Electricity, dividends: the CEO of EDF assistance shareholder the state policy – Le Figaro

VIDEO – In front of the shareholders of the group, Jean-Bernard Levy recalled the urgency to implement the proposed construction of the nuclear plant in England. The bill could gongler nearly four billion euros.

This Thursday is the financial future of EDF’s at stake . Indebted to over 37 billion euros, EDF has had to rely on its shareholder to help him. The state, which owns nearly 85% stake, will contribute up to three billion euros in a capital increase of 4 billion, which will be launched by late 2016 or early 2017. The group should indeed invest tens of billions of euros to modernize its nuclear fleet including (50 billion euros) or build the famous Central Hinkley Point, England (23 billion euros, including 15 billion for EDF), which is so controversial . A bill that could be weighed down by nearly four billion euros in cases of “hazards”, announced Thursday EDF. “Without Hinkley Point, the group would no longer any credibility to access new nuclear markets,” warns Jean-Bernard Lévy, on the occasion of the general meeting of shareholders.

According to the unions the sustainability of the company would be in play and some do not hesitate to talk about bankruptcy for the group. “This diagnosis is very exaggerated, responds firmly Jean-Bernard Lévy, CEO of the group in an interview with Parisien, Aujourd’hui en France . it is not realistic. There is no doubt about the sustainability and health of EDF. Let’s not panic. ” The former head of Thales and Vivendi recalls in this respect that “although our turnover is down (in the first quarter, it was down 6.7% to 21.4 billion against 22.9 billion in the first quarter 2015), we are the only European large electrician who has never lost money in recent years. ”

Despite this, Jean-Bernard Levy acknowledges that this astronomical debt “threatens the medium and long terms.” In 2013, it amounted to € 33.4 billion, an increase in the space of two years over 12%. In the viewfinder, state politics shareholder. “If our debt is so high, it’s because the last ten years we have served dividend (EUR 20 billion) and governments favored the low electricity tariffs. Do not deny it, “says the CEO of EDF. The Minister of Economy, himself, had acknowledged in late April, the state had received too many dividends.

Hence the decision of the Government, as part of the capital increase, to be paid over three years in the form of shares, which will enable the group to save 2 billion euros. In addition to this amount, EDF plans to sell 10 billion euros of non-core assets, saving two billion on its investments and a billion on its expenses. But also to look to new growth drivers: the group is particularly interested in North America and China

.