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PRESS RELEASE
14 May 2019 |
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Quarterly
Financial Information at 31 March 2019
Sales up 1.7% ([1])
Confirmation of 2019 targets and 2019-2020
ambitions
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Group sales €21.0bn
+1.7% org. (1) |
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Highlights |
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Acceleration of the Solar Power Plan in France:
acquisition on 1 April 2019 of LUXEL Group, which holds a 1GWp
portfolio (of which ~90MWp in operation)
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Acquisition in China of a majority stake in a
77MWp rooftop photovoltaic assets portfolio
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Award of a 20-year electricity purchase contract
for a 60MWp solar plant near Athens
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industrial clients: installation, operation and
maintenance of hydrogen production plants
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public and professional mobility providers:
service stations to provide hydrogen to recharge fleets of
commercial vehicles
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Operational data |
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Electricity
generation
Nuclear France 111.8TWh
Nuclear United Kingdom 12.6TWh
Group Renewables 15.7TWh
of which Hydropower France ([2])
9.9TWh |
-1.0%
-16.4%
-23.7%
-32.2% |
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2019 targets ([3])
including
IFRS 16 impact |
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EBITDA ([4])
€16.0 - 16.7bn
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Reduction in operating expenses ([5]) ~
€1.1 bn vs. 2015
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Cash flow ([6]) excluding
HPC and Linky >€600m
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2019-2020 ambitions
(3)
including
IFRS 16 impact
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Total net investments ([7]) excluding
acquisitions and "Group 2019-2020 disposals" ~
€15 bn/year
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Group 2019-2020 disposals €2 to 3bn
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Net financial debt/EBITDA (4) <=
2.7x
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Dividend: target payout ratio of Net income
excluding non-recurring items ([8]) 45
- 50%
With the French State committed to scrip for the
balance of the 2018 dividend and dividends relating to 2019 and
2020 full year |
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Change in EDF
group sales
(in millions of Euros) |
Q1 2018 |
Q1
2019 |
% |
% organic |
France - Generation and supply activities |
7,956 |
8,145 |
+2.4 |
+2.2 |
France - Regulated activities |
5,167 |
5,033 |
-2.6 |
-2.6 |
EDF Renewables |
379 |
417 |
+10.0 |
+2.9 |
Dalkia |
1,223 |
1,323 |
+8.2 |
+7.8 |
Framatome |
721 |
706 |
-2.1 |
-4.0 |
United Kingdom |
2,577 |
2,501 |
-2.9 |
-4.2 |
Italy |
2,252 |
2,372 |
+5.3 |
+1.2 |
Other international |
666 |
795 |
+19.4 |
+18.9 |
Other activities |
751 |
882 |
+17.4 |
+18.5 |
Inter-segment
eliminations |
(1,246) |
(1,208) |
-3.0 |
-3.0 |
Total Group |
20,446 |
20,966 |
+2.5 |
+1.7 |
The Group's first quarter 2019
sales amounted to nearly €21.0 billion, up organically by 1.7%
compared to the first quarter 2018.
This change was mainly driven by
the France - Generation and supply activities segment in connection
with favourable market conditions, the growth of the Group's energy
services activities and strong performance by EDF Trading. Sales
were also negatively impacted by activities in the United Kingdom
due to the decrease in nuclear output in connection with the
extension of plant outages and by the France - Regulated activities
due to mild weather.
Change in Group
sales ([1]) by
segment
France -
Generation and supply activities
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
7,956 |
8,145 |
+2.2 |
Sales in France - Generation and
supply activities in the first quarter of 2019 amounted to €8.1
billion, up 2.2% in organic terms compared to the first quarter of
2018.
Nuclear output amounted to
111.8TWh, down 1.1TWh compared to the first quarter of 2018, mainly
due to a modulation of generation in a context of warmer
temperatures and a higher volume of outages.
Hydropower output ([2]) stood at
9.9TWh, down 32.2% (-4.7TWh) compared to the first quarter of 2018
due to less favourable hydrological conditions and to resource
optimisation under consideration of the price environment.
The mild temperatures, compared to
the first quarter of 2018, led to a 3.7TWh drop in end customer
consumption over the quarter. The financial impact was limited to
-€11 million compared to the first quarter of 2018, which had been
strongly affected by mild weather in January leading to resales on
low-priced markets.
The changes of regulated sale
tariffs for electricity ([3]) (for the
part excluding the delivery component) had a negative impact of
around €54 million due to the end of the tariff adjustment, in the
absence of the tariff increase originally scheduled for 1 February
2019.
Downstream market conditions
([4]) had a
favourable effect of an estimated €331 million thanks to positive
price effects correlated in particular to price trends on the
wholesale forward markets.
