PARIS, July 26 (Reuters) - France's EDF saw first-half profit jump by fifth as it boosted electricity production, but the state-owned utility warned that declines in market prices would weigh on second-half earnings.
Although the world's largest nuclear power plant operator has grappled with a range of problems at its nuclear plants that have hurt output, it was renationalised a year ago and has been able to return a good chunk of its reactors to operation.
It has also added renewable capacity and boosted performance at hyropower projects.
Net income surged to 7 billion euros ($7.6 billion) while earnings before interest, tax, debt and amortisation (EBITDA) climbed 16.1% to 18.7 billion euros.
EDF's electricity production for the first half totalled 259 terawatt-hours (TWh), an increase of 12% from a year earlier. Output from nuclear also rose 12%, to 177.4 TWh.
Nuclear power output in France, excluding output from the new Flamanville 3 reactor, is expected to be at the high end of a range of 314 to 345 TWh for the full year, EDF said.
The company is close to starting the first nuclear reaction at Flamanville 3, and the unit will begin producing power a few weeks later, it added.
The reactor has been delayed by more than a decade with costs soaring from a planned 3 billion euros to 13.2 billion euros as of end-2022.
EDF noted that regional market prices have fallen and warned EBITDA in the second half would decline year on year.
In Britain, EDF is continuing discussions with the newly elected Labour government regarding its Hinkley Point C (HPC) and Sizewell C nuclear projects, CEO Luc Remont told reporters, adding it is "a bit early" to give a date for a final investment decision on Sizewell.
There is still a risk of delays to the HPC schedule, it said, adding that it is exploring financial solutions for the project.
($1 = 0.9216 euros)
Reporting by Forrest Crellin and Benjamin Mallet; editing by Dominique Patton, David Evans and Edwina Gibbs
Source: Reuters