Le Monde | • Updated | By
the state is struggling to adjust the delicate EDF record. The ministerial meeting, Wednesday, April 20, at the Elysee Palace, under the presidency of Francois Hollande, failed to make the expected trade-offs. Before reaching decisions on the future of the public electricity company, whose financial situation is tense, the president wished to benefit from additional lighting. “The equation is not yet resolved, we give ourselves a little more time than expected,” says a close case to the Elysee.
new expertise of EDF’s needs in particular have been requested from Bercy. Beyond the substantive issues on the group’s strategy and its investment projects, the immediate question to the shareholder State is that of a possible capital increase. EDF certainly does not appear “on the brink of bankruptcy,” as claimed by the unions.
But if the company actually starts build two European pressurized reactors (EPR ) in Britain for some 24 billion euros, without strengthening its own funds, it may see its lowered rating of one or two notches by the rating agencies. And be very turbulent stock market. A difficult prospect while EDF shares had already lost half its value in one year, and was excluded from the CAC 40 in December
Read also:. EPR at Hinkley Point: EDF expects arbitration of the Elysee
the boss of EDF wants the state bails out the company
to avoid another descent hell, CEO Jean-Bernard Levy, asked the government to make a move. They have already agreed that the dividend be paid on EDF shares to the state, which, this year, allowed not to disburse 1.8 billion euros. But the boss of EDF also wants the state bails out the company, as part of a capital increase of several billion euros.
This is where the key holder current debate. “Mr. Lévy asks for money, Bercy believes it did not immediately need,” summarizes a person familiar with the discussions. Before fixing the size and date of recapitalization, the Elysee Palace, the search for a compromise, would like to have additional technical elements.
At the Board of EDF provided Friday, April 22 afternoon, management therefore may not be able to present a “financial trajectory” as clear as it hoped. At this stage, the board is still maintained. He should be able to at least consider other aspects of EDF financing plan, particularly for new savings measures and disposal program. Of provisions considered indispensable in any case, given the drop in electricity prices in Europe, which reduced revenues and EDF profits.
As for the most sensitive subject, the UK EPR, critics increasingly bold on the relevance of this huge investment were clearly not shaken the conviction of Francois Hollande: “There is no question of challenging the project would -what by respecting the word given to the British “ we are assured in the entourage of the head of state. In early March, at the summit of Amiens, the president reaffirmed to David Cameron that the EPR project at Hinkley Point enjoyed the “full support of the French government.”
Read also: EDF should it build EPR in the UK?
The enormous technical and financial risks of the project
Since then, more and more voices were raised to point out the enormous technical and financial risks of the project. The CFO of EDF chose to resign for not validating such an operation.
Even within the government, the subject is no consensus. The economy minister, Emmanuel Macron, pushes EDF to launch without delay this investment, it considers “very important for France” and the nuclear industry. But the Minister of Environment, Energy and sea, Segolene Royal, it raises it, one condition: that the billions of euros spent at Hinkley Point do not reduce the amount allocated by the Group to energy renewable. “What seems impossible …” says a group administrator.
The Secretary of State for State reform and simplification, Jean-Vincent Place, was even further: the proposed construction of two nuclear reactors in the UK is a “strategic stalemate, said the ecologist elected 21 April on Europe 1. EDF has strategic vision to see absolutely. “
the unions at EDF, for their part, are headwind against the British project. Force Ouvrière, CGT and CFE-CGC have also decided to boycott the conference during which management were present the Hinkley Point folder Friday morning. A central works council scheduled for Thursday April 28 to discuss the financial situation of EDF with its CEO will give staff elected a new opportunity to voice their views.
See also: At EDF, pro and anti-clash Hinkley Point
No comments:
Post a Comment