During the presentation of his program for the presidential election, Emmanuel Macron yesterday explained the need for the State "to take capitalistic control" of a "part of the activities" of EDF, "the most sovereign".
The principle of this fundraising had been unveiled in mid-February by EDF, which is 84% owned by the State.
The group expects a dip in its results in 2022. It must deal with problems in nuclear production but also with government measures to limit the rise in electricity bills.
Concretely, EDF will sell 2 new shares for 13 existing shares at a unit price of 6.35 euros per new share with preferential subscription rights maintained.
"The capital increase that we are launching today will allow the Group to strengthen its balance sheet structure in the context of the events of early 2022, and to pursue its CAP 2030 strategy", indicated the CEO of the group Jean-Bernard Lévy.
A complicated year 2022
The State, which holds with EPIC Bpifrance 83.88% of EDF's capital, has already announced in a separate press release "to renew its commitment up to this share", "i.e. a subscription of 2.654 billion euros”.
"The State thus contributes, as a wise long-term shareholder, to securing EDF's financial situation and its financing capacity in the short and medium term, and enables the company to pursue its strategy of profitable development in framework of the energy transition", according to the Ministry of the Economy.
In 2021, the group saw its net profit multiply by 8 to 5.1 billion euros, but warned that it would be heavily affected this year due to corrosion problems on its nuclear fleet and the volume of electricity that the state forces him to sell at low prices to contain rising bills.
EDF estimates that the drop in its production planned for 2022, in particular because of the corrosion problems which are forcing the shutdown of several reactors, will cost it 16 billion euros against 11 billion euros initially planned.
Towards the nationalization of certain activities
In addition, at the request of the State on January 14, and according to a decree, EDF will indeed have to buy on the market 20 additional terawatt hours at the price of 257 euros per MWh, to resell them to electricity suppliers at the rate of 46.2 euros per MWh…
Added to this is the war in Ukraine, but this remains difficult to estimate for the moment.
At the same time, this announcement seals a little more the nationalization of certain activities of the company starting with nuclear activities.
Only the company can hardly consider future investments in nuclear power: work to extend the reactors, new power plants, etc.
This nuclear nationalization project has been envisaged since 2019 by removing nuclear activities from the rating.
Conversely, EDF could introduce on the stock exchange, the activities on the renewable, the networks of transport of electricity.
This project had been rejected by Brussels.