EDF suffers a record crash on the stock market after the French government's plan to limit the rise in energy prices
The shares of the French electricity company EDF have registered this Friday a historic drop of 25% on the Paris Stock Exchange, after learning of the agreement to limit the impact of the rise in energy prices reached with the French Government, the company's main shareholder , with a participation close to 88%.
Ribera assumes that two of his star measures to lower electricity prices will not be in force until the second half of 2022
The titles of the French company came to fall at the start of the session to 7.76 euros, 25% below the price set at yesterday's close, although as the mid-session approached 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 7.7 and 8.4 billion euros for EDF, the 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.