EDF losses 266,000 UK clients, plans to buy stake in Areva for €2.7bn
French electric utility company EDF said on Thursday it lost 266,000 client accounts in the UK during the first half of the year.
The energy group saw UK sales decrease 4.3% to €5.55bn due to a difficult market environment, hurt especially by a decrease in realised prices for nuclear power.
Despite the weak UK market, EDF managed to grow its earnings before interest, taxes, depreciation, and amortization by 3.6% to €9.1bn. Net income was flat at €2.5bn.
Chairman and chief executive Jean-Bernard Lévy said: "In an overall unfavourable context, and thanks to the commitment of its staff, the Group presents stable results and can reiterate its 2015 objectives as well as its ambition to generate a positive cash flow after dividends in 2018."
Also on Thursday, the company announced its plans to buy between 51% and 75% of Areva, the nuclear and renewable energy group, in a deal valued at up to €2.7bn.
"This new collaboration between EDF and Areva will bring an improved efficiency of our cooperation and increases the chances of success of our major international nuclear projects," Lévy said.
EDF is expected to submit a binding offer during the last quarter of 2015 and plans to close the transaction by the second half of 2016.