Electricity de France SA (EDF), the largest producer and distributor of energy in France as well as the majority shareholder of Edison, closed the budget 2022 with record loss of 17,9 billion euros (in 2021 it had closed with a profit of 5,1 billion). EBITDA (Ebitda) register a red of 5 billion. THE'net financial debt salt to 64,5 billion of Euro. The halt to nuclear production and the forced contribution to the French "shield tariff" decided by the Macron government to mitigate the impact of the Russia-Ukraine war on electricity prices weigh heavily on the budget. Despite this, the turnover it is up 70% to 143,5 billion thanks to the increase in energy prices.
“The 2022 results were significantly affected by the decline in our electricity production, as well as the exceptional regulatory measures introduced in France in difficult market conditions,” said the chairman and CEO of Edf, Luc Remont.
EDF since November 2004 it has become one again wholly public capital company and since 18 November 2005 it has been listed on the stock exchange. The French state, which owned about 84% of the company, decided in recent months to to acquire la totalityà of EDF with the aim of re-nationalize and proceed to delisted from the Stock Exchange. The choice of the Elysée has been defined as a "necessary" public intervention to obtain greater energy independence and allow EDF to invest in the nuclear expansion plan (14 new reactors by 2050) wanted by French President Emmanuel Macron. on February 9, after a simplified takeover bid, the State has passed the critical threshold of 90% by holding 96% of the company capital.
Does Edison become expendable?
In Italy EDF controls Edison which, just Thursday 16 February, has presented its 2022 budget with growing revenues but sharply declining profits.
The deep financial debt of EDF makes the possibility of sale by Edison. The Italian company is certainly one of the most valuable assets in his portfolio and a sale should valere between 7-8 billion of Euro. The French company has denied the rumors that follow one another while the Italian groups (and not only) are keeping an eye on the situation.
The big Italian energy companies have sensed the deal: A2a, through CEO Renato Mazzoncini, had already shown interest: “If Edison were to be put on the market – he underlined – I think it is important that it becomes Italian again. There aren't many players who might be interested, but we would put our heads into it. Edison is very similar to A2A and together they would be an important player and there are many synergies to be achieved".
Particularly interested of the situation could also be Snam pointing to storage assets by Edison. The CEO Stefano Venier, during the presentation of the new industrial plan 2022-2026, spoke clearly about the interest: “Edison's storage capacity is 1 bcm, ours is 11 bcm. It would make sense to put these two assets together to have synergies, but a lot depends on the decisions that Edf and Edison will make in this regard. We will certainly be following this option very, very carefully." In case the State decides to put them up for sale Snam would, therefore, ready to invest.
