France's EDF lowers 2018 earnings, cash flow guidance

PARIS (Reuters) - France's EDF on Monday lowered its 2018 earnings and cash flow foreast due to lower expected power consumption, lower availability of some of its nuclear reactors early 2018 and a drop in capacity compensation in Britain.

The state-controlled power utility lowered its target for 2018 core earnings before interest, tax, depreciation and amortisation (EBITDA) to between 14.6 and 15.3 billion euros from at least 15.2 billion euros.

It also lowered its long-held forcast to be cash-flow positive after dividends in 2018 and said it now aimed for its cash flow to be slightly positive or close to balance.

This forecast, like the previous one, still excludes spending on its Linky smartmeters, as well as new developments and asset disposals.

 

It also assumes a discount rate on nuclear provisions of 4.1 percent for 2017 and 3.9 percent for 2018 and excludes the interim dividend for 2018, which will be decided in the second half of 2018.

Despite the lower forecast for 2018, EDF said that compared to 2017, EBITDA would rebound significantly, due to an expected increase in nuclear and hydro output in France, the rise in wholesale power prices in Europe and its cost-cutting plan.

EDF shares fell by over 5 percent at the market open.

(Reporting by Geert De Clercq; Editing by Dominique Vidalon)