Shares of French energy company EDF fell today after opening by a record 25 percent. The French government controlled the electricity company to sell more electricity at a deep discount, helping to protect households from falling wholesale electricity prices. The measure could create state-owned utilities of 7.7 billion euros at hard market prices, Bloomberg said. EDF vera after the close of the market thus reduced the estimated year of production from the core by 8%. The reason is the unexpected shutdown of several of its nuclear power plants in France.
France awaits the presidential election in April and President Emmanuel Macron is amid the energy crisis in Europe in an effort to curb inflation and gain voter support. French Finance Minister Bruno Le Maire announced the latest move in an interview with La Parisien, which came out on Thursday. This year, electricity and households will be limited to 4 percent for electricity consumption, the minister said. Without these steps, prices from the 1st burrow would have risen by 35 percent.
As for the unexpected shutdown of several French cores due to repairs, EDF now estimates that its production from the reactor will reach 300 and 330 TWh this year, compared to the 330 and 360 TWh expected so far. On the contrary, this step could push electricity prices further up. The French and German electricity contracts have indeed risen after the production outlook from EDF has deteriorated, the German contract has fallen by 22% to 235.50 EUR / MWh.
EDF has stated that it will consider appropriate measures to strengthen the structure of its balance sheet and any measures to protect its assets. The current results can be published on 18 November. Until then, it wants to publish its debt forecast for the latest year, which it withdrew.
At 9.30 am EDF shares in Pai fell by 23%. The decline is illustrated by the following chart of developments over the last day:
EDF action over the last 5 years:
The purchase of 16 analysts followed by Bloomberg is currently recommended for this title. Two would fight and one would sell.
According to JPMorgan analyst Vincent Ayral, EDF will “be likely to consider an external chapter” given the circumstances.
According to an analyst at Bernstein, this is a “worst case scenario” for EDF. before deciding to build new reactors.
Source: Bloomberg, lokal.cz