|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||9.18 - 9.33|
|52 Week Range||9.18 - 15.89|
|Beta (3Y Monthly)||-0.09|
|PE Ratio (TTM)||19.20|
|Earnings Date||Feb 14, 2019 - Feb 18, 2019|
|Forward Dividend & Yield||0.31 (3.33%)|
|1y Target Est||14.56|
The decline of nuclear in the global energy mix poses a threat to economies and efforts to reduce carbon emissions, International Energy Agency (IEA) Executive Director Fatih Birol said on Wednesday. Safety concerns, soaring costs and technological setbacks have slowed nuclear projects since the Fukushima nuclear plant disaster in Japan in March 2011. At the same time, despite governments setting ambitious targets to cut green house gas emissions responsible for global warming, emissions hit a record high in 2018.
The UK’s energy regulator has proposed cutting funding by £80m for the project that links the new Hinkley Point C nuclear reactor to the electricity grid after rejecting some of the National Grid’s requests for cash. Ofgem said it plans to grant National Grid Electricity Transmission £637m, compared with an initial request for £717m, and that the new funding framework would save customers money. The UK’s first new nuclear power plant in three decades has been hit by delays and spiralling costs.
Is Electricité de France S.A. (EPA:EDF) a good dividend stock? How can we tell? Dividend paying companies with growing...
(Bloomberg) -- Electricite de France SA said repairs of faulty welds at a nuclear plant under construction in western France will boost the project’s cost by 14% to 12.4 billion euros ($13.6 billion), adding further financial strain to the cash-strapped atomic power giant.The latest budget hike at the Flamanville-3 reactor is yet another blow to the French state-controlled utility, which raised its cost estimate for two similar reactors it’s building in the U.K. just weeks ago. It also fuels doubts about nuclear’s future in France, where the government has been reluctant to approve new projects before Flamanville-3 is online.EDF has increased its estimated bill for the project by 1.5 billion euros in the latest assessment, it said Wednesday in a statement. The almost-completed plant, which is already seven years behind schedule, won’t be able to load nuclear fuel before the end of 2022 as EDF needs to repair 66 welds, it said.“The market was already anticipating some additional cost for the weld issue,” RBC Capital Markets analysts said in a note. “However, these costs, in our opinion, are slightly higher than what would have been anticipated.”EDF shares fell as much as 1.6% in Paris, and were down 0.8% at 9.47 euros as of 10:23 a.m. local time.EDF’s preferred scenario for repairs, which includes using remote-operated robots to conduct high-precision operations inside piping for eight welds, would push net investment to 15.5 billion euros in 2020, a 500 million-euro increase. It would trim net income by a projected 400 million euros next year, EDF said.The utility aims to secure approval from the French nuclear-safety authority for its repair plan by the end of next year. It also has a fallback option, which would entail extracting the piping to repair the welds, but that would “probably lead to a extra delay of one year and an extra cost of 400 million euros,” EDF’s head of nuclear new-build, Xavier Ursat, said on a conference call.The budget for Flamanville-3 has more than tripled since construction started in 2007. The repeated setbacks, which have forced EDF to sell assets to curb debt in recent years, contrast with tumbling costs for solar and wind projects. While nuclear energy can provide low-carbon electricity around the clock, spiraling costs may make it harder for EDF to convince the French and British governments to provide the support needed to help it fund new atomic plants.The French government has asked EDF to prove by the middle of 2021 that it can build competitively priced nuclear plants to replace some of its 58 aging reactors. Competition from other clean-energy sources is stiff. France, like Britain, is working to step up the pace of building offshore wind farms.The new setback at Flamanville also comes at a critical juncture, with EDF seeking to sell as many as six similar reactors in India. It’s competing with Russian, Chinese and U.S. builders in other markets such as Saudi Arabia.EDF has repeatedly blamed the delays at Flamanville on a lull in reactor construction in France at the turn of this century, saying that led to a loss of knowhow. Two similar reactors built by a venture between EDF and China General Nuclear Power Corp. in southwest China successfully started up in recent months.The delay in starting the 1.6-gigawatt Flamanville project is likely to put some strain on France’s power supply in the event of unexpectedly cold winters. The government is forcing EDF to close two 900-megawatt reactors along the German border next year, and it also wants utilities to shutter 3 gigawatts of coal-fired capacity in 2022.(Updates with analyst comment in fourth paragraph, shares in fifth)To contact the reporter on this story: Francois de Beaupuy in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Amanda JordanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
French energy giant EDF announced increased costs to its long-troubled flagship nuclear project at Flamanville on Wednesday as it confirmed delays to the opening of the plant due to faulty weldings. The company said construction costs would rise by €1.5bn to €12.4bn and the loading of nuclear fuel would be delayed until the end of 2022, which had previously been scheduled for the end of 2019 with commercial activity starting in 2020. Flamanville was originally expected to cost €3.3bn and start operations in 2012.
