France's EDF says hot summer could hit nuclear output, shares fall
Reuters
Published Jul 05, 2022 18:46
PARIS (Reuters) - France's EDF (EPA:EDF) might be forced to cut nuclear output further because of expected prolonged hot temperatures over the summer months, an executive told a briefing on Tuesday, prompting a sharp fall in the company's shares.
EDF's shares ended down 7.5% on the Paris stock market, underperforming the Stoxx Europe 600 Utilities index, which lost 2.03%.
"We have a peculiar year due to the drought that has started early, especially in southeastern France. But there is generally a little bit less water available this year," Catherine Laugier, Environment Director at EDF, told a news conference.
France is already grappling with reduced electricity generation because of unexpected maintenance at its aging nuclear reactors.
EDF faces the prospect of having to reduce output because of insufficient river water, which is often used for cooling nuclear reactors before being returned to the river at a higher temperature.
Regulations are in place to limit reactor production during times of exceptional heat and low water levels to prevent the process from damaging local wildlife.
"We've had some production cuts between end May and early June. That was indeed pretty early (...) And there are some global evaluations suggesting (...) this might be a very long summer and the levels could be impacted in September," Laugier said.
Since the start of the year, EDF has lost 20.6% of its value, well below a 12.9% sector-wide decline.
France's heavy reliance on nuclear energy means it is less dependent on Russian energy supplies than most of it European peers.
However, it too is working on contingency plans in case of a widespread shortage of energy should Russia restrict supplies further and top bosses at energy companies have urged individuals and businesses to reduce power use.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.