[Lightningrod]

EDF Net Income Tumbles 47% After Outlook Dims for Nuclear Project in U.S.


Electricite de France SA, Europe’s biggest power generator, reported a 47 percent drop in first- half profit on a charge linked to the development of a nuclear reactor in the U.S. and the outlook for low power prices there.

The utility took a provision of 1.1 billion euros (1.44 billion euros) related to its holding in Constellation Energy Group Inc. due to the “less favorable” outlook for power prices for existing power generators and a planned new nuclear reactor at Calvert Cliffs, the Paris-based company said in an e- mailed statement. EDF said building its Flamanville EPR model in France would cost more and is two years behind schedule.

“The U.S. provision is bad news,” Per Lekander, analyst at UBS in Paris, said by e-mailed. Results were also hurt by “poor availability” of nuclear reactors in France and the U.K., he noted.


http://www.bloomberg...ear-delays.html