EDF shares slump as CFO quits; Hinkley Point in focus
Updated : 09:47
Shares in EDF slumped on Monday after the French energy giant confirmed that chief financial officer Thomas Piquemal has quit.
EDF said it has provisionally appointed Xavier Girre – who joined the company as France CFO in 2015 – as senior executive vice president of group finance with immediate effect.
The news followed press reports over the weekend, with the Financial Times citing sources as saying that Piquemal was concerned a final decision on investment for a new reactor at Hinkley Point will be made too soon and could threaten the company’s financial position.
RBC Capital Markets' utilities analyst Martin Young said that on a standalone basis, it might be possible to argue that Hinkley Point C might have economic merit given the generosity of a 35-year CFD at £92.50 index-linked.
However, he pointed out that the European electricity industry faces unprecedented challenges and change.
“EDF is not immune from these challenges, and we believe needs to act to a greater degree than has been proposed.
“Against that backdrop, to proceed with Hinkley Point C at this juncture would be verging on insanity. M Piquemal’s resignation arguably suggests exactly that.”
At 0948 GMT, EDF shares were down 6.4% to €10.16.