Finance

French state won’t ever let EDF fall by the wayside, says finance minister Le Maire

A flag with the corporate emblem of Electricite de France (EDF) and a French flag fly subsequent to the EDF energy plant in Bouchain, close to Valenciennes, France, September 29, 2021. REUTERS/Pascal Rossignol/File Picture

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PARIS, Jan 19 (Reuters) – The French state will “by no means” let utility EDF (EDF.PA) fall by the wayside and can help the corporate because it faces difficulties resulting from French coverage measures to cap energy worth hikes for shoppers, mentioned Finance Minister Bruno Le Maire.

Le Maire’s feedback got here one week after the federal government of President Emmanuel Macron – dealing with a re-election battle in three months – ordered the utility to promote extra low-cost nuclear energy to rivals, prompting the state-owned firm’s CEO to overtly criticise the federal government. learn extra

“If costs are low and fewer profitable, the state will stand by EDF’s facet,” Le Maire advised RMC radio.

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The primary commerce unions at EDF have known as for strikes, including to criticism by EDF Chief Govt Jean-Bernard Levy who known as the most recent authorities determination a “actual shock” and introduced measures to defend his firm’s pursuits. learn extra

Le Maire added on Wednesday mentioned that no EDF staffer wanted to fret about their future.

“We are going to help this nice public firm which is the pleasure of the French individuals,” he mentioned.

“We are going to proceed to put money into EDF as a result of we now have the target of constructing new nuclear reactors that, from a strategic perspective, are completely decisive for EDF.”

The French state owns 84% of EDF’s shares, which have misplaced virtually 40% of their worth since October.

The group forecast final week that the federal government determination would knock round 8 billion euros ($9.13 billion) off its 2022 core earnings earlier than curiosity, taxes, depreciation and amortization.

The hit got here as EDF prepares to finance billion-dollar investments in new reactors that President Macron has mentioned the nation is planning to construct.

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Reporting by Tassilo Hummel;
Enhancing by Sudip Kar-Gupta

Our Requirements: The Thomson Reuters Belief Ideas.

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