EDF to Go Ahead With U.K. Hinkley Point Nuclear Plant After Capital Increase
April 25 2016 - 2:37AM
Dow Jones News
By William Horobin
PARIS-- Electricité de France SA will go ahead with the $26
billion nuclear-reactor project at Hinkley Point in the U.K. after
the debt-laden French power group approved a capital increase on
Friday, Chief Executive Jean-Bernard Lévy said Monday.
Mr. Lévy said the project--which prompted EDF Chief Financial
Officer Thomas Piquemal to quit last month over concerns about
financing--is essential for the future of the French nuclear
sector. The project will secure French jobs and technological
independence, he said.
"If we want to continue to have nuclear power in France, we have
to do Hinkley Point," Mr. Lévy said in an interview on French radio
station Europe1. "I say yes to Hinkley Point," he added.
EDF said Friday its board had approved a EUR4 billion ($4.49
billion) capital increase led by the French state before the end of
the year. EDF will also sell some EUR10 billion in assets by
2020.
Union representatives at EDF have said the Hinkley Point project
would saddle EDF with too much debt.
Mr. Lévy said he would consult with unions in the coming days or
weeks to get their opinion on the project after the announcement of
the capital increase.
"The costs are known and perfectly under control. The project is
very profitable," Mr. Lévy said.
Write to William Horobin at William.Horobin@wsj.com
(END) Dow Jones Newswires
April 25, 2016 03:22 ET (07:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.