Edf: 2020 HALF-YEAR RESULTS , Resilient EBITDA and limited decline
in recurring net income in the first half of the year ,
Implementation of a cost reduction and disposal plan
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PRESS RELEASE 30 July 2020 |
2020 HALF-YEAR RESULTS
Strong mobilisation of the Group during
the crisis Continued growth in
renewablesResilient EBITDA and limited decline in
recurring net income in the first half of the
yearImplementation of a cost reduction and
disposal plan Adoption of the Group’s “Raison
d'être”
Financial results of the 1st half of
2020
Sales
€34.7bn
-4.9% org. (1)
EBITDA
€8.2bn
-1.6% org. Net income
excluding non-recurring items
(2)
€1.3bn
-9.6%
Net income – Group
share
-
€0.7bn
-
Highlights
1/ Strong mobilisation of the
Group during the health crisis
- Specific safety measures for employees and service providers
were introduced
- A strong digital response for remote work for Group employees:
~70,000 simultaneous connections in France
2/ Continued growth in
renewables
- United Arab Emirates: construction completed of DEWA III
(800MWp), EDF’s biggest solar power plant; award of the call for
tenders and PPA signed by EDF and Jinko for the construction of Al
Dhafra (2GWp), the world’s largest solar projects to date.
- France: start of the construction of the Fécamp offshore wind
farm (500MW)
- China: EDF’s participation in the Dongtai IV and V offshore
wind projects
- Signing of a PPA (22 years) for the Chuckwalla solar power
project (200MWp) coupled with a storage system (180MW) in the
United States
- Above-average hydraulicity: Lake France close to 30-year record
levels at the end of July 2020
3/ Nuclear developments
- Nuclear output estimate in France for 2020, upgraded to around
315-325TWh compared with the 300TWh estimated on 16 April 2020
- Hinkley Point C: “J-zero” (3) milestone reached on
schedule for the plant’s 2nd reactor
- Sizewell C: Application for Development Consent Order
(DCO) (4) submitted to Planning Inspectorate and ruled
admissible on 24 June 2020
- Nominal operation of the 2 Taishan EPRs
- Slowdown in construction and maintenance of the fleet due to
Covid in France and the United Kingdom
4/ Customers and services
- France commercial service:
- Electricity market share of residential customers: slowdown in
net customer losses to -420,000 (5) H1 2020 vs. -618,000 H1
2019
- More than 720,000 residential electricity customers have signed
up for an EDF market offering
- More than 1.6 million residential gas customers
5/ Numerous international successes,
especially in hydropower
6/ Adoption of a cost reduction and
disposal plan to mitigate the effects of the health
crisis
2020
target |
àEBITDA (6) : €15.2 – 15.7bn |
2020-22 ambitions |
- Reduction in operating expenses (7) €500m between
2019 and 2022
- Group disposals 2020-22 (8): ~€3bn
- Net financial debt/EBITDA (6) ~3x each
year
|
EDF’s Board of Directors meeting on 29 July
2020, under the chairmanship of Jean-Bernard Lévy, approved the
condensed consolidated financial statements at 30 June
2020.Jean-Bernard Lévy, Chairman and Chief Executive Officer of EDF
stated: “Throughout the public-health crisis, EDF’s employees
poured all their energy into fulfilling their essential duties in
support of our customers in all countries where we operate. Despite
the economic downturn, the impact of the crisis on our main
financial indicators remains contained, attesting to the resilience
of our Group. These conditions require us to adopt a cost savings
and disposal plan enabling us to pursue the deployment of our CAP
2030 strategy and keep our debt under control. The decarbonisation
of the economy, which combines the fight against global warming and
sustainable growth, is a real development opportunity for EDF.”
