Edf: 2019 half-year results. Stable EBITDA. Confirmation of 2019
targets and 2019-2020 ambitions.
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PRESS RELEASE 26 July 2019 |
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2019 half-year
resultsStable EBITDA Confirmation
of 2019 targets and 2019-2020 ambitions
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Key figures of the 2019 half-year results (1) |
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Deployment of CAP 2030 |
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EBITDA |
€8.3bn +0.1% org.(2) |
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Renewable energies
- Major new developments in offshore wind energy:
- win of the Dunkirk offshore wind project (600MW)
- definitive approval by the Council of State of administrative
permits for Saint-Nazaire, Fécamp and Courseulles-sur-Mer offshore
wind farms projects
- win of the first phase of a solar project in Morocco (800MW)
with an innovative hybrid solar-storage technology
- commissioning of the EDF group's first solar power plant in
Mexico (119.6MWp)
- signature of four electricity sale contracts for 716MWp of
solar in India (50/50 JV with Total Eren)
- Record level of EDF Renewable’s portfolio under construction:
4GW gross capacity at the end of June 2019
Customer-focused innovation
- Launch of the "Mes Jours Zen" offer
- Acceleration of sales under market offers: 350,000 customers
already signed up
- Linky: 20 millionth smart meter installed
- New concession contract model : signing (or favorable
deliberation to conclude) by 103 conceding authorities with EDF and
Enedis
- Dalkia
- Signing of a multiservices contract with Safran
- New public service delegation for urban heating on
Grande Île in Vaulx-en-Velin and Villeurbanne (15.5
years)
- Launch of DREEV, a subsidiary dedicated to smart charging
solutions in Europe
International development
- Decentralised energy: Acquisition of energy2market (e2m), a
major player in energy aggregation in Germany
- Extension of the partnership with JERA to LNG activities
- India (smart grid): Successfully completed test phase and
launch of the general deployment phase of 500,000 smart meters to
come (total programme of 5mln over 18 months).
New nuclear
- Hinkley Point C: J0 milestone (pouring of the nuclear safety
concrete and completion of the common raft for Unit 1) reached on
schedule
- Taishan 2 EPR in China: First grid connection on 23 June 2019
on track for commercial commissioning
- Flamanville 3: Following the French Nuclear Safety Authority's
decision of 19 June 2019 on penetration welds, three scenarios are
under investigation.
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Net income excluding non-recurring items
(3) |
€1.4bn -19.4% |
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Net income – Group share |
€2.5bn +44.7% |
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Electricity generationNuclear France
203.7TWhNuclear United Kingdom 24.5TWhGroup
Renewables 31.4TWh o/w Hydropower France
20.1TWh |
+0.5%-18.8%-23.8% -31.6% |
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Strengthened financial structure
- Completion of the disposal of EDF's 25% stake in Alpiq valued
at €434m
- Signing of a binding agreement to sell Edison's Exploration and
Production activities for an amount up to c. US $1bn (4)
- Signing of two new bilateral sustainable revolving credit
facilities for €300 million each raising the total of
sustainability-linked credit facilities to over €5 billion
- Balance of the 2018 dividend: 93.7% of rights were exercised in
favour of a payment in shares
- Success of the employee shareholding operation with the
subscription of more than 40,000 beneficiaries
OPEX reduction in line with the trajectory:
€1,072m vs. 2015Control of net financial debt
- €37.4bn under IFRS 16 (slight decline excluding IFRS 16): net
financial debt/EBITDA ratio of 2.4x (5)
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2019 targets (6) including IFRS 16
impact |
- EBITDA (7): €16.0 – 16.7bn
- Decrease in OPEX (8): ~ €1.1bn vs 2015
- Cash flow excluding HPC and Linky: >€600m
(9)
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2019-20 ambitions(6)
including IFRS 16 impact |
- Total net investments (10) excluding acquisitions and ‘2019-20
Group disposals’: ~ €15bn/year
- 2019-2020 Group disposals: €2 to 3bn
- Net financial debt/EBITDA (7) (10) : ≤ 2.7x
- Dividend: target payout ratio of Net income excluding
non-recurring items (11): 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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EDF’s Board of Directors meeting on 25 July
2019, under the chairmanship of Jean-Bernard Lévy, approved the
condensed consolidated financial statements at 30 June 2019.
