French energy giant EDF plans to cut operating costs by €500m up to 2022 and to generate €3bn from asset sales to combat slipping profits, it said today.
EDF reported a fall in net profit in the first half of 2020 due to the corona-virus outbreak.
The company said it planned the asset sales over the period 2020 to 2022 and would keep its net investments stable at around €15bn on average annually until 2022.
Chief executive Jean-Bernard Levy told analysts: “I’m confident that EDF will be able to achieve the additional targets.”
EDF has recently completed a €10bn asset sale programme.
The company’s net income was down 9.6 per cent to €1.3bn in the six months to June, while sales fell during the period by 4.9 per cent to €34.7bn.
“Despite the economic downturn, the impact of the crisis on our main financial indicators remains contained, attesting to the resilience of our group,” Levy said in a statement.
EDF’s earnings before interest, taxes, depreciation and amortisation (Ebitda) took a €1bn hit as of the end of June 2020, mainly due to lower nuclear output, a drop in demand and postponement of work and service activities.
Core earning for the first half of the year were down 1.6 per cent at €8.2bn.
EDF, which withdrew its 2020 and 2021 financial targets in April due to the turmoil caused by the pandemic, said it now expected its Ebitda for 2020 at between €15.2bn and €15.7bn.
EDF’s shares rose three per cent in early trading before slipping 0.4 per cent by 10.30am.