EDF Shares Fall Sharply After It Lowers 2018 Guidance

By Pietro Lombardi Features Dow Jones Newswires

Shares of France's power utility Electricite de France SA (EDF.FR) fell sharply on Monday after the company lowered its financial targets for 2018 as it faces "unfavorable developments" in France and the United Kingdom.

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EDF said it still forecasts a "significant rebound in ebitda,"--earning before interest, taxes, depreciation and amortization--in 2018 compared with 2017. However, the performance is now expected to be weaker than previously estimated. EDF said it now expects a 2018 ebitda of between EUR14.6 billion and EUR15.3 billion. The previous target was at least EUR15.2 billion.

Shares of EDF trade down 9% at EUR10.70.

The company said there are several headwinds, including "the expected erosion of electricity consumption in France," the "lower availability of some nuclear reactors at the beginning of 2018" and "the drop in the capacity compensation in the United Kingdom."

The company also revised its target for the net financial debt/ebitda ratio, to "below or equal to 2.7x" from below of equal to 2.5x, and cash flow, now expected "slightly positive or close to balance" from greater than or equal to zero.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

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(END) Dow Jones Newswires

November 13, 2017 05:52 ET (10:52 GMT)