Report

Update on regulation

Update on regulation

REGULATION

FACT

As a reminder, the French government in autumn 2017 issued a new regulation (“Loi Hulot”) to stop the issuance of new exploration permits in France.
We went to LFDE’s meeting with the company’s lawyer Raphaël Chantelot, a partner at the law firm LPA-CGR, who presented its views on the impact.


ANALYSIS

On the positive side, the production of coal mine methane (the gas from the former coal mining galleries, aka CMM) is exempted from the restrictions.
Moreover, there are some exceptions that should protect the coalbed methane business which LFDE is developing in Eastern France. These include the possibility to prolong the duration of existing exploration permits (“PER”) and to extend the scope of concessions.


IMPACT

Our valuation integrates the regulatory risk.
Underlying
la française de l'energie

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

AlphaValue Corporate Services capitalise on the research and credit analysis expertise deployed by AlphaValue with major institutional investors at European level over the past nine years. The proprietary tools and processes enabling AlphaValue Corporate Services to establish a valuation and/or a credit risk assessment are identical to those used by AlphaValue to the benefit of its institutional clients. The only difference is the recognition that a company evaluation cannot be dissociated from the fact that the latter is paying for the service (AlphaValue Corporate Services), as opposed to the investor footing the bill (AlphaValue). AlphaValue’s research tools are characterised by the transparency of the valuation methodologies, their responsiveness to market data and by nine years’ experience of a universe numbering more than 450 European companies. Through its coverage and sector exhaustiveness, AlphaValue ranks alongside the major research houses in Europe and constitutes the only new entrant to the European space in the past decade. This significant presence is reflected in an unrivalled distribution capability via platforms commonly adopted by investors to access research: Factset, Bloomberg, Capital IQ and the numerous websites. AlphaValue is one the largest research contributors to these platforms, to the benefit of AlphaValue Corporate Services issuer clients.  The AlphaValue Corporate Services analysts are AlphaValue’s sector specialists. Their robust knowledge of the business models in their sectors enables the rapid generation of incisive, relevant research and advantageous interaction with the management teams.

Analysts
Marzio Foa

Other Reports on these Companies
Other Reports from AlphaValue Corporate Services

ResearchPool Subscriptions

Get the most out of your insights

Get in touch