Jean-Bernard Lévy, EDF’s Chairman and CEO stated: “The first
half-year results in 2019 are in line with our forecasts. Bolstered
by a strengthened balance sheet, the Group is continuing its
deployment of the CAP 2030 strategy and confirms its annual
targets. The professionalism of our teams has made possible to
achieve major milestones in the Grand Carenage, HPC and
Taishan projects, and to bring about some major successes in
the solar and off-shore wind power sectors. At the same time,
the Group is constantly innovating for energy transition, paving
the way for new offers that are totally in step with our clients’
lifestyles.“
Change in EDF Group’s
results
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(in millions of euros) |
H1 2018 (12)restated |
H1
2019 (1) |
Change (%) |
Organic change (%) |
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Sales |
34,962 |
36,469 |
+4.3 |
+3.7 |
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EBITDA |
8,062 |
8,346 |
+3.5 |
+0.1 |
| EBIT |
3,595 |
3,672 |
+2.1 |
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| Net
income – Group share |
1,726 |
2,498 |
+44.7 |
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| Net
income excluding non-recurring items (3) |
1,739 |
1,402 |
-19.4 |
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Change in EDF Group’s EBITDA
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(in millions of euros) |
H1 2018
(12)restated |
H1
2019 (1) |
Organic change (%) |
| France
- Generation and supply activities |
3,578 |
3,971 |
+6.5 |
| France
- Regulated activities |
2,663 |
2,578 |
-6.3 |
| EDF
Renewables |
360 |
405 |
+1.9 |
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Dalkia |
159 |
195 |
+13.2 |
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Framatome |
86 |
74 |
-43.0 |
| United
Kingdom |
485 |
128 |
-75.9 |
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Italy |
238 |
328 |
+28.2 |
| Other
international |
117 |
166 |
+35.9 |
| Other
activities |
376 |
501 |
+55.9 |
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Group total |
8,062 |
8,346 |
+0.1 |
EBITDA in first-half 2019 was stable on
first-half 2018, benefitting from favourable market conditions in
France and a very strong performance by EDF Trading. However, it
was negatively impacted by the unfavourable trend in TURPE 5
distribution tariff indexation and increase in expenses for
contributions to the Electricity Equalisation Fund in French
regulated activities, and by the deterioration of conditions in the
UK, (introduction of a cap on standard variable tariffs (SVTs),
suspension of capacity revenues and downturn in nuclear
generation).
Footnotes to the first and second
pages(1) The financial statements at 30 June 2019 have
been prepared in accordance with IFRS 16 as from 1 January 2019
(use of the modified retrospective method). Comparative figures
have not been restated in accordance with the transitional
provisions of the standard.(2) Organic change at comparable scope,
IFRS 16 standard and exchange rates.(3) Net income excluding
non-recurring items is not defined by IFRS and does not appear
directly in the Group's consolidated income statement. It
corresponds to net income excluding non-recurring items, excluding
net changes in fair value on energy and raw materials derivatives,
trading activities and net changes in the fair value of debt
securities and shareholders' equity net of tax.(4) Enterprise value
of US$750m, with an additional consideration of US $100m contingent
on the commissioning of the Cassiopea gas development project in
Italy. Edison could also receive royalties associated with further
potential developments in Egypt, which would bring the aggregate
value to c. US $930m.(5) Net financial debt increased by €4.5bn in
connection with the implementation of IFRS 16 on 1 January 2019.(6)
With unchanged legal and regulatory environment in France. (7)
Based on the scope and exchange rates at 01/01/2019 and assumptions
for nuclear generation in France of 395TWh.(8) Sum of personnel
expenses and other external consumption. At comparable scope, IFRS
16 and exchange rates. At constant pension discount rates.
Excluding changes in operating expenses from service
activities. (9) The impact of IFRS 16 on cash-flow is derived
from the increase in EBITDA, reduced by financial interests on the
IFRS 16 net financial debt. (10) For 2020: depending of the
impact, currently under assessment, of the decision of the French
Nuclear Authority of 19 June 2019 on the schedule and completion
cost of the Flamanville 3 project.(11) Adjusted for the
remuneration of hybrid loans recognised in equity.(12) The disposal
of Edison's Exploration and Production (E&P) activity was
classified as a discontinued operation within the meaning of IFRS 5
as of 1 January 2019. The data published for the 2018 financial
year have been restated for the impact of the presentation of the
E&P activity in the process of being sold.
Operational performance
Nuclear output in France totalled 203.7TWh, up
1.1TWh compared to first-half 2018 owing to improved fleet
availability.Hydropower output in France came to
20.1TWh ([1]), down 31.6% (-9.3TWh) on first-half 2018. This
can be attributed to particularly unfavourable hydro conditions,
with first-half 2019 ranking as the second driest half-year over
the last 30 years.Nuclear output in the United Kingdom amounted to
24.5TWh, down 5.7TWh compared with first-half 2018. The contraction
resulted from the extension of Hunterston B and Dungeness B
outages.In Italy, electricity generation and ancillary services
increased significantly over the first half of the year.In Belgium,
both nuclear and wind power generation increased.EDF Renewables
output amounted to 7.5TWh. As expected, the total was down slightly
(by 0.3TWh) compared to the first-half 2018 owing to the disposals
completed in late-2018 and early-2019. The gross portfolio of
projects under construction at 30 June 2019 reached a record level
of 4GW, equally balanced between onshore wind power and solar
power.
Net income
The financial result corresponds to a financial
expense of €130m in first-half 2019, an improvement of €1,488m
compared to the first-half 2018. This resulted primarily from the
positive variation in the fair value of the portfolio of dedicated
assets in line with the performance of the equity and bond markets
in the first half of the year. This variation in fair value is not
included in the calculation of net income excluding non-recurring
items.Net income excluding non-recurring items totalled €1,402m at
end-June 2019, down €337m compared to the first-half 2018, owing in
particular to an increase in financial expenses and net
depreciation and amortisation consistent with the trend in
investments in the nuclear segment.Net income – Group share came to
€2,498m in first-half 2019, up 44.7% owing to the financial
result.