The second hot functional test phase has started on site. In the letter of 19 June 2019, the Nuclear Safety Authority (ASN) asked EDF to repair the eight containment penetration welds for Flamanville EPR, not compliant with the break preclusion principle(2).
French utility EDF faces an additional 1.2 billion euros in costs to repair faulty weldings at the nuclear reactor it is building in northern France, bringing the total budget to more than 12 billion euros, news daily Le Figaro reported on Tuesday, citing sources. The French Nuclear Safety Authority (ASN) said earlier this year that EDF faced new cost overruns and delays of up to three years at the nuclear reactor in Flamanville after the regulator ordered repairs. ASN has said EDF would have to repair eight faulty weldings in the reactor's containment building, adding that it had rejected a request to delay repairs until 2024, after its start-up.
Profits from supplying gas and electricity at Britain’s big six energy firms sank by a combined 35 percent last year as they continued to lose customers to smaller rivals, a report by energy market regulator Ofgem said on Thursday. Britain’s so-called 'Big Six' energy suppliers - Centrica's British Gas, E.ON, SSE, EDF's EDF Energy, Innogy's npower and Iberdrola's Scottish Power - have faced competition from more than 60 smaller firms, often offering cheaper prices. In its annual state of the market report, Ofgem said the six companies had lost around 1.3 million customers and they served just above 70% of domestic customers as of June this year, down from around 75% in June last year.
2 October 2019 Information regarding the voting rights and shares (Article L.233-8-II of the French Commercial Code and 223-16 of the General Regulations of the “AMF”).
EDF has submitted an application to the regulator and to France’s minister in charge of the energy and solidarity transition, in which it has requested approval for the termination of operations and permanent shutdown of both reactors at Fessenheim nuclear power plant (NPP). This submission follows on from the signing, on the 27th of September 2019, by the State and by EDF, of a protocol agreement whereby the State will compensate EDF for the early closure of Fessenheim NPP, resulting from the limitation of nuclear power output set by a law passed on the 17th of August 2015, pertaining to the energy transition in support of green growth. Initial instalments to compensate for expenses incurred by the closure of the plant (post-operational expenditure, BNI taxes, dismantling and staff redeployment costs), which will be paid over a 4-year period following closure of the plant.
(Bloomberg) -- Britain’s biggest construction project is emerging from the ancient flatlands in the west, overlooking the sea where humans have lived for more than 10,000 years.Over an area covering 245 soccer fields, Electricite de France SA is building the U.K.’s first new nuclear power plant in more than 20 years. The project employs 4,500 people and will cost up to 22.5 billion pounds ($28 billion), a sum the French utility boosted this week after discovering more difficult conditions on the ground. Still at least five years away from producing electricity, the Hinkley Point C near Bridgwater near where the River Parrett empties into the sea will feed enough electricity for 6 million homes. In addition to being the largest and most advanced infrastructure project in the country, it’s generated a number of superlatives that highlight the scale of the work underway. It included the largest single pour of concrete in the U.K., taking 240 hours to put 9,000 cubic meters of the material into a nest of steel reinforcement bars. More recently, EDF installed “Big Carl” at the site. The world’s largest crane towers 250 meters overhead, moving along 6 kilometers of track powered by 12 engines. The crane operated by Sarens NV of Belgium arrived on 280 trucks and took about three months to erect.Once finished, Hinkley will contain 3 million tons of concrete and 50,000 tons of structural steel, enough to build a railway line between London and Rome. Two tunnels out to sea feeding water for cooling are more than 7 meters in diameter, drilled with the same machines that bored a new subway line in London. The pipes will be capable of filling an Olympic-sized swimming pool in 20 seconds.The U.K. government has put nuclear at the center of effort to attract billions of pounds of investment in new power plants as old reactors are retired in the coming years. Many see nuclear as key to the country’s low carbon future as fossil fuels are gradually phased out, but the technology is facing stiff competition from renewable energy, including offshore wind where prices are plunging. EDF says that once Hinkley produces energy, using the nuclear power instead of traditional alternatives will prevent some 600 million tons of carbon dioxide from entering the atmosphere. EDF’s own assessment of the lifetime emissions of Hinkley – that is the carbon emitted right through