The electricity supplier EDF announced on Friday February 18 a ” action plan “ to deal with its difficulties, with a capital increase project of approximately 2.5 billion euros and a disposal plan of 3 billion euros in total until 2024.
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The group, nearly 84% owned by the state, saw its net profit multiply by 8 last year to 5.1 billion euros, but warned that it would be heavily affected this year by nuclear production at half mast and by the government’s measures to limit the rise in electricity bills. “We have been encountering difficulties since the beginning of 2022”CEO Jean-Bernard Lévy confirmed to journalists.
The Minister of Economy Bruno Le Maire has also indicated that the State will participate in the recapitalization of the group, up to 2.1 billion euros. This sum corresponds to the 83.9% share of the State in the electricity supplier, which will increase its capital by 2.5 billion by 2024, said the minister.
Corrosion on reactors
EDF will indeed suffer this year from nuclear production at half mast, with in particular corrosion problems on several reactors, and government measures to limit the rise in electricity bills.
These two factors will thus weigh negatively by respectively 11 billion and 8 billion on its gross operating surplus, which reached 18 billion in 2021. EDF has therefore unveiled a capital increase project of around 2.5 billion euros. The State will participate to the tune of 2.1 billion, said Friday morning the Minister of the Economy, Bruno Le Maire, on RTL.
The group also offers an option to pay dividends in shares (and not in cash) for the 2022 and 2023 financial years. Finally, EDF announces disposals of around 3 billion euros in total over the years 2022, 2023 and 2024 .
With a net debt of 43 billion euros at the end of last year, the supplier must cope with major investments, in particular the construction of a new EPR announced by the President of the Republic.