Cash flow and net financial
debt
Net investments excluding 2019-2020 disposals,
Hinkley Point C and Linky (2) amounted to €5,695m in
first-half 2019, for an increase of €559m. This can be attributed
mainly to an increase in investments in nuclear
maintenance.Operating cash flow stood at €2,505m, down €1,182m
compared to the first-half 2018, the consequence notably of an
increase in investments and a lower contribution from the variation
in the working capital requirement.Group cash flow ([3])
totalled €1,049m, down €497m, stabilising the group's net financial
debt for two consecutive half year.
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31/12/2018 |
30/06/2019 ([4]) |
| Net
financial debt([5]) (in billions of euros) |
33.4 |
37.4 |
| Net
financial debt/EBITDA([6]) |
2.2x |
2.4x |
The Group’s net financial debt stood at €37.4bn
at end-June 2019. Excluding the impact of IFRS 16, it was down
€506m compared with 31 December 2018.
Main Group results by
segment
France – Generation and supply
activities
| (in millions of euros) |
H1
2018 |
H1
2019 ([7]) |
Organicchange (%) |
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sales (8) |
13,652 |
14,299 |
+4.5 |
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EBITDA |
3,578 |
3,971 |
+6.5 |
Sales in France - Generation and supply
activities in the first half of 2019 amounted to €14,299 million,
up +4.5% in organic terms compared to the first half of 2018.
The contribution to Group EBITDA by the segment
amounted to €3,971 million, +6.5% in organic terms compared to
the first half of 2018.
The substantial decrease in hydropower output
(-8.4TWh (9)), only very slightly offset by a rise in nuclear
output (+1.1TWh), had an unfavourable impact on EBITDA estimated at
-€342 million.
Better conditions on the wholesale markets had a
positive effect estimated at +€114 million.
On the downstream market (10), the positive
price movements on market-price offers more than made up for
erosion of market shares (-8.4TWh including losses of volumes for
customers on the regulated sales tariffs). This resulted in a
positive impact of +€305 million compared to the first half of
2018.
The weather in the first half of 2019 had a
favourable impact estimated at+ €40 million.
Regarding regulated sales tariffs (11), the
tariff rise at 1 June 2019 and the tariff reduction in August 2018
(reflecting the completion of the repayment of the 2012-2013 tariff
catch-up component) led to an estimated rise in EBITDA of
+€26 million (excluding energy savings certificates) compared
to the first half of 2018.
Operating expenses ([12]) were reduced by €173
million (-4.2%).
A number of factors had a total effect of -€85
million on EBITDA, principally the rise in costs to meet energy
savings certificates obligations partially offset by net reversals
from provisions.
France – Regulated
activities (13)
| (in
millions of euros) |
H1
2018 |
H1
2019 ([14]) |
Organic change (%) |
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Sales (15) |
8,405 |
8,307 |
-1.2 |
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EBITDA |
2,663 |
2,578 |
-6.3 |
Sales in France - Regulated activities in the
first half of 2019 amounted to €8,307 million, down -1.2% in
organic terms compared to the first half of 2018.
EBITDA for the segment stood at €2,578 million,
-6.3% in organic terms compared to the first half of 2018.
EBITDA was affected by indexations on the TURPE
5 tariffs (16) with an estimated impact of -€68 million,
and the unfavourable weather effect, with an estimated impact of
-€36 million.
Other factors had a combined estimated negative
impact of -€128 million on EBITDA: they mainly related to an
increase in expenses for contributions to the Electricity
Equalisation Fund ([17]), and the negative effect of changes in
provisions for employee benefit obligations.
This evolution is partially offset by a growth
in the grid connection services (+€21 million) and the decrease of
operating expenses ([18]) (-€43 million).
Renewable energies
EDF Renewables
|
(in millions of euros) |
H1
2018 |
H1
2019 ([19]) |
Organic change (%) |
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Sales (20) |
735 |
776 |
+2.2 |
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EBITDA |
360 |
405 |
+1.9 |
| of which
EBITDA generation |
435 |
472 |
+ 2.4 |
Sales in EDF Renewables in the first half of
2019 amounted to €776 million, up 2.2% in organic terms compared to
the first half of 2018.
EDF Renewables’ contribution to Group EBITDA was
€405 million, corresponding to organic growth of +€7 million
(+1.9%) compared to the first half of 2018.
EBITDA from generation recorded an organic
increase of 2.4% compared to the first half of 2018, despite the
disposals completed in late 2018 and early 2019. This change is
primarily attributable to price effects and more favourable wind
conditions.
Development and sales of structured assets were
supported by disposals undertaken in the early part of the year,
notably in US and Poland.
In addition, development costs and head office
costs rose, particularly to support growth.
At 30 June 2019, the net installed
capacities totalled 8GW, stable overall from 31 December 2018. The
gross portfolio of projects under construction at 30 June 2019
reached a record level of 4GW, equally balanced between onshore
wind power and solar power.
Group Renewables ([21])
|
(in millions of euros) |
H1
2018 |
H1
2019 (1) |
Change (%) |
Organic change (%) |
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Sales (2) |
2,352 |
2,134 |
-9 |
-11 |
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EBITDA |
1,106 |
881 |
-20 |
-24 |
| Net
investissements |
(424) |
(489) |
+15 |
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EBITDA for all of Group Renewables amounted to €881
million in the first half 2019, down 24% in organic terms owing to
unfavourable hydro conditions in first-half 2019.
