By Tara Patel
Nov. 12 (Bloomberg) -- Electricite de France SA, the world's biggest operator of nuclear reactors, said third-quarter sales rose 8.3 percent on higher prices for power.
Sales increased 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 reactors said today in a statement. Revenue for the first nine months of the year was 45.6 billion euros, compared with the median estimate of 45.3 billion euros of analysts surveyed by Bloomberg News.
The state-controlled utility said full-year net profit excluding non-recurring items ``will not increase'' because of a large spending plan. EDP maintained its target for growth in 2008 earnings before interest, tax, depreciation and amortization of around 3 percent.
``EDF has not been significantly impacted by the current financial crisis,'' the utility said, adding that funding for a planned takeover of British Energy Plc is ``secured.''
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 rates are capped by the government. This year's earnings will be crimped by higher fuel and equipment costs and repairs at some power plants, the company has said.
The utility's earnings are capped on the domestic market by government-set rates, which were raised Aug. 15 for households by 2 percent and as much as 8 percent for large industrial users. The previous increase was a year earlier.
Company Rates
Profit may also be reduced by the government's plan to prolong until July 2010 its system of regulated power rates for businesses. The program is aimed at shielding companies from rising energy costs by allowing businesses that opted for free- market power rates to come back to lower, government-set rates.
EDF set aside 470 million euros for the system in 2006 and 248 million euros in 2007, according to its annual report. The French state holds an 84.8 percent stake in the company.
The utility began construction last year on a new- generation nuclear reactor at Flamanville, France. The company has also said it would apply to build a new atomic unit in New York with Constellation Energy Group Inc. and is planning to build reactors in the U.K. after making a 12.5 billion-pound ($19.3 billion) offer to buy British Energy Group Plc. That offer closes Dec. 5.
EDF has said it plans to raise investment spending to 10 billion euros this year, compared with 7.5 billion euros in 2007, in part to meet ``increased costs of commodities, energy and equipment.''
The utilization rate of the utility's reactors was 80.2 percent last year compared with 83.6 percent in 2006. The utility is aiming to raise the rate 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 has said.
To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net
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