Research Update: Electricite de France Placed On CreditWatch Negative On Further Nuclear Issues And Increase In Debt

Prompted by ongoing issues with stress corrosion identified or suspected at 12 of its 56 nuclear reactors, French integrated power utility Electricité de France S.A. (EDF) has revised down by 15TWh its anticipated domestic nuclear output for 2022 to 280TWh-300TWh, and it reported additional commissioning delays at its Hinkley Point C new nuclear build in the U.K. and additional capital expenditure (capex) of about £3 billion (in 2015 pounds). Additional domestic and U.K. capex will add to the group's inflexible investment program of about €17 billion expected annually from 2022, leading us to anticipate for 2022 a mid-single digit billion-euro EBITDA loss and an increase in S&P Global Ratings-adjusted debt to more than €96 billion, reflecting the substantial additional electricity

...- Prompted by ongoing issues with stress corrosion identified or suspected at 12 of its 56 nuclear reactors, French integrated power utility ElectricitT de France S.A. (EDF) has revised down by 15TWh its anticipated domestic nuclear output for 2022 to 280TWh-300TWh, and it reported additional commissioning delays at its Hinkley Point C new nuclear build in the U.K. and additional capital expenditure (capex) of about ú3 billion (in 2015 pounds). - Additional domestic and U.K. capex will add to the group's inflexible investment program of about 17 billion expected annually from 2022, leading us to anticipate for 2022 a mid-single digit billion-euro EBITDA loss and an increase in S&P Global Ratings-adjusted debt to more than 96 billion, reflecting the substantial additional electricity volumes EDF has to purchase in 2022, in the market at very high prices. - In our view, these developments, alongside the uncertainty on the company's remedy measures and the type, timing, and amount of any new...

Research Update