Energy services
Dalkia
|
(in millions of euros) |
H1
2018 |
H1
2019 ([22]) |
Organic change (%) |
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Sales (23) |
2,009 |
2,152 |
+6.4 |
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EBITDA |
159 |
195 |
+13.2 |
Sales in Dalkia in the first half of 2019
amounted to €2,152 million, up 6.4% in organic terms compared to
the first half of 2018.
Dalkia’s EBITDA for the first half of 2019 was
€195 million, corresponding to year-on-year organic growth of
€21 million (+13.2%).
The growth in EBITDA reflects the dynamic sales
activity, particularly in heat networks and energy performance
contracts (signing of a new multiservice contract with Safran
covering 26 sites, a new public service delegation for urban
heating in Grande Île at Vaulx-en-Velin and Villeurbanne for
15.5 years). It also benefited from the commissioning at the
end of 2018 of several cogeneration installations at industrial
sites.
Furthermore, this growth was driven by sales of
energy savings certificates in excess of the regulatory
obligations, which were concentrated in the first half of the year
whereas in 2018 they took place in the second half of the year.
Group Energy Services (24)
|
(in millions of euros) |
H1
2018 |
H1
2019 (1) |
Change (%) |
Organic change (%) |
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Sales (2) |
2,605 |
2,873 |
+10 |
+6 |
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EBITDA |
214 |
216 |
+1 |
+7 |
| Net
Investissements |
(99) |
(107) |
+8 |
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EBITDA for Group Energy Services amounted to
€216 million in the first half of 2019, up 7% in organic change
thanks to positive evolution of Dakia.
Framatome
|
(in millions of euros) |
H1
2018 |
H1
2019 ([25]) |
Organic change (%) |
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Sales (26) |
1,500 |
1,537 |
+1.1 |
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EBITDA (27) |
194
([28]) |
207 |
-6.2 |
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EBITDA EDF group contribution |
86
(4) |
74 |
-43.0 |
Sales in Framatome in the first half of 2019
amounted to €1,537 million, up +1.1% compared to the first half of
2018. A significant share of sales was realised with other entities
of the Group.
Framatome’s EBITDA was €207 million, -6.2% in
organic terms, including the margin realised with other EDF group
entities. Framatome’s contribution to Group EBITDA for the first
half 2019 stood at €74 million.
The “Fuel” business retreated in the first half
of 2019, due to lower production levels at the European plants and
unfavourable phasing effects during the first half of 2019.
The “Installed base” business improved its
performance in the US and Germany (80% exports) in a highly
competitive market, but was affected in France by project execution
costs for export and French customers.
The “Components” business is recovering
profitability, and continued the step-up in production initiated in
2018 concerning equipment to replace steam generators and equipment
for new projects.
Framatome’s EBITDA also benefited from
continuation of the operating and structure costs reduction
plan.
United Kingdom
|
(in millions of euros) |
H1
2018 |
H1
2019 ([29]) |
Organic change (%) |
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Sales (30) |
4,605 |
4,536 |
-2.2 |
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EBITDA |
485 |
128 |
-75.9 |
In the United Kingdom, sales amounted to €4,536
million in the first half of 2019, down 2.2% in organic
terms.EBITDA amounted to €128 million, down 75.9% in organic terms
compared to June 2018.
EBITDA was adversely affected by lower nuclear
output, the setting up from 1 January 2019 of SVT (Standard
Variable Tariff) price cap and the suspension of the capacity
market.
Nuclear output amounted to 24.5TWh, down 5.7TWh
compared to June 2018 due to the extension of Hunterston B and
Dungeness B outages.
Residential customer accounts were slightly
lower (-1.1%) compared to end 2018 in a highly competitive
environment.
Italy
|
(in millions of euros) |
H1 2018 restarted ([31]) |
H1
2019 ([32]) |
Organic change (%) |
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Sales (2) |
3,900 |
4,029 |
+0.3 |
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EBITDA |
238 |
328 |
+28.2 |
In Italy, sales in the first half of 2019
reached €4,029 million, up 0.3% in organic terms from the first
half of 2018. EBITDA recorded an organic increase of 28.2% to €328
million.
The electricity activities registered a good
performance, essentially due to higher generation output, the
contribution of electricity ancillary services, and commissioning
of new wind farms (+115MW).
EBITDA for the gas activities was also up. In
the first half of 2018 it had been affected by an unfavourable
price effect relating to wholesale market purchases in a period of
sourcing pressures.
EBITDA for the retail activity was down slightly
year-on-year. The margins on electricity were lower, particularly
in the residential customer segment. Margins for gas improved,
especially in the industrial customer segment
Other international
|
(in millions of euros) |
H1
2018 |
H1
2019 ([33]) |
Organic change (%) |
|
Sales (34) |
1,147 |
1,365 |
+18.2 |
|
EBITDA |
117 |
166 |
+35.9 |
Sales in the Other international segment
amounted to €1,365 million, up 18.2% in organic terms compared to
the first half of 2018. EBITDA recorded an organic increase of
35.9% to €166 million.
In Belgium (35), EBITDA showed an organic
increase of +€14 million (+17.7%). The performance of thermal
generation has a positive effect on EBITDA estimated at
+€17 million at 30 June 2019. Production of renewable energy
benefited from the increase in installed wind power capacities,
which totalled 450MW at 30 June 2019 (up by +15% compared to 30
June 2018). Service activities are continuing to grow. Supply
activities are still marked by the strongly competitive
environment.
