In a few days, during a Board of Directors scheduled on January 27, EDF must take its decision to invest in the project to build two EPR nuclear reactors at Hinkley Point in Britain. However, internally, this giant project estimated at 23.7 billion euros, raises concerns, particularly with the union executives, the CFE-CGC. According to the daily ‘Les Echos’, CFE-CGC has scheduled on Wednesday to question employees and the Board of Directors. According to the union, “Hinkley Point represents a huge investment in terms of market capitalization of the group (22.5 MDSE) and its financial position. We see financial risks, industrial and legal”. Meanwhile, the stock exchange continues to tumble, down 2.5% to 11.40 euros. While EDF is heavily indebted and that the group is called to the aid of Areva, its share price is at record low, after fears about higher than expected cost of storage of nuclear waste (Cigéo project). In early January, ‘Les Echos’ wrote that the electrician had scheduled no less than 6.5 billion euros in asset sales in its 2016 budget to finance its investments. The cost of UK EPR project is estimated at £ 18 billion (in current cost 23.7 billion euros at current prices), of which EDF will take 66.5%. The CFE-CGC is concerned, however a slip these costs, in case of delay in the construction schedule, as was the case in Finland (project led by Areva) and at Flamanville in France and to a lesser extent in China. “There has been in recent years construction time shifts on the three sites where EPR is under construction. However, management does not consider these calendar drifts for his project,” points the CFE-CGC.
Boursier 20th Jan 2016 read more »