State-owned French energy giant Electricite de France said on Thursday its net profit almost doubled in 2003 despite hefty exceptional charges, thanks to strong performances from its French and European businesses.
Europe's biggest power producer also confirmed that it aimed to raise EBITDA (earnings before interest, taxes, depreciation and amortisation) margin above or to 26 percent and net margin over or to six percent in 2006, thanks to continuing efforts to rein in costs. EBITDA or core earnings as a percentage of sales came in at 24.5 percent in 2003 and net margin at 1.9 percent.
EDF said it made a net profit of 857 million euros ($1.05 billion) last year compared with 481 million euros the previous year. Net profit before exceptional items almost quadrupled to 1.981 billion euros from 500 million.
Operating profit jumped to 6.833 billion euros from 5.179 billion on sales of 44.919 billion euros. EBITDA rose to 11.026 billion euros from 11.216 billion.
It booked exceptional charges of more than 1.0 billion euros.
One-time items included 2.472 billion euros in provisions related to a revaluation of certain international assets, a 212 million euro interest charge linked to a payment to the French government of 1.217 billion euros in back taxes at the European Commission's behest.
An accounting change related to the amortisation of nuclear power plants created a 695 million euro gain while capital gains from the sale of stakes in France's Compagnie National du Rhone and in Swedish utility Graninge.