European energy group EDF is considering up to €6.5bn asset sales in 2016, that might be followed by the sale of €2.6bn of assets in 2017 and €2.2bn in 2018, a level much higher of that of 2015 sales (around €550m).
The sale of assets would enable EDF to finance new projects, to reallocate capital without raising indebtedness levels (€37.5bn in mid-2015) and to meet the commitment not to disburse more than revenues as of 2018. In 2016, EDF plans to make a final investment decision on the construction of two EPR nuclear reactors in the United Kingdom (€21.7bn) and the group will consolidate Areva NP (51% of €2.7bn); a significant divestment programme might be necessary to fund the Hinkley Point C nuclear project in the UK. Two options could be considered to raise cash in 2016: on the one hand, selling its 49.9% stake in US nuclear joint venture CENG to Exelon (estimated at US$3-3.3bn in 2015); on the other hand, selling half of the capital of RTE, the French electricity transmission network operator. Additional non-strategic divestments are under consideration, as well as reducing its 80% stake in eight nuclear power plants in the United Kingdom (sale of up to 29% to retain 51% in the plants), estimated at €9bn.