The balance of purchases and sales
on the wholesale market, including the energy component to end
customers, had a negative impact on sales, estimated at €290
million, due to a lower sales volume.
Sales benefited from a positive
spot price effect in January for the resale of the purchase
obligations in the amount
of €101 million (neutral effect on EBITDA as the CSPE mechanism
offsets expenses linked to purchase obligations).
France -
Regulated activities ([5])
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
5,167 |
5,033 |
-2.6 |
Sales in the France - Regulated
activities segment in the first quarter 2019 amounted to €5.0
billion, down 2.6% in organic terms compared to the first quarter
2018.
The drop in volumes delivered in
connection with mild weather, particularly in March, had an
estimated negative impact of €170 million compared to the first
quarter of 2018.
Sales benefited from the positive
move in distribution tariffs ([6]) for an
estimated €19 million.
Moreover, price effects linked in
particular to changes in the portfolio structure had an estimated
favourable impact
of €17 million.
Renewable
Energies
EDF Renewables
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
379 |
417 |
+2.9 |
Sales for EDF Renewables amounted
to €417 million, up 2.9% in organic terms compared to the first
quarter of 2018.
This trend was driven by more
favourable price effects and wind conditions, while the volumes
produced were generally stable (4TWh or -0.1TWh compared to the
first quarter of 2018) due to the disposals made at the end of 2018
and the beginning of 2019.
Total installed net capacity was
broadly stable compared to the end of December 2018 and stood at
8.3GW.
On the other hand, the gross
portfolio of projects under construction stood at a record level of
3.5GW gross (including 1.4GW in solar) at the end of the first
quarter of 2019, i.e. +1.1GW compared to the end of December
2018.
Group Renewables ([7])
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% |
% organic |
Sales
([8]) |
1,307 |
1,252 |
-4 |
-5 |
Sales for all Group Renewables
activities amounted to €1.3 billion in the first quarter of 2019,
down 5% from the first quarter of 2018 mainly due to lower
hydropower generation in France, partially offset by the positive
price effects of the commissioned wind power capacity.
Energy
Services
Dalkia
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
1,223 |
1,323 |
+7.8 |
Dalkia's sales amounted to €1.3
billion, up 7.8% in organic terms compared to the first quarter of
2018.
This improvement reflects the
favourable trends in service contracts review indexes, the rise in
fuel prices and sales development. The commercial dynamic continued
with the creation of a new district heating network in
Charleville-Mézières in collaboration with the foundries of a PSA
plant.
Group Energy Services ([9])
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% |
% organic |
Sales |
1,516 |
1,689 |
+11 |
+8 |
Sales in Group Energy Services
amounted to €1.7 billion, up 8% in organic terms compared to the
first quarter of 2018. They benefited in particular from the
organic growth of Dalkia and Imtech.
The acquisition of Zephyro, an
Italian operator active in the energy efficiency sector and in the
supply of integrated energy management solutions, contributed to
the development of energy services.
Framatome
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
721 |
706 |
-4.0 |
Framatome's sales amounted to €0.7
billion in the first quarter of 2019, down 4.0% organically.
This change is mainly due to
timing effects on the first quarter of 2019 related to the
year-on-year distribution of fuel assembly deliveries.
On the "large
projects business", sales experienced a drop in activity with
Taishan, whereas Hinkley Point C is ramping up its activities.
The "Installed
base business" was down slightly in comparison with its strong
performance in the first quarter of 2018 in France.
United
Kingdom
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
2,577 |
2,501 |
-4.2 |
In the United Kingdom, sales of
€2.5 billion were down by 4.2% in organic terms compared to the
first quarter 2018.
The decrease in sales was mainly
due to the decline in nuclear generation and to a lesser extent to
the suspension of the capacity market and the SVT (Standard
Variable Tariff) price cap.
Nuclear output amounted to
12.6TWh, down 2.5TWh from the first quarter of 2018 due to the
Hunterston B inspection and to the extension of Dungeness B
outage.
Supply activity benefited from the
good resilience of the residential customer portfolio, which is
stabilising in a still very competitive environment, and from
increasing sales volumes in the business customer segment.
Italy
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
2,252 |
2,372 |
+1.2 |
In Italy, sales amounted to €2.4
billion, up 1.2% in organic terms compared to the first quarter
2018.
Sales from the electricity
business (+€122 million in organic terms) grew thanks to higher
sales volumes in the industrial customers segment and positive
price effects.
In gas activities, sales were down
(-€109 million in organic terms) due to a decrease in volumes sold
on wholesale markets which was partially offset by an increase in
volumes sold to industrial customers and a positive price
effect.
Exploration-production activity
was up (+€15 million in organic terms) in connection with the
positive Brent price effect in Euros.
