France’s nuclear company EDF in spiralling debt crisis
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New York Times 22nd April 2020, Plummeting electricity demand and falling power prices during the coronavirus outbreak could leave EDF in need of a capital injection by the
end of 2020 to avoid a spiralling debt crisis, a source close to the French firm and analysts said. The state-controlled utility, which operates the
world’s largest nuclear fleet, has long been weighed down by a 41.1 billion-euro debt pile. Shrinking income due to the health crisis and likely delays in reforming France’s electricity market, which could have boosted the firm’s earnings power, are now adding to its challenges and pressuring its financial ratios. A source close to EDF’s management said
the company may need a capital injection towards the end of the year to cushion the shock, with one analyst putting the size of any rights issue at several billion euros. |
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