French power group EDF’s shares fall after new cut to its nuclear output forecast

EDF (PA:EDF) shares fell on Tuesday after the French state-controlled power group – already under pressure from government measures to tackle higher energy bills – made new cuts to its nuclear output projections.

EDF again cut its nuclear output forecast for 2022 to 295-315 terawatt-hours from a previously expected 300-330 terawatt-hours late late on Monday, saying the latest downward revision was linked to ongoing nuclear safety controls.

EDF’s shares were down 3.5% in early session trading.

The stock has lost almost 40% of its value since December when the company announced that corrosion problems forced it to halt some more nuclear reactors.

They also extended their losses earlier this year as the French government ordered EDF to sell more cheap nuclear power to rivals.

EDF is due to send the government a first report on its current safety-related nuclear outages in March, France’s Environment and Industry Transition Minister Barbara Pompili told Franceinfo radio on Tuesday.

“I have asked EDF for an audit because too many reactors are halted and EDF is due to send me a first report on this in March”, said Pompili.

In the interview, the minister also confirmed reports that the state-owned company will buy a France-based turbine unit, worth around one billion dollars, from General Electric (NYSE:GE).

The business, which produces turbines used in nuclear reactors, had belonged to French industrial company Alstom (PA:ALSO) until 2015.

It was now a “logical move” to bring back that business into the portfolio of a French company, added Pompili.