Change in EDF group results
(in millions of Euros) |
H1 2019 (9) restated |
H1 2020 |
Change (%) |
Organic change (%) |
Sales |
36,484 |
34,710 |
-
4.9 |
-
4.9 |
EBITDA |
8,360 |
8,196 |
-
2.0 |
-
1.6 |
EBIT |
3,677 |
1,624 |
-
55.8 |
|
EDF
net income |
2,498 |
- 701 |
- |
|
Net
income excluding non-recurring items (2) |
1,402 |
1,267 |
-
9.6 |
|
Change in EDF group’s EBITDA
(in millions of Euros) |
H1 2019 (9)
restated |
H1 2020 |
Organic change (%) |
France
– Generation and supply activities |
3,971 |
3,894 |
-
1.9 |
France
– Regulated activities |
2,578 |
2,460 |
-
4.6 |
EDF
Renewables |
405 |
418 |
+14.1 |
Dalkia |
195 |
165 |
-
14.9 |
Framatome |
74 |
98 |
+
28.4 |
United
Kingdom |
128 |
438 |
+
246.1 |
Italy |
342 |
380 |
-
0.3 |
Other
international |
166 |
208 |
+
31.9 |
Other
activities |
501 |
135 |
-
70.5 |
Total Group |
8,360 |
8,196 |
- 1.6 |
EBITDA for the first half of 2020 was down
slightly compared to the first half of 2019. Despite lower nuclear
output in France, it benefited from better price conditions in the
United Kingdom and France, as well as from better hydrological
conditions. The health crisis affected the Group’s EBITDA by an
estimated €1,010 million (10) at the end of June 2020, mainly
due to lower nuclear output, the drop in demand affecting
electricity distribution and supply activities, as well as the
slowdown or postponement of work and service activities with
customers.
Operational
performance
Nuclear output in France amounted to 174.0TWh,
down 29.7TWh compared to the first half of 2019 (of which around
13TWh due to the health crisis).Hydropower output in France
amounted to 26.0TWh (1), up 29.4% (+5.9TWh) compared to 2019,
which had experienced unfavourable hydrological conditions in the
first half of 2019.
In the United Kingdom, nuclear output was 22.7TWh, down 1.8TWh
compared to the first half of 2019. This decrease is due to the
schedule of maintenance operations and planned outages. Output was
still negatively impacted by the outages of Hunterston B and
Dungeness B.
In Belgium, both nuclear and wind output were
up.EDF Renewables’ output amounted to 7.9TWh (+0.6TWh), i.e. a
change of +7.4% in organic terms, driven by new wind and solar
capacities commissioned at the end of 2019 (USA, Canada, France,
India) and by good wind and solar conditions.
Adoption of a cost reduction and disposal
plan
To mitigate the impact of the health crisis on
the Group’s financial situation, a cost cutting plan and a disposal
plan are been implemented. They aim at making a further effort to
cut costs, with a target of €500 million in reductions to
operating expenses (2) between 2019 and 2022, and a
stabilisation of net investments to around €15.0 billion (3)
on average per year over 2020-2022.In addition, further asset
disposals (4) will be initiated, with the aim of approximately
€3 billion over the period 2020 to 2022.This action plan aims to
sustain the continued deployment of the CAP 2030 strategy while
ensuring the solidity of the Group’s balance sheet, by maintaining
a ratio of financial debt to EBITDA of around 3x each year during
the 2020-22 period.
Prospects for reforming the existing
nuclear regulatory framework in France
Discussions are continuing between the French
State and the European Commission on the overhaul of the regulation
of the French nuclear fleet, with no certainty of success at this
stage. The aim is to define an appropriate and balanced regulatory
framework that would also lead to a reorganisation of the Group’s
activities in order to strengthen its capacity to invest in the
energy transition.
Net income and dividend
The financial result represents an expense of
€2,302 million in the first half of 2020, an unfavourable change of
€2,171 million euros compared to the first half of 2019, mainly due
to the negative change in fair value of the dedicated assets
portfolio (€2,631 million) in a context of deteriorated financial
markets. As a reminder, this change in fair value is not included
in the calculation of net income excluding non-recurring items.Net
income excluding non-recurring items stood at €1,267 million at the
end of June 2020, down €135 million from the first half of 2019.
This change reflects the decline in EBITDA and the increase in
depreciation and amortisation, which were partially offset by an
improvement in recurring financial income due to the stability of
the real discount rate at 30 June 2020 compared to a decline at 30
June 2019.
