France’s EDF cut its 2022 forecast for French nuclear output for the second time in less than a month to 295-315 terawatt-hours, from 300-330 terawatt-hours. This is expected to add pressure on European power supplies given the existing high energy costs and gas supply shortage. While the change by EDF may cause electricity prices to jump in Europe, it would also add pressure on EDF’s earnings that are currently already undermined by the French government introducing a price cap. When the price caps were introduced, EDF said that the measures may cost it about €7.7bn ($8.8bn), which led to rating actions by all three rating agencies including a downgrade from Fitch. In January, EDF cut its 2022 French nuclear production forecast by about 9% to the lowest in 30 years.
EDF’s bonds were lower with its EUR 3.375% Perp down 1 point to 94.34, yielding 4.2%.
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