EBITDA in Brazil also showed organic growth of
+€33 million, largely due to the +16% adjustment to the Power
Purchase Agreement (PPA) price in November 2018, and a smaller
maintenance programme than in 2018 which meant that lower energy
purchases were needed to cover the PPA requirements.
Other activities
|
(in millions of euros) |
H1
2018 |
H1
2019 ([36]) |
Organic change (%) |
|
Sales (2) |
1,284 |
1,670 |
+33.6 |
|
EBITDA |
376 |
501 |
+55.9 |
Sales in Other activities amounted to €1,670
million, up 33.6% in organic terms over the first half of 2018.
EBITDA recorded an organic increase of 55.9% to reach €501
million.
EBITDA at EDF Trading amounted to €477 million
in the first half of 201, an organic increase of 44.2% compared to
first half 2018.
EDF Trading turned to its advantage movements in
European market prices in the first half of 2019, which was marked
by a particularly significant decrease in gas prices, and took
positions which are profitable at 30 June 2019. Its activities
on the international energy markets, LNG (Liquefied Natural Gas)
and LPG (Liquefied Petroleum Gas) also contributed to this
performance.
EDF and Jera broadened their partnership to
include LNG optimisation and trading activities since 1 April
2019.
Main events
(37)since the 2019 first quarter
press release
Major Events
- EDF signed two bilateral sustainable revolving credit
facilities with Crédit Agricole CIB and Societe Generale CIB,
bringing the total of its sustainability-linked loans to over €5
billion (see press release of 22 July 2019)
- EDF Group successfully completed its offer reserved for
employees and former employees (see press release of 10 July
2019)
- EDF launched “Mes jour zen” (see press release of 19 June
2019)
- Results of the option for the payment of the balance of the
dividend to be paid out on the 2018 financial year (see press
release of 17 June 2019)
- EDF acquired Energy2market (e2m) and strengthen its position in
the field of decentralized energy management in Europe (see press
release of 13 June 2019).
- EDF launched DREEV, its new subsidiary to turn innovative smart
charging solutions into a reality (see press release of 20 May
2019).
- Annual general meeting and board of directors meeting of 16 May
2019: All the resolutions were adopted. The Board of Directors
moved to renew the mandate of Jean-Bernard Lévy as Chairman and CEO
(see press release of 16 May 2019).
EDF
Renouvelables (38)
- The Council of State approved the final administrative permits
for the Fécamp and Courseulles-sur-Mer offshore wind farm projects
(see press release of 24 July 2019).
- EDF Renewables and Total Eren signed Power Purchase Agreements
for more than 700MWp of solar energy in India (see press release of
8 July 2019).
- EDF Renewables announced the commissioning of its very first
solar power plant in Mexico (see press release of 4 July
2019).
- EDF-led consortium selected for the Dunkirk offshore wind power
project (see press release of 14 June 2019).
- The Council of State approved the Saint-Nazaire offshore wind
farm operating permit (see press release of 7 June 2019).
- Consortium of EDF, Masdar and Green of Africa named as
successful bidder for Morocco’s landmark Noor Midelt I solar
project with an installed capacity of 800MW, a world first hybrid
solar and storage technology (see press release of 22 May
2019).
- EDF Renewables and WiSEED launched participative financing
relative to the Toucan 2 solar project with storage in French
Guiana (see press release of 6 May 2019).
- EDF Renewables secured a 20-year Power Purchase Agreement
following auctions in Greece for a future 60MWp solar plant located
near Athens (see press release of 6 May 2019).
Group Energy Services
- Inauguration of the biomass boiler of the Roanne heating
network (see press release of 19 June 2019).
- Grand Poitiers: the heating network will be heated with straw
(see press release of 5 June 2019).
Nuclear industry
- Hinkley Point C has hit its biggest milestone yet on schedule
(see EDF Energy’s press release of 28 June 2019, available on the
website www.edfenergy.com).
- Flamanville EPR: EDF is reviewing decision from French Nuclear
Safety Authority (see press release of 20 June 2019).
- Current review of 3 different scenarios to upgrade the
penetration welds
- After a detailed examination of the 3 scenarios and exchanges
with the Nuclear Safety Authority, communication by the Group in
the coming months of the impacts on schedule and costs
- At this stage, commissioning cannot be expected before end of
2022
Group Disposal
- Edison announced the signing of the agreement to sell Edison
Exploration and Production to Energean oil and gas (see press
release of 4 July 2019).
- EDF announced the completion of the disposal of its 25% stake
in Alpiq (see press release of 28 May 2019).
Others highlights
- Changes within the EDF Group’s Executive Committee (see press
release of 20 May 2019).
