If we are to believe what its chief executives are saying, EDF’s (Électricité de France) business outlook is good. The energy giant, which plans to build two nuclear reactors at Hinkley Point in Somerset, is supposedly a rock-solid company, a market leader in both France and UK, and one that offers great opportunities of investment. The reality, however, may be somewhat different; the French group faces a seemingly impossible financial equation. EDF has colossal debt of €37 billion euros; it must deal with the complex €2.5 billion takeover of its sister company, Areva; as well as find the resources to maintain and operate its 58 French nuclear reactors at costs estimated between €60 and €100 billion until 2030. Is EDF truly as stable as it makes out to be or could the building pressure be about to blow?
Affairs Today 21st Oct 2016 read more »