Primary knowledge:
market cap: 40 billion euro
yearly income (common of final 5 years): 70.03 billion euros
yearly earnings (common of final 5 years): 2.04
EDF is a partly state owned electrical energy firm in France. Their predominant vitality supply: nuclear energy. 90 % of their capability is nuclear. They received a nuclear technology capability of 61 GW. Usually nuclear is used as a base load and at full capability. Since nuclear makes up nearly all the french electrical vitality provide they received much more capability than they normally used to have the ability to react to peak calls for. Their capability issue was normally within the 70 % vary , worldwide it’s 93 % on common.
EU carbon costs hit 60€/t. 0.572 kg CO2 are emitted per kWh for fuel energy vegetation, coal is even a lot worse. So it prices 0.034 € (0.000572 t* 60 €/t = 0.034 €) simply to emit the Carbon for fuel energy.
The prevailing EDF reactors function at a Levelized Price of Electrical energy (LCOE) of 0.03 € per kWh (35.15 $ per MWh web page 59 within the linked pdf). As you possibly can see on web page 57 of the linked paper: for coal and fuel vegetation gasoline prices and Carbon prices make up greater than 50 % of their general prices. For nuclear it’s lower than a 3rd, so working nuclear at very excessive capability makes a variety of economical sense.
Remember the fact that some electrical energy corporations purchased co2 certificates for years upfront.
The cherry on the cake: Germany will shut 3 of its 6 remaining nuclear energy vegetation on the 1st January 2022. So one other 5.5 % Germanys electrical energy manufacturing shall be gone. The final 3 nuclear energy vegetation will shut until 2023.
bull case:
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With rising CO2 certificates costs EDF nuclear energy quickly will get cheaper than fuel/coal energy vegetation. Each time France doesn’t want a few of its obtainable nuclear capability, it’s going to export much more energy than now. Their present capability issue is 70 % (93 % is the worldwide common), if they will push that to 85 % throughout peak demand and promote these for 40 €/MWh they will improve their income by 3.28 billion {dollars}, which is able to largely be revenue since working and gasoline value are small for nuclear energy.
501.9TWh electrical energy output, 76.5% of this nuclear -> 383.95 TWh nuclear output
383.95 TWh *15 %(*100/70) = 82,27 TWh of further energy offered
8,27 *10^7 MWh * 40 €/MWh = 3.28 billion {dollars}
bear instances:
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A really chilly + lengthy winter: France primarily depends on electrical energy for heating, a 1 °C drop in temperature means 2.3 GW are wanted moreover for heating (https://www.reuters.com/article/europe-power-supply-idUSL5E8DD87020120214). EDF not solely owns the facility vegetation, it’s also the contracting companion of the person residence owners- costs are mounted their. So after they have to purchase a variety of further energy from different vitality corporations throughout worth peaks, this might result in losses.
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As a french you mai know Flamanville, as a UK citizen chances are you’ll know Hinkley Level C. Each nuclear vegetation are owned by EDF. They’re getting much more costly than anticipated. This isn’t uncommon for brand spanking new kinds of energy vegetation, however they should minimize prices on new initiatives to remain aggressive.