Other
international
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
666 |
795 |
+18.9 |
Sales in Other international
amounted to nearly €0.8 billion, up 18.9% in organic terms compared
to the first quarter of 2018.
In Belgium, sales increased by €59
million organically, reflecting in particular a rise in electricity
and gas prices across all segments, partially offset by a slight
decrease in volumes sold to residential customers due to mild
weather. Wind capacity increased to 448MW, or +1.6% compared to the
end of December 2018.
In Brazil, sales increased by €57
million in organic terms due to the positive effect of the annual
review of EDF Norte Fluminense's power purchase agreement
tariff that occurred at the end of 2018 and due to the impact of
the change (without impact on EBITDA) of the ICMS([10])
tax.
Other
activities
(in millions of Euros) |
Q1 2018 |
Q1 2019 |
% organic |
Sales |
751 |
882 |
+18.5 |
Sales in Other activities amounted
to nearly €0.9 billion, up 18.5% in organic terms compared to the
first quarter of 2018.
Sales at EDF Trading were up €48
million organically. EDT Trading continues to benefit from positive
volatility and took advantage of price conditions in European
electricity and gas markets. The activities related to LNG
(Liquefied Natural Gas) and LPG (Liquefied Petroleum Gas) also
contributed to this performance in the first quarter of 2019.
Sales in the gas business increased
by more than €176 million in organic terms in a favourable context
for the LNG activity and in relation to better use of the Group's
capacities.
Main events
([11]) since
the press release of 15 February 2019
Major Events
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Flamanville EPR update: a detailed update of the
schedule and construction cost of the Flamanville EPR will be given
after the ASN ruling has been published (see press release of 11
April 2019).
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EDF, EBM and EOS agreed on the disposal by EDF
of its 25% stake in Alpiq to EBM and EOS (see press release of 5
April 2019).
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Notice of the Combined Shareholders Meeting on
16 May 2019 and appointments to EDF's Board of Directors (see press
release of 5 April 2019).
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EDF launched Hynamics, a subsidiary to produce
and market low-carbon hydrogen (see press release of
2 April 2019).
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EDF and BBVA signed a €300 million sustainable
revolving credit facility (see press release of 22 march
2019).
New investments, partnerships and
investment projects
Development of renewable energies,
EDF Renewables ([12])
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EDF Renewables secured a 20-year Power Purchase
Agreement following auctions in Greece for a future 60 MWp
solar plant located near Athens (see press release of 6 May
2019).
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EDF Renewables and WiSEED launched a
participatory financing for the Toucan 2 solar power project with
storage in Guyana (see press release of 6 May 2019).
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Eolien Maritime France selected Siemens Gamesa
Renewable Energy to provide turbines for two French offshore wind
energy projects (see press release of 16 April 2019).
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EDF Renewables completed the acquisition of
LUXEL Group, a French utility that develops and operates solar
projects (see press release of 1 April 2019).
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EDF boosted its activities in China with
agreements to build and operate two offshore wind farms and to
optimize heating and air-conditioning networks in the city of Wuhan
(see press release of 25 March 2019).
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EDF Renewables strengthened its presence in
distributed solar power in China with its partner Asia Clean
Capital (see press release of 21 March 2019).
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EDF Renewables pursues its expansion in wind and
solar energy in the United States (see press release of
12 March 2019).
Framatome ([13])
Other significant events
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The EDF group and Logis Cévenols inaugurated the
largest collective self-consumption operation in France (see press
release of 7 May 2019).
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Tomorrow's Connected Community: BBOXX unveiled
its vision for the "community of the future" for the developing
world (see press release of 24 April 2019).
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EDF Group launched the 2019 employee reserved
offer "ERO 2019" (see press release of 17 April 2019).
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The EDF group and METRO France signed a new
contract for the supply of wind energy (see press release of
25 March 2019).
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EDF welcomed the fact that consumers' interests
were defended against unfair competition practices (see press
release of 14 March 2019).
A key player in energy transition,
the EDF Group is an integrated electricity company, active in all
areas of the business: generation, transmission, distribution,
energy supply and trading, energy services. A global leader in
low-carbon energies, the Group has developed a diversified
generation mix based on nuclear power, hydropower, new renewable
energies and thermal energy. The Group is involved in supplying
energy and services to approximately 39.8 million customers
(1), 29.7
million of which are in France. It generated consolidated sales of
€69 billion in 2018. EDF is listed on the Paris Stock Exchange.
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The customers were counted at
the end of 2018 per delivery site; a customer
can have two delivery points: one for electricity and another for
gas.
Disclaimer
This presentation
does not constitute an offer to sell securities in the United
States or any other jurisdiction.
No reliance should be placed on the accuracy,
completeness or correctness of the information or opinions
contained in this presentation, and none of EDF representatives
shall bear any liability for any loss arising from any use of this
presentation or its contents. The quarterly financial information
is not subject to an auditor's report.