construction to retirement – is 4.8 grams of CO2 per kilowatt hour, 35% of which will come in the construction phase. To contact the authors of this story: Jeremy Hodges in London at firstname.lastname@example.orgRob Dawson in London at email@example.comTo contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org, Lars PaulssonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Nuclear power is in danger of pricing itself out of the energy market in Europe.Electricite de France SA’s announcement on Wednesday that the investment needed for two new reactors in the U.K. will be as much as 2.9 billion pounds ($3.6 billion) more than previously forecast highlighted rising costs for the industry.Aside from the British project at Hinkley Point in southwestern England, additional nuclear plants in Finland and France are also behind schedule and over budget. The industry’s woes contrast with swiftly falling costs for installing wind and solar farms -- and especially for erecting power generation turbines at sea.“If the industry is incapable to deliver on time and on budget, other options are going to take over,” Mycle Schneider, an independent consultant on nuclear policy, said in an interview.Across the continent, the political winds that previously supported nuclear power are shifting. Governments everywhere are searching for low-carbon technologies to replace coal, but cost questions more often are pushing them toward renewables.In France, which is the most dependent on nuclear power of any major economy, President Emmanuel Macron has asked EDF to prove that it can build new atomic stations at a lower cost. The government is rolling out a series of auctions for wind farm capacity.In the U.K., the Conservative government has made new nuclear a major part of how it intends to replace aging coal plants that will close in the next decade. At the same time, it’s working to step up the pace of building offshore wind farms, and ministers remained mostly silent when two major nuclear projects were quietly shelved within the past year.In Finland, a 1.6 gigawatt nuclear project was supposed to connect to the grid a decade ago, but is still waiting to do so amid cost overruns and legal issues.The setback EDF reported on Wednesday in the U.K. followed a series of issues at its plants in France, where the regulator is asking the utility to repair faulty piping welds at the Flamanville project and assessing substandard welds on steam generators of the facility and at six older plants.Hinkley’s issues are so damaging because of the scale of the project -- and the risks it entails for EDF. The Hinkley Point C reactors now will cost 21.5 billion pounds to 22.5 billion pounds to complete, EDF said Wednesday in a statement, citing “challenging ground conditions” among other extra expenses. Its shares tumbled as much as 6.9% to the lowest level in two years.“The cost overruns are material versus the EDF market cap,” Royal Bank of Canada analysts wrote in a note to clients. “This is likely to further boost support for renewables, and especially scaleable offshore wind, as the main decarbonization solution for electricity generation.”READ MORE: World’s Biggest Crane Gets to Work a Nuclear PlantIn January, Hitachi Ltd. walked away from the Wylfa atomic project in Wales Ltd. in January despite a generous package of support from the government. That indicated the difficulty of raising money for the projects that cost billions and can take more than a decade to start earnings revenue.Cheaper WindNuclear’s eye-watering price tag stands in stark contrast to renewables in recent years. Between 2009 and 2018, the cost of new nuclear projects rose 23%, according to the World Nuclear Industry Status Report 2019. In the same period, utility-scale solar costs fell 88%, and the cost of wind energy dropped 69%.“It’s become overwhelmingly clear that a renewable energy system based on offshore wind and other renewables is the cheapest, fastest and most reliable way to cut carbon emissions,” said Doug Parr, chief scientist at Greenpeace U.K. “Ministers should heed the lesson from the Hinkley debacle and never make the same mistake again.”While EDF said the cost revision announced Wednesday won’t have an impact on U.K. consumers or taxpayers, it underlines just how expensive the technology is. To support the project, EDF secured a power purchase agreement with the government to ensure a fixed price. If the market price is below the agreed price, then the government would pay back the difference.The Hinkley plant will sell power for 92.50 pounds a megawatt-hour when it starts. That’s almost double the current wholesale price in electricity markets and significantly higher than the 39.65-pounds a megawatt-hour that the offshore wind projects will cost.As renewables get cheaper they could actually push down the price of electricity in markets, raising the overall cost of nuclear to tax payers. That’s part of the reason why the U.K. is looking for a different funding model to support the Sizewell C atomic project that EDF is promotiing.Even that support could crumble if the Conservatives lose the next election. Britain’s main opposition Labour party plans to cut support for nuclear projects and tilt the grid toward renewables.