EDF at stake: Electricians’ financial forecasts do not resist government price shorts

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EDF again significantly downgrades its financial forecasts

EDF is a stock exchange listed company, but the country still has a majority, but in order to maintain the similarity of French purchasing power, the government has almost destroyed the French nugget. The ridiculous situation in which the country penalizes itself by forcing the country to buy electricity in external markets at exorbitant prices. Therefore, as expected, EDF is again strongly reviewing its copy. A French energy company has announced that it will significantly lower its 2022 Ebitda forecast due to nuclear power plant corrosion problems and the amount of electricity the country sells at low prices.

Government-adjusted economic loss

The group, on the one hand, has the impact of Allenh (regulated access to past nuclear power), the amount of nuclear power that the state requires suppliers to sell to low-cost competitors, -8.4 billion. It is estimated to be -10.2 billion euros against the euro. Initial estimate. At the same time, EDF has had an EBITDA of 16 billion in EBITDA, compared to an initially estimated € 11 billion in production cuts planned for 2022, especially due to corrosion issues that have forced some reactors to shut down. We estimate that it will cost euros. By comparison, EDF’s EBITDA in 2021 was € 18 billion and sales were € 84.5 billion. The increased impact of the two factors is explained by the change in futures prices in 2022, which EDF explained in a press release “in a very volatile market situation.”

EDF’s € 3.1 Billion Capital Increase: State Participates in € 2.7 Billion Capital Increase

EDF's € 3.1 Billion Capital Increase: State Participates in € 2.7 Billion Capital Increase
€ 2.5 billion EDF capital increase © FranceTransactions.com/stock.adobe.com

Economic nonsense to maintain the purchasing power of French people

At the request of the state on January 14, EDF actually needs to buy an additional 20 terawatt hours on the market and resell it to the utility at a price of € 257 per MWh, according to a decree released on Sunday. .. 46.2 euros per MWh. In total, EDF must sell 120 TWh of this year’s Allen tariffs out of an estimated 295 to 315 TWh of nuclear production.

According to a reminder from Les Echos, energy companies also believe that the work done in connection with the corrosion problem “is likely to weigh on the ability of the group to achieve its goals.” War in Ukraine, “difficult to quantify”. Faced with the double impact of Arenh and the decline in production, EDF announced a € 2.5 billion capital increase and the state announced € 2.1 billion participation during the announcement of its annual financial results.

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