RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2022-01-20 15:30:00

FRANCE'S ENERGY MEASURES $9.5 BLN

FRANCE'S ENERGY MEASURES $9.5 BLN

WNN - 19 January 2022 - Trade unions at the French energy giant EDF are calling for strike action next week over government measures designed to control fuel bill rises, which the company estimates could cost it as much as EUR8.4 billion (USD9.5 billion).

Shares in EDF have fallen nearly 20% since President Emmanuel Macron’s government’s announcement late last week, which required EDF to sell an additional 20 TWh of nuclear-generated energy at the regulated price of EUR46.2 per MWh - well below current market levels - to its competitors to help them limit the rise in prices for household and small businesses to 4% despite the soaring cost of gas.

Because EDF has already pre-sold the energy on long-term contracts, the company is now having to buy the 20 TWh back at spot prices.

In a statement after the announcement, EDF said: "The financial consequences for EDF Group cannot be precisely determined at this stage. For illustrative purposes and based on information available to the group at this stage, the impact on EDF’s 2022 EBITDA (earnings before interest, taxes, depreciation, and amortisation) of these measures is estimated at circa EUR8.4 billion based on the market prices on 31 December 2021 and at circa EUR7.7 billion based on the market prices on 12 January 2022."

The group, which operates 56 nuclear reactors in France, also withdrew its previous guidance for this year's financial results and said it would "consider appropriate measures to strengthen its balance sheet structure and any measure to protect its interests".

According to reports in La Tribune newspaper and Reuters news agency, EDF CEO Jean-Bernard Levy said in a message to managers that the company had fought the move and the decision had come as a "real shock".

He added that he hoped to be able to make public within a month the measures required to protect EDF’s balance sheet, adding "what is at stake is our ability to preserve our strategic development".

In other developments:

  • The joint trade unions’ representatives on the board described the decision as "looting" of the company for political reasons and have called for strike action on 26 January.
  • French Finance Minister Bruno Le Maire told RMC radio that "there is a very strong economic recovery, there are needs all over the world and shortages, so prices are rising … no other European government has done as much as us to protect the French".
  • He also said that the French state, which owns 85% of EDF, would stand by the company’s side.
  • Credit rating agencies have cut or are reviewing EDF’s current credit rating as a result of the government’s decision.

S&P Global said that it had placed EDF on “creditwatch negative” as a result of a combination of the government’s actions and the company’s “revising down of French nuclear output for 2022 to 300-330 TWh from 330-360 TWh mainly because of defaults that prolonged outages for five of EDF's 56 French nuclear reactors”.

It added: "Based on our preliminary estimations, the combined impact of these recent developments could cut EDF's 2022 EBITDA, as adjusted by S&P Global Ratings, by EUR10-13 billion from our previous assumption of EUR17.9 billion because EDF will have to purchase significant additional electricity volumes in the market at elevated prices."

S&P added that "timely remedy measures will be critical to maintaining the current rating … in our view, the magnitude of the announced profit warning warrants extraordinary measures."

However, it said that "because we view the current profit warning related to the negative state intervention as a one-off, we see rating downside potential limited to one notch."

-----


Earlier:

