Thursday, March 28

EDF suffers its biggest fall in history after the plan of the French Government


The titles of the French company fell at the start of the session to 7.76 euros, 25% below the price set at yesterday’s close, although approaching the middle of the session the discount was limited to 16%, trading at 8.69 euros.

The collapse of EDF shares responds to the announcement by the French Minister of Finance, Bruno Le Maire, in an interview with ‘Le Parisien’, of the government’s plan for the power company to supply more nuclear energy at a discount to contain the rise in prices for homes and businesses.

Taking into account wholesale electricity prices, the measure, announced three months before the presidential elections, would imply a cost of between 7,700 and 8,400 million euros for EDFthe company warned.

“The financial consequences for EDF Group cannot be determined with precision at this time. For illustrative purposes and based on the information available to the group at this time, the impact of these measures on EDF’s gross operating profit (Ebitda) of 2022 is estimated at around 8,400 million euros at market prices on December 31, 2021, and around 7,700 million euros at market prices on January 12, 2022,” he explained.

In this way, the company stressed that the final impact will depend on the energy market prices during the implementation period, adding that EDF will consider the appropriate measures to strengthen its balance sheet and any measures to protect its interests.



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