French power group EDF has reported better than expected first-half profit growth. It says that was due a strong international performance though profit was also boosted by a one-off gain of almost one billion euros as it sold assets in Brazil. Before tax profit, at 2.9 billion euros was up by 41.6% and the company said it is on track to meet its 2006 profit target.
EDF, Europe’s biggest power supplier, which is 86% state owned, performed well even though it had to import electricity at higher prices as drier than usual weather cut output from its hydro-electric plants. The company also warned that a French government plan to charge small and medium sized business less could hit its earnings in 2007 and in 2008 possibly trimming operating profit by several hundred million euros.