THE ECO SCAN – The boss of EDF ensures that “there are no worries to have” the financial position of the group. However, financial results last year are hardly shining. And massive investments should come to weigh a little more debt.
“There is no need to worry about EDF, which bears good”. Jean-Bernard Lévy, group boss, has sought reassurance about the financial strength of the company on Monday, while needs to decide “within weeks” the construction of two nuclear reactors at the site of Hinkley Point, UK. A project must cost more than 23 billion euros. EDF will finance two-thirds of this amount, 16 billion euros.
To do this, the group, owned more than 85% by the state, announced a capital increase of EUR 4 billion. A project that does not seem at all appease investors in midday action plunges over 8% to 11.24 euros. Since last summer, the stock has lost nearly half its value! Financial markets have he right to be worried?
“EDF continues to earn money each year”
“EDF continues to earn money each year,” says Jean-Bernard Lévy. That is true. Between 2012 and 2014, the profit of the group was around 4 billion euros. But last year, it was divided by three, as the EDF 2015 activity report. A sharp decline due to impairment of assets and strong provision of € 800 million spent in its accounts after Ségolène Royal was set at 25 billion euros the cost of landfill nuclear waste Cigéo.
As for the debt of EDF, having been reduced from eight billion euros between 2012 and 2013, it climbed to 4 billion in two years. direct consequence of this situation: the dividend paid to shareholders, maintained in recent years to 1.25 euro per share rose to 1.10 euros, with an option for EDF to pay in shares – option selected by the State – to save money.
A situation all the more worrying that the group faces a wall of investment: the refit, the cost could reach € 50 billion – and valued at $ 100 billion by Court of Auditors – the redemption of the activity of Areva reactors, the famous launch of Hinkley Point and the end of some EPR. On this last point, Francois Hollande warned EDF that the group will propose after 2018 – the date prior the launch of Flamanville (Manche) and the closure of the Fessenheim (Haut-Rhin) – “closing some plants “and” the extension of others. ” “The closure of Fessenheim, which works well since we have a record of nuclear production is expensive,” replies Jean-Bernard Lévy Monday morning.
The financial position of EDF in a few figures
• Turnover
• operating profit / earnings
• net debt
• Investments
• Dividends
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