“You’d have to undertake heroic actions to try and resuscitate other nuclear schemes,” Alan Whitehead, the opposition Labour party’s shadow minister for energy and climate change, said in an interview. “It’s not an ideological choice. It’s a practical choice to spend the money wisely to get to your low carbon goal.”Still, nuclear is one of the few kinds of power generation that is both low-carbon and consistent, regardless of wind speeds or sunshine.READ MORE: Biggest Concrete Pour in U.K. Advances EDF PlantEDF still hopes to begin generating from the first unit at the end of 2025. It also said the risk have increased of a 15-month delay for that reactor and a nine-month delay for the second. A delay would add 700 million pounds to the bill.EDF also cut its estimated rate of return from the Hinkley project on Wednesday, to between 7.6% and 7.8%. That’s down from 8.5% it expected two years ago.That’s an indication of the scale of the economic challenge facing nuclear power, which in raises questions about how quickly the U.K. can reduce emissions in its energy system.“Zero carbon strengthens the case and need for some nuclear power,” said Neil Hirst, senior policy fellow for energy and mitigation at the Grantham Institute, Imperial College London. “But it’s harder to make the case.”To contact the reporters on this story: William Mathis in London at email@example.com;Francois de Beaupuy in Paris at firstname.lastname@example.orgTo contact the editor responsible for this story: Reed Landberg at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Electricite de France SA raised the estimated cost of two reactors it’s building in the U.K., making Britain’s nuclear ambitions look increasingly untenable as renewables become ever cheaper to develop.EDF said the bill for the Hinkley Point C reactors could rise by as much as 2.9 billion pounds ($3.6 billion), and warned of a delay to their completion. The French utility -- not British consumers -- will swallow that extra cost, but the increase raises questions about whether other nuclear power plants planned in the country will be affordable.The giant atomic project is expensive compared with U.K. wind, for example, where power from the latest offshore auction sold at less than half that from Hinkley.The U.K. government has put nuclear at the heart of its effort to attract billions of pounds of investment in new power plants as aging reactors are retired in the coming years. The technology has been seen as a key part of a cleaner electricity mix, complementing the rising share of renewables. Yet delays and cost overruns at Hinkley -- echoing EDF’s troubles at a similar plant in France -- will cast doubt on a nuclear renaissance already facing criticism.The project completion cost at Hinkley Point C is now estimated at 21.5 billion to 22.5 billion pounds, EDF said Wednesday, citing “challenging ground conditions” among other extra expenses. The additional costs will be borne by EDF and its Chinese partner China General Nuclear Power Corp., though they’re still set to receive 92.50 pounds for every megawatt-hour of power Hinkley generates -- more than double the current market price.The two Hinkley units will be the country’s first new reactors in decades, but have faced heavy opposition for their high cost to consumers. Other U.K. nuclear projects have also struggled to compete with the falling cost of wind and solar farms. Hitachi Ltd. in January scrapped its Wylfa venture in Wales despite a generous package of support from the government.EDF’s shares tumbled as much as 7.4%, the most in two weeks. The stock traded down 6% at 10.06 euros as of 3:28 p.m. in Paris, valuing the company at 30.7 billion euros ($33.7 billion).“The cost overruns are material versus the EDF market cap,” RBC analysts said in a note. “This is likely to further boost support for renewables -- and especially scaleable offshore wind -- as the main decarbonization solution for electricity generation.”The Hinkley plant’s guaranteed power price is significantly higher than the 39.65-pound fee agreed in the latest round of offshore wind projects. Nevertheless, EDF on Wednesday cut its estimated rate of return from the plant to as little as 7.6% from 8.5% seen two years ago.The announcement also adds to EDF’s woes at home, where its Flamanville reactor -- using the same design as Hinkley -- is years behind schedule and way over budget. French President Emmanuel Macron has asked EDF to prove that it can build new nuclear power stations at lower cost amid falling renewable-energy prices.The U.K. government approved EDF’s plan to build the two Hinkley reactors for 18 billion pounds in 2016, and the cost was raised to 19.6 billion pounds the following year.The company said Wednesday it still hopes to begin generating power from the first unit at the end of 2025, though the risk of a 15-month delay for that reactor -- and a nine-month delay for the second -- has increased. If that risk were to materialize, it would entail an additional cost of about 700 million pounds, it said.