EDF has recorded a record loss in 2022 amounting to 17.9 billion euros, compared to a profit of 5.1 billion euros in 2021. Despite a 70% growth in revenues to 143.5 billion euros, the company has experienced setbacks due to disruptions in its nuclear fleet and its forced contribution to the French “tariff shield”.
A black year for EDF
In 2022, the company recorded one of the most massive losses in the history of France, behind France Télecom (20.7 billion) and Vivendi Universal (23.3 billion) twenty years ago. The war in Ukraine has led to a spike in gas and electricity prices, which has added to the pressure. EDF therefore had to sell more electricity at low prices to help the French, which accentuated its loss. The stress corrosion crisis, a problem of micro-cracks in pipes, has also contributed to the decrease in EDF’s nuclear production.
Disastrous results for the electricity giant
Although EDF’s revenues have increased by 70 percent in 2022 due to higher energy prices, the company has been struggling with its nuclear plants and soaring electricity prices on the markets. Customers returned to EDF in large numbers, but the company was unable to produce enough energy. To meet the demand, EDF had to buy electricity at high prices on the markets.
Increased pressure to turn the company around
The government immediately put pressure on EDF to restore its energy production levels. The Ministers of Economy Bruno Le Maire and Energy Transition Agnès Pannier-Runacher have stated that the recovery of EDF’s finances will be achieved primarily by increasing the volume of production. The French government also wants the project for new EPR reactors to be prepared, which will be supported by Emmanuel Macron.
