PARIS, Jan 14 (Reuters) – EDF fell on the stock market at the start of trading on Friday after the French government announced new measures aimed at limiting the rise in the price of electricity billed to individuals and the downward revision of the production forecast for the group’s nuclear fleet for this year.
The title of the leading French electricity producer, in which the State owns more than 81% of the capital, gives up 23.46% in the first exchanges to 7.92 euros, the lowest since June 2020.
The government announced Thursday evening an increase in the volume of nuclear electricity that EDF sells at a reduced price to its competitors, in order to limit the increase in regulated electricity tariffs (TRV) to 4% on February 1.
This measure could reduce the group’s gross operating surplus (Ebitda) by more than eight billion euros this year.
At the same time, EDF announced that the nuclear reactor of its Penly power plant, in Seine-Maritime, was also affected by a corrosion problem on the safety system, already detected or suspected on four other reactors shut down. As a result, the 2022 forecast for nuclear electricity production has been reduced to between 300 and 330 terawatt hours, compared to 330-360 TWh previously.
EDF will have to buy this generation deficit on the market, which will result in higher costs and further increase the impact of government measures, underlines JP Morgan in an analysis note, adding to expect to see the group forced to strengthen its balance sheet.
“We believe a capital increase is likely at this stage to compensate for the significant drop in Ebitda it will face in 2022,” said the American bank.
She notes in this regard that the Minister for Ecological Transition, Barbara Pompili, assured Thursday that the State would be “alongside EDF to help them overcome this difficulty”.
(Written by Marc Angrand, edited by Blandine Hénault)
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