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EDF Shares Jump on Restructuring Plan, Nuclear-Price Reform 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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