Net income – Group share amounted to -€701
million at the end of June 2020, due mainly to non-recurring
items.The Group will not distribute an interim dividend in 2020. It
is maintaining its payout ratio target for net income excluding
non-recurring items (5) between 45 - 50% for 2020 to 2022,
with the French State opting for script dividends relating to 2020
an 2021 fiscal year.
Cash flow and net financial
debt
Group cash flow stood at -€1,889 million at the
end of June 2020 (compared to +€1,047 million at the end of June
2019) mainly due to the deterioration in working capital
requirements of -€1,364 million. This was essentially attributable
to the increase in working capital requirements related to the CSPE
as a result of significant renewable output in France in a context
of low prices in the first half of 2020 (-€715 million).Net
investments, excluding disposals, and excluding HPC and Linky,
amounted to €5,875 at the end of June 2020. Total investments,
including HPC and Linky, amounted to €6,988 million.Cash flow from
operations (6) amounted to €597 million, down €1,908 million
compared to the first half of 2019.
|
31/12/2019 |
30/06/2020 |
Net
financial debt (7) (in billions of Euros) |
41.1 |
42.0 |
Net
financial debt/EBITDA (8) |
2.46x |
2.54x |
Main Group results by
segment
France – Generation and supply
activities
(in
millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) |
Sales (9) |
14,299 |
14,449 |
+ 1.0 |
EBITDA |
3,971 |
3,894 |
- 1.9 |
Sales in France - Generation and supply
activities at the end of June 2020 amounted to €14,449 million, up
1.0% in organic terms compared to the first half of 2019.
EBITDA was down organically by 1.9% compared to
the first half of 2019 and amounted to €3,894 million.
Overall, the health crisis affected the EBITDA
of the France - Generation and supply activities for an estimated
-€482 million due to lower nuclear availability (around -13TWh),
lower consumption and estimated increase in bad debts.
The decrease in nuclear output (around -17TWh
excluding the impact of the health crisis) partially offset by the
increase in hydropower output (+5.6TWh after deduction of pumped
volumes) had an unfavourable effect estimated at -€494 million.
The postponement of planned unit outages in 2020
will also affect the maintenance programme in 2021 and 2022 (for
which the nuclear output forecast is estimated at between 330 and
360TWh each year) (10) . In regardsthe “Grand Carénage”
programme, the feedback from the VD4 900MW, as well as ongoing
discussions with the ASN, could lead to additional investments in
the coming years under this programme, which is currently under
review.
This change was partialy offset by the positive
energy price effects for an estimated €709 million due to the
tariff increases (11) in June 2019 and February 2020 (the
latter including half of the tariff catch-up in the first half of
2019) and favourable conditions on the spot market.
On the downstream market, the erosion of market
share was more than offset by the positive change in capacity
prices and the lower cost of the Energy Saving Certificates
component for an overall favourable amount estimated at +€302
million.
Operating expenses (12) were down €84
million, i.e. -2.2%, mainly due to headcount decrease and
optimisation of the real estate portfolio.
In addition, various other items had a negative
impact of - €196 million on EBITDA.
As regards Flamanville 3, in the context of
health crisis, all construction activities have been temporarily
interrupted between mid-March and early May, which could result in
further delays and additional costs. The instruction of the
upgrading of the main secondary system welds and other technical
issues is ongoing and remains subject to ASN approval.
France – Regulated activities
(13)
(in
millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) |
Sales (14) |
8,307 |
8,139 |
-2.0 |
EBITDA |
2,578 |
2,460 |
- 4.6 |
Sales in France - Regulated activities at the
end of June 2020 amounted to €8,139 million, down 2.0% in organic
terms compared to the first half of 2019.
EBITDA amounted to €2,460 million, down 4.6% in
organic terms compared to the first half of 2019.
The decline in distributed volumes and network
connection services reflects the impact of the health crisis on
business. This was estimated at a total of -€212 million at the end
of June 2020.
The climate effect had an estimated unfavourable
impact of -€152 million.
The change in prices has a positive effect of
+€223 million, in line mainly with the favourable indexed
adjustments to the TURPE 5 (15) distribution and transport
that took place on 1 August 2019.