The present document may contain forward-looking
statements and targets concerning the Group's strategy, financial
position or results. EDF considers that these forward-looking
statements and targets are based on reasonable assumptions as of
the present document publication, which can be however inaccurate
and are subject to numerous risks and uncertainties. There is no
assurance that expected events will occur and that expected results
will actually be achieved. Important factors that could cause
actual results, performance or achievements of the Group to differ
materially from those contemplated in this document include in
particular the successful implementation of EDF strategic,
financial and operational initiatives based on its current business
model as an integrated operator, changes in the competitive and
regulatory framework of the energy markets, as well as risk and
uncertainties relating to the Group's activities, its international
scope, the climatic environment, the volatility of raw materials
prices and currency exchange rates, technological changes, and
changes in the economy.
Detailed information regarding these uncertainties
and potential risks are available in the reference document
(Document de référence) of EDF filed with the Autorité des marchés
financiers on 15 March 2019, which is available on the AMF's
website at www.amf-france.org and on EDF's website at
www.edf.fr.
EDF does not undertake nor does it have any
obligation to update forward-look
This press release is certified. You can check that it's
genuine at medias.edf.com
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EDF SA
22-30, avenue de Wagram
75382 Paris cedex 08
Share capital of 1,505,133,838 euros
552 081 317 R.C.S. Paris
www.edf.fr |
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CONTACTS
Press: +33 (0) 1 40 42 46 37
Analysts and investors: +33 (0) 1 40 42 40
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([1]) Breakdown of sales across the segments, before
inter-segment eliminations.
([2]) Hydropower, excluding island activities before
deduction of pumped volumes. For information, after deduction of
pumped-storage hydropower volumes: 12.8TWh in Q1 2018 and 8.3TWh in
Q1 2019.
([3]) Price effects on customers at regulated sales
tariffs, excluding the Energy Savings Certificates (EEC) component
in the tariff "stacking". Change in tariffs on 1 August 2018
of -0.5% for blue residential and +1.1% for
non-residential.
([4]) Excluding the EEC component in the market
offering.
([5]) Regulated activities including Enedis, Électricité
de Strasbourg and island activities.
([6]) Upward adjustment of the tariffs of the low
voltage customers domain <= 36kVA of 1.16%
and indexation of TURPE 5 distribution of -0.21% at 1 August
2018.
([7]) Group Renewables includes EDF
Renewables and the Group hydraulic generation, as well as the
renewable activities of EDF Luminus and Edison.
([8]) For the renewable energy
generation optimized within a larger portfolio of generation
assets, in particular relating to the French hydro fleet after
deduction of pumped volumes, sales are estimated, by convention, as
the valuation of the output generated at spot market prices (or at
purchase obligation tariff) without taking into account hedging
effects, and include the valuation of the capacity, if
applicable.
([9]) Group Energy Services include Dalkia, Citelum,
CHAM and service activities of EDF Energy, Edison, EDF Luminus and
EDF SA. They consist in particular of street lighting, heating
networks, decentralised low-carbon generation based on local
resources, energy consumption management and electric
mobility.
([10]) Tax on the Movement of Goods and Services in
Brazil
([11]) The complete list of press releases is available
on the EDF website: www.edf.fr
([12]) The complete list of EDF Renewables'
press releases is available on the website
www.edf-renouvelables.com
([13]) The complete list of Framatome press releases is
available on the website: www.framatome.com
Footnotes to the
first page
([1]) Organic change at comparable scope and exchange
rates.
([2]) Hydropower, excluding island activities before
deduction of pumped volumes. For information, after deduction of
pumped-storage hydropower volumes: 12.8TWh in Q1 2018 and 8.3TWh in
Q1 2019.
([3]) At constant legal and regulatory framework in
France.
([4]) On the basis of the scope and exchange rates at 1
January 2019 and of an assumption of a 395TWh France nuclear
output. At prevailing price conditions beginning of February 2019
(around €50/MWh) for the unhedged 2020 France volumes.
([5]) Sum of personnel expenses and other external
expenses. At comparable scope and exchange rates. At constant
pension discount rates. Excluding change in operating expenses of
the service activities.
([6]) The impact of IFRS 16 on cash-flow is derived
from the increase in EBITDA, decreased by financial interests on
the IFRS 16 net financial debt
([7]) In accordance with the Group's anticipations regarding the Flamanville 3 project
completion costs and schedule. A detailed update of the schedule
and construction cost of the Flamanville EPR will be given after
the ASN ruling has been published.
([8]) Adjusted for the remuneration of hybrid bonds
accounted for in equity.
EDF Quarterly Financial Information
at 31 March 2019
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: EDF via Globenewswire