The French state said it will inject around $2.39 billion into EDF to ease the financial pain inflicted by nuclear reactors going offline and the government making the firm supply power below market prices
Nuclear outages seen reducing core profit by 11 bln eurosPARIS, Feb 18 - The French state said on Friday it will inject around 2.1 billion euros into EDF
EDF said that the combined effect of having to sell power at below-market prices, and the nuclear outages, was likely to knock an estimated 19 billion euros off its forecast core profits in 2022.EDF shares fell 2% when the Paris stock market opened, extending a slide that has seen the company's stock drop 19.3% in value since the start of this year.
Reporting its financial results on Friday, EDF said the resulting drop in power production is forecast to reduce its 2022 core earnings before interest, tax, depreciation and amortisation by an estimated 11 billion euros. Nevertheless, higher global energy prices would add an estimated 6 billion euros to EDF's this year's core profit, the company said.The rights issue is part of an action plan that would allow EDF to fill gaps in its balance sheet for this year and next, and maintain its debt rating, company executives told reporters on a conference call.
The government, two months from a presidential election in which President Emmanuel Macron is expected to run, is concerned about mounting public anger over rising energy prices, and so has turned to EDF to help soften the impact.
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