EDF Shares Jump on Restructuring Plan, Nuclear-Price Reform News
November 27 2020 - 10:09AM
Dow Jones News
By Giulia Petroni
Electricite de France SA's shares jumped on Friday following
media reports that the French government is set to reach an
agreement with European Commission regulators on the company's
restructuring plan and a reform of nuclear-energy prices in
France.
At 1420GMT, shares traded 9.4% higher at EUR12.80.
After several months of negotiations, the French government is
reportedly close to ratifying EDF's "Project Hercules" plan,
according to French media outlets.
Under the agreement, EDF would be reorganized around three
divisions--EDF Green, EDF Blue and EDF Azur, French newspaper
Liberation reported. A third of the capital of the "green"
activities would be listed, while EDF Azur, the hydropower unit,
would become a subsidiary of EDF Blue, which includes nuclear.
French business paper Les Echos, however, reported that the plan
is still under review and that other options are on the table.
Liberation also reported that the French government would reform
the Arenh regime, which currently allows energy suppliers to secure
nuclear power from EDF at fixed prices. The reform would increase
the price of electricity resold by EDF to its competitors.
"In the scenario of a green/blue restructuring in combination
with regulated price of EUR45-EUR50/MWh, we see 20-40% of upside,"
analysts at Jefferies said.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
November 27, 2020 09:54 ET (14:54 GMT)
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