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The French energy group EDF has confirmed that its long-standing flagship nuclear project in Flamanville would be delayed by at least three years due to welding faults.
The ASN, the nuclear watchdog, had said in June that EDF, specializing in the nuclear field, had to repair eight of the planes joined in Flamanville, in northern France.
EDF also announced on Friday that it was considering "3 different scenarios to improve the penetration welds", but that "at this point, commissioning can not be expected before the end of 2022".
EDF had previously indicated that nuclear fuel loading was expected by the end of 2019, with commercial activity starting from 2020 and costs revised upwards, from 10.5 billion euros to 10.9 billion euros. billion euros. Originally, Flamanville is expected to cost 3.3 billion euros and begin operations in 2012.
Flamanville is considered a test case for the new generation of European pressurized reactors built there.
Even though an EPR is operational in China, Flamanville remains the most important test for EDF because of its 100% participation and its additional approval thanks to the approval of the ASN.
Flamanville is just one of three projects under construction in Europe using the technology of the new generation of European pressurized reactors. The other two projects are the Olkiluoto project in Finland, which is more than 10 years late, and the British Hinkley Point project, which is controversial as to its high cost.
The confirmation of the delay in Flamanville is part of the first half results which saw EDF's profit increase before depreciation and amortization (ebitda) of 3.5% compared to the same period last year, to reach 8.35 Billions of Euro's. Revenues increased by 4.3% to 36.5 billion euros.
EDF's net financial debt stood at 37.4 billion euros at the end of June and the group confirmed its target EBITDA range for 2019 from 16.0 billion euros to 16.7 billion euros.
Jefferies badysts said that "the company's update confirming the target range of its ebitda for 2019, despite a decline of about 30% in hydroelectric generation in France and several emissions in the UK, should relieve investors. "
"At first glance, we have not noticed any new updates on the potential restructuring of EDF, which implies that the expectation of this part of EDF equity equity continues", added the Jefferies team, referring to a restructuring plan for EDF at the request of the group. currently working in the company.
If it is approved by the government, the new EDF will be functionally split into two parts, both sitting under a state-owned parent company.
There will be EDF Blue, a 100% state-owned nuclear company, and EDF Green, a renewable energy and services company, which will be listed and a minority will be sold.
The plan must be submitted to the government and the European Commission before the end of the year. Trade unions, which are particularly strong in EDF, should oppose this initiative.
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