APPENDICESConsolidated
income statement
|
(in millions of euros) |
|
H1 2019 (1) |
H1 2018 (2) |
|
Sales |
|
36,469 |
34,962 |
| Fuel
and energy purchases |
|
(17,951) |
(16,770) |
| Other
external expenses |
|
(3,655) |
(3,989) |
|
Personnel expenses |
|
(6,963) |
(6,815) |
| Taxes
other than income taxes |
|
(2,810) |
(2,691) |
| Other
operating income and expenses |
|
3,256 |
3,365 |
|
Operating profit before depreciation and
amortisation |
|
8,346 |
8,062 |
| Net
changes in fair value on energy and commodity derivatives,
excluding trading activities |
|
350 |
19 |
| Net
depreciation and amortisation |
|
(4,776) |
(4,307) |
| Net
increases in provisions for renewal of property, plant and
equipment operated under concessions |
|
(54) |
(66) |
|
(Impairment)/reversals |
|
(45) |
(57) |
| Other
income and expenses |
|
(149) |
(56) |
|
Operating profit |
|
3,672 |
3,595 |
| Cost
of gross financial indebtedness |
|
(925) |
(782) |
|
Discount effect |
|
(1,801) |
(1,697) |
| Other
financial income and expenses |
|
2,596 |
861 |
|
Financial result |
|
(130) |
(1,618) |
|
Income before taxes of consolidated companies |
|
3,542 |
1,977 |
| Income
taxes |
|
(1,020) |
(582) |
| Share
in net income of associates and joint ventures |
|
352 |
365 |
| Net
income of discontinued operations |
|
(410) |
(7) |
|
GROUP NET INCOME |
|
2,464 |
1,753 |
|
EDF net income |
|
2,498 |
1,726 |
| Net
income of continuing operations |
|
2,898 |
1,733 |
| Net
income of discontinued operations |
|
(400) |
(7) |
|
Net income attributable to non-controlling
interests |
|
(34) |
27 |
| Net
income of continuing operations |
|
(24) |
27 |
| Net
income of discontinued operations |
|
(10) |
0 |
| |
|
|
|
|
Earnings per share (EDF share) in euros: |
|
|
|
|
Basic earnings per share |
|
0.72 |
0.46 |
|
Diluted earnings per share |
|
0.72 |
0.46 |
|
Earnings per share of continuing operations |
|
0.85 |
0.46 |
|
Diluted earnings per share of continuing operations |
|
0.85 |
0.46 |
- The financial statements at 30 June 2019 apply
IFRS 16 from 1 January 2019 (using the modified
retrospective approach).In accordance with the new standard’s
transition provisions, the comparative figures have not been
restated.
- The published figures for 2018 have been restated due to
the impact of presenting Edison’s E&P operations as operations
held for sale.
In application of IFRS 5, the net income of
operations held for sale is presented on a separate line of the
income statement for the financial periods presented. The impact of
application of IFRS 5 on the published figures for 2018
is presented.
Consolidated balance sheet
|
ASSETS(in millions of euros) |
|
30/06/2019 (1) |
31/12/2018 |
|
Goodwill |
|
10,210 |
10,195 |
| Other
intangible assets |
|
9,953 |
9,918 |
|
Property, plant and equipment operated under French public
electricity distribution concessions |
|
57,284 |
56,515 |
|
Property, plant and equipment operated under concessions for other
activities |
|
6,792 |
7,339 |
|
Property, plant and equipment used in generation and other tangible
assets owned by the Group |
|
84,273 |
78,252 |
|
Investments in associates and joint ventures |
|
7,609 |
8,287 |
|
Non-current financial assets |
|
40,252 |
37,104 |
| Other
non-current receivables |
|
2,140 |
1,796 |
|
Deferred tax assets |
|
1,273 |
978 |
|
Non-current assets |
|
219,786 |
210,384 |
|
Inventories |
|
14,066 |
14,227 |
| Trade
receivables |
|
14,165 |
15,910 |
|
Current financial assets |
|
28,913 |
31,143 |
|
Current tax assets |
|
280 |
869 |
| Other
current receivables |
|
6,615 |
7,346 |
| Cash
and cash equivalents |
|
4,345 |
3,290 |
|
Current assets |
|
68,384 |
72,785 |
|
Assets held for sale |
|
1,555 |
- |
|
TOTAL ASSETS |
|
289,725 |
283,169 |
- The financial statements at 30 June 2019 apply
IFRS 16 from 1 January 2019 (using the modified
retrospective approach).In accordance with the new standard’s
transition provisions, the comparative figures have not been
restated.
|
EQUITY AND
LIABILITIES (in millions of
euros) |
|
30/06/2019 (1) |
31/12/2018 |
|
Capital |
|
1,525 |
1,505 |
| EDF net
income and consolidated reserves |
|
43,629 |
42,964 |
|
Equity (EDF share) |
|
45,154 |
44,469 |
| Equity
(non-controlling interests) |
|
8,422 |
8,177 |
|
Total equity |
|
53,576 |
52,646 |
|
Provisions related to nuclear generation - back-end of the
nuclear cycle, plant decommissioning and last cores |
|
50,616 |
49,204 |
| Other
provisions for decommissioning |
|
1,494 |
2,033 |
|
Provisions for employee benefits |
|
19,623 |
17,627 |
| Other
provisions |
|
2,986 |
2,908 |
|
Non-current provisions |
|
74,719 |
71,772 |
| Special
French public electricity distribution concession liabilities |
|
47,218 |
46,924 |
|
Non-current financial liabilities |
|
54,620 |
52,129 |
| Other
non-current liabilities |
|
4,955 |
4,896 |
|
Deferred tax liabilities |
|
2,337 |
1,987 |
|
Non-current liabilities |
|
183,849 |
177,708 |
| Current
provisions |
|
6,280 |
6,010 |
| Trade
payables |
|
11,335 |
13,421 |
| Current
financial liabilities |
|
16,430 |
17,167 |
| Current
tax liabilities |
|
1,032 |
205 |
| Other
current liabilities |
|
16,394 |
16,012 |
|
Current liabilities |
|
51,471 |
52,815 |
|
Liabilities related to assets held for sale |
|
829 |
- |
|
TOTAL EQUITY AND LIABILITIES |
|
289,725 |
283,169 |
(1) The financial
statements at 30 June 2019 apply IFRS 16 from
1 January 2019 (using the modified retrospective
approach).In accordance with the new standard’s transition
provisions, the comparative figures have not been restated.
