“If there is need to recapitalize EDF, we will do,” says Macron – Les Echos

The discussions between EDF and the State in the public electrician financing plan continues. Traveling to the Civaux Nuclear Power Plant (Vienna) Thursday, Economy Minister wanted to reassure the financial sustainability of the project to 18 billion pounds (23 billion euros) of the English two EPR on EDF accounts , questioned by the resignation of chief financial officer last week. “If there is need to recapitalize, we will. If there is still need to waive the dividend, we will “, assured Emmanuel Macron.

Decisions will be made “by the beginning of May, both by clarifying this industrial strategy and explaining all the necessary measures to deal with it” , the minister added, pointing to lower electricity market prices (under 26 euros / MWh, against 37 euros / MWh in the fall) as the first factor of the new needs of EDF.

A recapitalization should take place only “selling other interests,” according Fir

“If we were to recapitalize any public company [EDF] or another, we would do it by managing our assets by selling other interests in other companies,” said Michel Sapin, Friday on Radio Classique and Paris first. “There is no question of increasing the debt of France in order to bear in a particular company,” supported the finance minister.

Deteriorating financial notes

under 2015, the State has agreed to receive their dividend in shares of EDF rather than in cash, allowing the group to strengthen capital (34.7 billion euros at end 2015). The state is ready to renew his effort, but the dividends for years to come will not be at the same level as in 2015. Given the decline in market prices, the group reviews its medium-term forecasts, which lead to revise the outlook for EBITDA and net income of EDF, but also its borrowing capacity. As lower market prices will lead to a degradation of the EDF financial rating, coupled with that, likely related to Hinkley Point file.

EDF could instead formalize a partial extension of the useful life of its nuclear fleet for its half-year. To complete a measure on the dividend, EDF worked with BNP Paribas the implications of a possible capital increase. But without the state has, at this stage, mandated bank.

“Too generous social compromise”

in consideration of efforts, the State asked EDF to accentuate the decline in costs. “The social compromise was too generous” , found Emmanuel Macron Thursday. In its latest forecast, EDF had already planned to save 1.1 billion euros by 2019, to bring its “opex” to 21.5 billion euros against 22 billion expected this year. EDF also continues to smooth investment: spending “refit” (the heavy maintenance program on nuclear park) have already passed 55 to 47 billion euros for 2014-2025 (51 billion in current euros). And the group could increase its sales plan. The sale of 50% of its subsidiary RTE is already on the table. As for the consumer, it may have to make an effort if a carbon tax, claimed by EDF, were to emerge

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