The French energy giant announced new closure dates for nuclear power stations in Lancashire (2024), Teesside (2030) and East Lothian (2030). It said the carbon price floor and capacity market gave it the confidence required to continue to invest in the stations.
The company also signalled confidence in the widely debated future of its new nuclear power station, Hinkley Point C. It said: “Hinkley Point C is a strong project which is fully ready for a final investment decision and successful construction. Final steps are well in hand to enable the full construction phase to be launched very soon.”
Profits were down at the UK arm of company, with underlying operating profit (EBIT) in 2015 of £664m – 15 per cent lower than in 2014 (£783m). EDF said this was a result of the ongoing cost of its investment programme. Meanwhile, profits at a group level plunged 68 per cent, to EUR 1.2 billion (2014: EUR 3.7bn), and the company cut its dividend from 1.25 to 1.1 euros per share.
The quoted EBIT figure for the UK does not include a one off impairment charge of £796m relating to the reduction in value of gas and coal generation and storage assets, due to “challenging market conditions”.
EDF Energy chief executive Vincent de Rivaz said: “Our continuing investment, our expertise and the professional relationship we have with the safety regulator means we can safely prolong the operating life of our nuclear power stations. Their excellent output shows that reliability is improving whilst their safety and environmental performance is higher than ever.
“In today’s extremely challenging market conditions, our belief that government policy will be maintained and strengthened gives us the confidence to invest in our nuclear stations. This gives customers the best value low carbon electricity available.”
The company will pay £120m in UK corporation tax for 2015.