(Updates shares in sixth paragraph)To contact the reporter on this story: Francois de Beaupuy in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Amanda JordanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Massive infrastructure projects are almost always delivered late and over budget. The bill for London’s Crossrail project has risen to 17.6 billion pounds ($21.9 billion), while the country’s north-south HS2 rail link may end up costing an unfathomable 88 billion pounds.Even so, there’s a place in budgetary hell reserved for new nuclear power plants, for whom financial commitments and completion dates seem to be entirely malleable concepts (at least outside China).A pair of reactors under construction at Hinkley Point in the west of England are a case in point. The project’s chief backer Electricite de France SA warned on Wednesday of up to 2.9 billion pounds in cost overruns, meaning the bill could rise to a whopping 22.5 billion pounds. The risk of delays has also increased.The hope is that Hinkley will start delivering power at the end of 2025 and will then supply about 7% of the country’s electricity. But in view of previous delays, EDF’s assurances on this are about as cast-iron as a soggy croissant.When British trains are delayed, rail companies are known to blame the wrong kind of snow, leaves or even sunlight. EDF says “challenging ground conditions” caused the latest setback, which is worrying because you’d think digging a hole would be the easy bit.EDF’s setbacks at Hinkley are far from isolated. It has yet to get other nuclear projects using the same advanced reactor design up and running in Europe — projects in Finland and France are delayed too — and it’s facing troubling questions about technical flaws in existing French plants. The company’s struggles, which have precipitated a 27% decline in the stock this year, present a strong argument for rethinking its structure. A tentative plan to nationalize its nuclear activities and spin off its renewables and distribution networks makes more sense by the day.The cost overruns at Hinkley are a reminder too that those still hoping giant new nuclear power plants will help solve the climate crisis may be sorely disappointed. The power Hinkley will deliver, if it’s ever completed, is ludicrously expensive, even if the benefit to EDF is less now that it’s having to shoulder higher construction costs. EDF’s contract with the U.K. government guarantees a price of 92.50 pound per megawatt-hour (in 2012 prices). Last week companies competing to deliver offshore wind in the U.K. were happy to do so for about 40 pounds a megawatt hour.To be clear, it’s wise to keep existing nuclear plants running as long as possible. HBO’s dramatization of events at Chernobyl was chilling but nuclear power has a pretty decent safety record and it doesn’t produce carbon. Cutting carbon emissions to net zero is an epochal challenge and we have precious little time to do it. Decommissioning nuclear plants now, as Germany is doing, is wrong-headed because fossil fuels will have to take up some of the slack.New nuclear plants, especially the large and expensive ones EDF wants to build, are another matter. The best that could be said for Hinkley was that it would provide a valuable learning experience, building up technical knowledge and supply chains that would allow future projects to be built much more cheaply. Unfortunately the lesson could turn out to be just the opposite: New nuclear power plants won’t save us.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
European shares closed at a two-week low on Wednesday on investor fears about an impeachment inquiry into U.S. President Donald Trump and worsening rhetoric on U.S.-China trade, but shares did shave losses in late trade when Trump said a trade deal with China could happen sooner than expected. London stocks cut almost all of their losses and ended steady, boosted by a 1% slide in the pound and a rally in tobacco companies.
The Hinkley Point C project successfully delivered J-0, the completion of the nuclear island “common raft” for its first unit in June 2019, in line with the schedule announced in September 2016. Following this major milestone a detailed review of the project’s costs, schedule and organisation was performed. The project completion cost (2) is now estimated between £21.5bn and £22.5bn, an increase of £1.9bn to £2.9bn(3) compared to the previous estimate.
Despite pockets of progress and innovation since the goals among executives were agreed to in 2015, socioeconomic, geopolitical and technological uncertainties over the past four years have distracted CEOs’ sustainability efforts, says the updated United Nations Global Compact-Accenture CEO study.
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...