In 2021, EDF achieved 85 billion euros in turnover, five billion in net results, it is much better than 2019, before the Covid crisis. EDF has sold its electricity to suppliers such as Total, Engie and above all, it has sold it at a very high price, thanks to the rise in prices. The problem, however, is that in 2022, it promises to be a cold shower. The electrician’s income is in danger of collapsing because the group produces significantly less.
EDF had to shut down many reactors due to corrosion problems. At least seven reactors are grounded at the moment, because the entire nuclear fleet is being reviewed, and there could be more shutdowns this year. Between 2021 and 2022, EDF plans to produce a third less electricity. This is also without taking into account the delays of the Flamanville EPR and the additional costs that this generates. Following all these malfunctions, EDF is very weakened.
The state will inject just over two billion euros. Bruno Le Maire the Minister of the Economy has just announced it. Main shareholder of EDF, with 84% of the capital, the State wants to give new money to the group. And there is urgency, because it is a question of preventing EDF from losing the confidence of investors, preventing the group from having difficulty borrowing money or borrowing very expensively, at very high rates. What would be a disaster at a time when EDF must finance heavy investments
and in particular the grand plan announced by Emmanuel Macron last week to relaunch nuclear power. It provides for the construction of at least six new EPRs, eight as a long-term option. From today, the government wants to send a signal to investors so that they continue to invest their money in the EDF group.
It is a very political issue, especially a few weeks before the presidential election. In addition, if EDF is in so much trouble, it is because the government has asked it to make efforts to deal with the energy crisis and freeze electricity prices. In the case, the group says it lost eight billion euros. Suffice to say that this injection of fresh money is welcome even if according to analysts, EDF is so weakened that two billion will not be enough.