Consolidated cash flow
statement
|
(in millions of euros) |
|
H1 2019 (1) |
H1 2018 (2) |
| Operating
activities: |
|
|
|
| Income before
taxes |
|
3,168 |
2,013 |
| Income before taxes of
discontinued operations |
|
(374) |
36 |
|
Income before taxes of consolidated companies |
|
3,542 |
1,977 |
|
Impairment/(reversals) |
|
45 |
57 |
|
Accumulated depreciation and amortisation, provisions and changes
in fair value |
|
3,169 |
4,916 |
|
Financial income and expenses |
|
312 |
277 |
|
Dividends received from associates and joint ventures |
|
88 |
124 |
|
Capital gains/losses |
|
(6) |
50 |
| Change
in working capital |
|
1,050 |
1,419 |
|
Net cash flow from operations |
|
8,200 |
8,820 |
| Net
financial expenses disbursed |
|
(606) |
(719) |
| Income
taxes paid |
|
259 |
200 |
|
Net cash flow from continuing operating
activities |
|
7,853 |
8,301 |
|
Net cash flow from operating activities relating to
discontinued operations |
|
129 |
111 |
|
Net cash flow from operating activities |
|
7,982 |
8,412 |
|
Investing activities: |
|
|
|
| Acquisitions of equity investments, net
of cash acquired |
|
(282) |
(296) |
| Disposals of equity investments, net of
cash transferred |
|
217 |
45 |
|
Investments in intangible assets and property, plant and
equipment |
|
(7,537) |
(7,621) |
| Net
proceeds from sale of intangible assets and property, plant and
equipment |
|
41 |
89 |
|
Changes in financial assets |
|
1,799 |
(479) |
|
Net cash flow from continuing investing
activities |
|
(5,762) |
(8,262) |
|
Net cash flow from investing activities
relating to discontinued operations |
|
(69) |
(58) |
|
Net cash flow from investing activities |
|
(5,831) |
(8,320) |
|
Financing activities: |
|
|
|
| EDF capital increase |
|
- |
- |
| Transactions with non-controlling
interests (3) |
|
420 |
1,285 |
|
Dividends paid by parent company |
|
(31) |
(60) |
|
Dividends paid to non-controlling interests |
|
(80) |
(113) |
|
Purchases/sales of treasury shares |
|
(16) |
- |
|
Cash flows with shareholders |
|
293 |
1,112 |
|
Issuance of borrowings |
|
2,521 |
2,299 |
|
Repayment of borrowings |
|
(3,778) |
(3,087) |
|
Payments to bearers of perpetual subordinated bonds |
|
(334) |
(378) |
|
Funding contributions received for assets operated under
concessions |
|
68 |
56 |
|
Investment subsidies |
|
141 |
301 |
|
Other cash flows from financing activities |
|
(1,382) |
(809) |
|
Net cash flow from continuing financing
activities |
|
(1,089) |
303 |
|
Net cash flow from financing activities relating to
discontinued operations |
|
(61) |
(67) |
|
Net cash flow from financing activities |
|
(1,150) |
236 |
| Net
cash flow from continuing operations |
|
1,002 |
342 |
| Net
cash flow from discontinued operations |
|
(1) |
(14) |
|
Net increase/(decrease) in cash and cash
equivalents |
|
1,001 |
328 |
|
CASH AND CASH EQUIVALENTS - OPENING BALANCE |
|
3,290 |
3,692 |
| Net increase/(decrease) in cash and
cash equivalents |
|
1,001 |
328 |
| Effect
of currency fluctuations |
|
(49) |
(22) |
|
Financial income on cash and cash equivalents |
|
8 |
7 |
| Effect
of reclassifications |
|
95 |
(48) |
|
CASH AND CASH EQUIVALENTS - CLOSING BALANCE |
|
4,345 |
3,957 |
- The financial statements at 30 June 2019 apply
IFRS 16 from 1 January 2019 (using the modified
retrospective approach). In accordance with the new standard’s
transition provisions, the comparative figures have not been
restated.
- The published figures for 2018 have been restated due to
the impact of presenting Edison’s E&P operations as
discontinued operations.
- Contributions via capital increases, or capital reductions and
acquisitions of additional interests or disposals of interests in
controlled companies. In 2019, this item includes an amount of
€418 million relating to CGN’s payment for the NNB Holding
Ltd. and Sizewell C Holding Co capital increases (€361 million
at 30 June 2018). In 2018 it also included an amount
of €797 million relating to the sale of 49% of EDF Renewables’
wind farms.
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.
- 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.
