EDF Confirms Full-Year Targets as Sales Advance 8.3%

By Tara Patel

Nov. 12 (Bloomberg) -- Electricite de France SA, the world's biggest operator of nuclear reactors, confirmed its full-year financial target after third-quarter sales climbed 8.3 percent on higher power prices.

Sales rose to 13.4 billion euros ($16.8 billion) from 12.3 billion euros a year earlier, the Paris-based operator of France's 58 nuclear plants said today in a statement. Nine-month revenue was 45.6 billion euros, in line with the median estimate of 45.3 billion euros in a Bloomberg survey of analyst.

``The sales figures were very good,'' said Amandine Gerard, who helps oversee $5.1 billion at KBL Richelieu Gestion in Paris. ``Utilities in general are under pressure because of their need for credit for big projects. The fact that EDF has confirmed its targets reassured the market.''

The state-controlled utility said full-year profit excluding non-recurring items ``will not increase'' because of rising spending. It kept a target for growth of about 3 percent in earnings before interest, tax, depreciation and amortization.

EDF, which holds stakes in utilities in Italy, Germany and the U.K., has been able to sell power at higher prices in those markets than in France, where the government caps rates. The company has said earnings this year will be crimped by higher fuel and equipment costs and repairs at power plants.

EDF rose as much as 5.2 percent in Paris trading and was up 80 cents at 48.30 euros as of 11:43 p.m. local time. The stock is down 41 percent this year.

Full-Year Forecast

``EDF has not been significantly impacted by the current financial crisis,'' EDF said, adding that funding for a planned takeover of British Energy Plc is ``secured'' and that it has ``required liquidities to meet its needs.''

Excluding France, European sales rose 20 percent to 6.57 billion euros in the quarter as power prices rose in Germany and Italy. Nine-month sales at its U.K. unit, EDF Energy, fell 7.1 percent to 5.7 billion euros, as the European common currency strengthened against the pound, offsetting rate increases.

EDF sold less wholesale power in France because of greater consumer demand as temperatures in the quarter were ``closer to seasonal norms'' and more plants were stopped for maintenance and unplanned outages. Government-set rates were raised on Aug. 15 for households by 2 percent and by as much as 8 percent for large industrial users.

Construction

The utility began construction last year on a new- generation nuclear reactor at Flamanville, France. EDF has also said it will apply to build an atomic unit in New York with Constellation Energy Group Inc. It will seek to build U.K. reactors after completing the 12.5 billion-pound takeover of British Energy. The offer closes on Dec. 5.

Investment spending will rise 10 billion euros this year from 7.5 billion euros in 2007, in part to meet ``increased costs of commodities, energy and equipment,'' EDF has said.

The utilization rate at its reactors fell to 80.2 percent from 83.6 percent in 2006. The utility is aiming to raise it to 85 percent during the next three or four years. Repairs to stream generators at 16 reactors will shave 2 percent off overall availability this year and next, Chief Operating Officer Jean-Louis Mathias said earlier this year.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net