FRANCE'S ENERGY MEASURES $9.5 BLN
2021, December, 21, 12:50:00
FINLAND WIND POWER 1.3 GW
Metsähallitus will act as a project developer and the project will remain owned by the Finnish state.
FRANCE'S ENERGY MEASURES $9.5 BLN
2021, December, 6, 12:50:00
FRANCE'S NUCLEAR POWER +10%
The ARENH law (Accès régulé à l'électricité nucléaire historique, 2010) obliges EDF to sell part of its nuclear generation (up to 100 TWh/year, i.e. around a quarter of its production) to alternative suppliers on the wholesale market at a regulated price
FRANCE'S ENERGY MEASURES $9.5 BLN
2021, December, 6, 12:45:00
FRANCE'S MICRO NUCLEAR
It says its ultra-compact molten salt reactor uses "the untapped potential of used radioactive materials, and thorium, unused mining waste."
FRANCE'S ENERGY MEASURES $9.5 BLN
2021, December, 1, 15:55:00
FRANCE, IAEA NUCLEAR COOPERATION
France operates 56 nuclear power reactors, which make up over 70% of the country’s electricity generation. It has a smaller per capita carbon footprint than most developed countries. “France is already a world leader in low carbon energy generation, and nuclear energy has a major role to play in that,” Mr Grossi said.
FRANCE'S ENERGY MEASURES $9.5 BLN
2021, December, 1, 15:35:00
FRANCE'S WIND POWER 1 GW
France plans to grant for an offshore wind project off the coast of Normandy. The project will have a capacity of 1,000 to 1,050 MW and is expected to produce 4.5 TWh/year of electricity.
FRANCE'S ENERGY MEASURES $9.5 BLN
2021, November, 23, 12:15:00
FRANCE, UAE RENEWABLE ENERGY
"I can confirm to you we will launch new projects on all types of energies especially renewable energy and hydrogen. We clearly want to be hand in hand in the fight against climate change."
FRANCE'S ENERGY MEASURES $9.5 BLN
2021, October, 29, 13:55:00
BRITAIN'S NUCLEAR INVESTMENT $2.3 BLN
In December 2020, the UK government announced it would begin talks with EDF Energy to enable investment in the planned Sizewell C nuclear power plant project. The latest government statement confirmed these negotiations are ongoing.
All Publications »
Tags: FRANCE, ENERGY, EDF
Chronicle:
FRANCE'S ENERGY MEASURES $9.5 BLN
2022, October, 6, 13:04:00
2022 SAUDI PIPELINES INTERNATIONAL CONFERENCE & EXIBITIONS
Eventat Co (a Saudi local company) is hosting the first-ever “2022 Saudi Pipelines International Conference & Exhibitions” from 4-6 October, 2022 at the Dhahran Expo, Dammam (Eastern Province), Kingdom of Saudi Arabia. The three-day conference and exhibition are dedicated to bringing together over “50+ Regional/International speakers, 100+ Sponsors/Exhibitors, 1000+ Delegates and 3000+ Visitors” from around the globe who carry significant interest in enhancing the pipelines lifecycle for the current and future.
FRANCE'S ENERGY MEASURES $9.5 BLN
2022, October, 6, 13:03:00
INTERNATIONAL CONGRESS AND EXIBITION TURKEY & BLACK SEA OIL AND GAS
International Congress and Exhibition Turkey & Black Sea Oil and Gas is an international, professional platform, bringing together over 200 C-suite executives from vertically integrated oil companies, general directors, CTOs of oil refineries, gas processing plants and petrochemical facilities, initiators of investment projects on oil and gas extraction from Turkey and countries of the Black Sea area, officials of regulatory authorities, licensors of production technologies and world suppliers for the industry.
FRANCE'S ENERGY MEASURES $9.5 BLN
2022, October, 6, 13:02:00
TRANSPORTATION OIL AND GAS CONGRASS 2023 (TOGC 2023)
Transportation Oil and Gas Congress 2023 (TOGC 2023) takes place on February 20-21, 2023. The Congress brings together representatives from the whole pipeline chain and focuses on both strategic and technical issues of the oil and gas pipeline transportation.
FRANCE'S ENERGY MEASURES $9.5 BLN
2022, October, 6, 13:01:00
Pipelines In A Sustainable Future And Other Highlights Of TOGC 2023(TOGC 2023)
Transportation Oil and Gas Congress (TOGC) is held on February, 20-21, 2023, Istanbul, Türkiye. During 2 days of intensive networking participants get direct access to the whole pipeline chain. Among the highlights of the program are Panels, show type sessions based on discussion between panelists. They discuss the role of pipelines in a sustainable future, digital transformation and optimization of the pipeline industry, pipeline economics and pipeline integrity, H2 in Gas Grid.
FRANCE'S ENERGY MEASURES $9.5 BLN
2022, October, 6, 13:00:00
RUSSIAN NUCLEAR FOR BRAZIL
Russia and Brazil already have ties in the nuclear energy field with an MoU signed in 2017 by Rosatom and Brazil’s Electrobras and Electonuclear to promote cooperation in nuclear power.
FRANCE'S ENERGY MEASURES $9.5 BLN
2022, October, 6, 12:59:00
9TH INTERNATIONAL LNG CONGRESS LNGCON 2023
9th International LNG Congress (LNGCON 2023) 6-7 March, 2023 Link to the Congress website: https://bit.ly/3tXVmr7
FRANCE'S ENERGY MEASURES $9.5 BLN
2022, October, 6, 12:58:00
DISCUSSING LNG MARKET TRENDS AT LNGCON 2023
The closed-door International LNG Congress 2023 assembles top-level management and technical representatives of the LNG industry to discuss prevailing questions and present innovative solutions in Dusseldorf, Germany on March, 6-7, 2023.
All Publications »