

The daily Les Echos reported Wednesday that the Ministry of Ecology and Energy has asked for a 1.9 per cent rise in electric rates, which was immediately denied by Finance Minister Christine Lagarde.

But French households pay among the lowest electricity charges in the European Union, so a hike in rates seems inevitable. Lagarde said a decision would be taken in mid-August.