The logo of Electricite de France (EDF) is seen in front of electrical pylons at the Tricastin nuclear power plant site in Saint-Paul-Trois-Chateaux, France, November 21, 2022. REUTERS/Eric Gaillard/File Photo
Debt-laden power giant EDF has signed for a total of 2.2 billion euros ($2.28 billion) in new loans maturing in three years, provided financial breathing space as reduced nuclear output weighs on its books.
"This transaction does increase the financial flexibility of the group for the coming years," an EDF statement said, adding that the loans were concluded with a group of six banks and will be drawn in December 2022.
The French company said in October that it expected a hit of about 32 billion euros to full-year core earnings from lower nuclear power production - its sixth profit warning this year.
EDF, which is in the process of being nationalised by the French government, lowered its 2022 nuclear output target again on Nov. 3. The company blamed the reduced target on maintenance delays because of worker strikes and extended maintenance outages of four reactors affected by corrosion.
The group's finances have also been pressured by the government's decision to force the utility to sell an increased amount of nuclear power below market prices to tackle inflation.
The company will also become the biggest contributor of a new windfall tax that is expected to cost the utility 5 billion euros next year, according to a newspaper report.
($1 = 0.9639 euros)
