EDF still buzzing despite British hold-up at Hinkley Point

FRENCH energy giant EDF had something to smile about today despite the British hold-up on Hinkley Point, after its shares rose to a two-month high on pleasing results.

The business, 85% owned by the French government, beat analyst estimates by reporting better-than-expected earnings of nearly €9 billion (£7.6 billion), roughly flat on last year.

Net income, a measure of profits, rose 1.3% to €2.97 billion, stripping out exceptional items.

The UK is the biggest market for the company outside France and makes up about 12% of earnings. But it struggled due to challenging market conditions.

Sales slid 17% and earnings dropped by nearly 15%. The company will strengthen controls on costs to combat the fall. A further delay to the C reactor project at Hinkley by the UK government has left many scratching their heads given the public pressure EDF was under to make a decision on the reactor, which will cost £18 billion and be part-funded by Chinese money. Chairman Jean-Bernard Levy said he believed “we can have a lot of confidence in the British government”.

EDF also unveiled a joint agreement with Areva to work together.