EDF has launched a capital increase of more than 3.1 billion euros. The principle of this fundraising had been unveiled on February 18, but its amount is finally much higher.
Le Monde with AFP
EDF launched on Friday, March 18 a capital increase of more than 3.1 billion euros, of which 2.7 billion will be brought by the State, in order to strengthen its finances, which should be staggering this year.
The principle of this fundraising had been unveiled on February 18, recalls EDF in a statement, but its amount is finally much higher than the 2.5 billion then announced by the company held at nearly 84% by the state. Thursday, when presenting his presidential project, Emmanuel Macron, however, suggested that he wanted to nationalize EDF.
The Group, which expects a plunge of its result in 2022, must deal with problems in nuclear production and government measures to limit the rise in electricity bills.
He will put on sale two new shares for 13 existing shares, at the unit price of 6.35 euros by new action, with a maintenance of preferential subscription rights. The CEO of the group, Jean-Bernard Lévy, cited in the press release, explains:
“The capital increase we are launching today will enable the Group to strengthen its balance-up structure, in the context of the events of the beginning 2022, and to continue its CAP 2030 strategy.”
results amputees of 11 billion euros
In 2021, the group saw its net profit multiplied by 8, to 5.1 billion euros, but warned that it would be heavily affected this year due to corrosion problems on several security systems reactors. These problems led to prolonged stops for many of them.
But, most importantly, the group will suffer government action to limit the increase in electricity bills at 4% this year.
This government measure, in full debate on the purchasing power and approach of the presidential election, forces EDF to sell more nuclear power at a price to its competitors (46.20 euros per megawatt hour [MWh] ), while courses in wholesale markets are very high (257 euros per mWh).
Its results should be amputated this year of approximately € 11 billion because of the decline in nuclear production and 8 billion because of the exceptional measures of the government, which decided to get the hand to the portfolio .
Group heavily indebted
The State, which holds with the public establishment of industrial and commercial nature (EPIC) BPIFRANCE 83.88% of the capital of EDF, has, indeed, already announced in a separate statement “renew Its commitment to this quota “,” is a subscription of 2.654 billion euros “to the capital increase.
“The state contributes, as a long-term advisory, to secure the financial situation of EDF and its short- and medium-term funding capacity, and allows the company to continue its strategy of profitable development in the energetic transition “, insisted the Ministry of the Economy.
This capital increase occurs at a time when the group is heavily indebted, at 43 billion euros at the end of 2021, but must invest greatly.
The announcement of this increase on February 18 had been greeted in a frilic way by the unions. “Certainly, we strengthen the equity, but very weakly and it will not solve the financial equation, facing the wall of investments that EDF has to achieve,” reacted Amelie Henri, National Secretary CFE-UNSA- Energies for EDF.
The subscription period of nearly 500 million new shares will open Wednesday, March 23 to finish the 1 Er April included. The company will publish the results of its capital increase on April 5th.
In mid-February, EDF had also announced an “action plan” to deal with these difficulties, also evoking a plan of disposals of 3 billion euros in total until 2024.