Utility reports strong growth

French power utility EDF yesterday reported stronger than expected underlying earnings growth for 2007 but said 2008 would be marked by sharply higher investment costs.

The world's biggest single producer of nuclear power also affirmed its interest in the Spanish market, where it has been linked with utility Iberdrola, but EDF Chief Executive Officer Pierre Gadonneix said no decision had been taken.

In a statement, EDF said 2007 earnings before interest, tax, depreciation and amortization rose 5.6 percent to 15.210 billion euros, above the average forecast in a Reuters poll of 11 analysts for 15.062 billion euros.

EDF said it aimed to raise EBITDA by 1 billion euros, or 6.6 percent, by 2010 compared with 2007 but cautioned most of that growth would come after 2008, when it plans to lift investment spending to 10 billion euros from 7.5 billion in 2007.

Chief Financial Officer Daniel Camus told a presentation that EBITDA would grow by less than the 3 to 6 percent rate that EDF had set for the 2006-2008 period, and which the company said it expects to return to in 2009-2010.

At 1006 GMT, EDF shares were 2.3 percent lower at 72.32 euros, underperforming a broadly weaker CAC-40 index of leading French shares.

Agencies

(China Daily 02/21/2008 page16)