DisclaimerThis 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 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-looking
information contained in this presentation to reflect any
unexpected events or circumstances arising after the date of this
presentation
This press release is certified. You can
check that it’s genuine at medias.edf.com
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Only print what you need. EDF SA 22-30, avenue de Wagram
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CONTACTS Presse :
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investors : +33(0) 1 40 42 40 38 |
([1]) Hydropower output after
deduction of pumped volumes represents 17.1TWh in the first half of
2019 (25.5TWh in the first half of 2018).
([2]) Linky is a project led by
Enedis, an independent EDF subsidiary as defined in the French
Energy Code.
- [3]) Cash flow after dividends. The financial
statements for the six months ended 30 June 2019 have been prepared
in accordance with IFRS 16. Comparative figures have not been
restated and the impact on Group cash flow would have been
+€302m.
([4]) Net financial debt
increased by €4.5bn in connection with the implementation of IFRS
16 on 1 January 2019.
- [5]) Net financial debt is not defined by
accounting standards and does not appear directly in the Group's
consolidated balance sheet. It corresponds to borrowings and
financial debts less cash and cash equivalents and liquid assets.
Liquid assets are financial assets composed of funds or securities
with an initial maturity of more than three months, easily
convertible into cash, and managed for liquidity purposes.
- [6]) Data published for the 2018 financial
year (excluding net financial debt) have been restated for the
impact of the presentation of the E&P as a discontinued
operation.
- [7]) The 30/06/2019 financial statements
are prepared applying the IFRS 16 standard. The comparative data
was not restated and the EBITDA impact would have been of €164
million as 30/06/2018.
([8]) Breakdown of sales across
the segments, before inter-segment eliminations.
- [9]) After deduction of pumped-storage
hydropower volumes,
- [10]) Excluding the energy savings certificate
component of market-price offers.
- [11]) -0.5% at 1 August 2018 (including the
end of tariff catch-up) and +7.7% excluding taxes at 1 June
2019.
- [12]) Sum of personnel expenses and other
external expenses. Based on comparable scope, IFRS 16 and exchange
rates and constant discount rates for pensions. Excluding changes
in operating expenses of the service activities.
- [13]) Regulated activities include Enedis, ÉS
and island activities.
([14]) The 30/06/2019 financial
statements are prepared applying the IFRS 16 standard. The
comparative data was not restated and the EBITDA impact would have
been of €83 million as 30/06/2018.
([15]) Breakdown of sales
across the segments, before inter-segment eliminations.
([16]) Indexed adjustment of
-0.21% to the TURPE 5 distribution tariff from 1 August 2018 and
+3.0% to the TURPE 5 transmission tariff from 1 August
2018.
([17]) For the years 2012-2017 following
publication of the official decisions. A provision has been booked
for 2018 and the first half of 2019.
([18]) Sum of personnel
expenses and other external expenses. Based on comparable scope,
IFRS 16 and exchange rates and constant discount rates for
pensions. Excluding changes in operating expenses of the service
activities.
([19]) The 30/06/2019 financial
statements are prepared applying the IFRS 16 standard. The
comparative data was not restated and the EBITDA impact would have
been of €27 million as 30/06/2018.
([20]) Breakdown of sales
across the segments, before inter-segment eliminations
([21]) 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 and EBITDA 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.
([22]) The 30/06/2019 financial
statements are prepared applying the IFRS 16 standard. The
comparative data was not restated and the EBITDA impact would have
been of €17 million as 30/06/2018.
([23]) Breakdown of sales
across the segments, before inter-segment eliminations.
- [24]) 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.
- [25]) The 30/06/2019 financial statements are
prepared applying the IFRS 16 standard. The comparative data was
not restated and the EBITDA impact would have been of €22 million
as 30/06/2018.
([26]) Breakdown of sales
across the segments, before inter-segment eliminations.
([27]) Breakdown of EBITDA
across the segments, before inter-segment eliminations.
([28]) Including a €21m charge
related to the revaluation of inventories, carried out as part of
the determination of the Framatome acquisition balance sheet
([29]) The 30/06/2019 financial
statements are prepared applying the IFRS 16 standard. The
comparative data was not restated and the EBITDA impact would have
been of €8 million as 30/06/2018.
([30]) Breakdown of sales
across the segments, before inter-segment eliminations
- [31]) The disposal of Edison's Exploration and
Production (E&P) activity was classified as a discontinued
operation within the meaning of IFRS 5 as of 1 January 2019. The
data published for the 2018 financial year have been restated for
the impact of the presentation of the E&P activity in the
process of being sold.
- [32]) The 30/06/2019 financial statements are
prepared applying the IFRS 16 standard. The comparative data was
not restated and the EBITDA impact would have been of €9 million as
30/06/2018.
([33]) The 30/06/2019 financial
statements are prepared applying the IFRS 16 standard. The
comparative data was not restated and the EBITDA impact would have
been of €5 million as 30/06/2018.
([34]) Breakdown of sales
across the segments, before inter-segment eliminations
([35]) Lunimnus and EDF
Belgium
([36]) The 30/06/2019 financial
statements are prepared applying the IFRS 16 standard. The
comparative data was not restated and the EBITDA impact would have
been of €6 million as 30/06/2018.
([37]) A full list of press
releases is available on EDF’s website www.edf.fr
([38]) La liste exhaustive des
communiqués de presse d’EDF Renouvelables est disponible sur le
site internet : www.edf-renouvelables.com
- PR H1 2019- VDEF certified