Renewable Energies
EDF Renewables
(in millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) (16) |
Sales
(17) |
776 |
770 |
+ 5.0 |
EBITDA |
405 |
418 |
+ 14.1 |
of
which EBITDA production |
472 |
471 |
+
6.9 |
Sales at the end of June 2020 for EDF Renewables
amounted to €770 million, up 5.0% in organic terms compared to the
first half of 2019.
EBITDA amounted to €418 million, up 14.1% in
organic terms compared to the first half of 2019.
The health crisis had no significant effect on
EDF Renewables’ business.
This strong increase is due, on the one hand, to
growth in EBITDA of generation (€471 million, i.e. organic growth
of +6.9%) driven by generation volumes representing 7.9TWh (+7.4%),
and, on the other hand, to the “Development and Sale of Structured
Assets” operations that remained robust in the first half of 2020,
mainly in the United States.
The gross portfolio of projects under
construction reached 5.9GW, of which 3.1GW in onshore wind power,
1.6GW in offshore wind power, and 1.0GW in solar.
Group Renewables (18)
(in millions of euros) |
H1 2019 |
H1 2020 |
Change (%) |
Organic change (%) (1) |
Sales (2) |
2,134 |
2,074 |
-3 |
-
3 |
EBITDA |
881 |
859 |
- 3 |
-
2 |
Net investments |
(489) |
(783) |
+ 60 |
|
EBITDA of all of the Group’s Renewables amounted
to €859 million in the first half of 2020, an organic decrease of
-2% due to unfavourable price conditions on the spot market for
hydropower generation in France. This effect was only partially
offset by favourable hydrological conditions (+29.4 % compared
to the first half of 2019) and increased renewable generation (wind
and solar) benefiting from commissioning and better wind and sun
conditions.
Net investments increased due to the accelerated
development of EDF Renewables in the United States and a smaller
amount of subsidies than in the first half of 2019.
Energy Services
Dalkia
(in millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) |
Sales (19) |
2,152 |
1,988 |
- 14.3 |
EBITDA |
195 |
165 |
- 14.9 |
Dalkia’s sales at the end of June 2020 amounted
to €1,988 million, down 14.3% in organic terms compared to the
first half of 2019.
EBITDA amounted to €165 million, down 14.9% in
organic terms compared to the first half of 2019.
The change in EBITDA reflects the impact of the
health crisis on sales volumes of energy and services, in
connection with the closure of many customer sites and the
postponement of construction work (estimated at -€39 million).
It should be noted, however, that the heating
network and energy services businesses were resilient, as Dalkia
remained mobilised together with its customers, notably to support
the continuity of essential services such as in the hospital
sector.
Group Energy Services (20)
(in millions of euros) |
H1 2019 |
H1 2020 |
Change (%) |
Organic change (%) |
Sales (1) |
2,873 |
2,584 |
- 10 |
- 11 |
EBITDA |
216 |
188 |
- 13 |
- 20 |
Net investments |
(107) |
(181) |
+ 69 |
|
Energy Services EBITDA amounted to €188 million
in the first half of 2020, representing an organic decrease of 20%
due to the impact of the health crisis on the operations of Dalkia,
Edison and Luminus.
The increase in net investments was mainly due
to the acquisition of Pod Point in the United Kingdom. It was only
partially offset by the postponements of Dalkia’s construction
works due to the health crisis.
Framatome
(in millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) |
Sales (21) |
1,537 |
1,490 |
- 4.6 |
EBITDA (22) |
207 |
211 |
+ 0.9 |
EDF group contributory sales |
74 |
98 |
+ 28.4 |
Framatome’s sales at the end of June 2020
amounted to €1,490 million, down 4.6% in organic terms compared to
the first half of 2019.
Framatome’s EBITDA amounted to €211 million in
the first half of 2020, i.e. an organic increase of +0.9%
(including the margin realised with EDF group entities).
Framatome’s contribution to the Group’s EBITDA amounted to €98
million, up 28.4% in organic terms compared to the first half of
2019.
The health crisis is impacting the “Installed
Base”, “Fuel” and “Projects and Component Manufacturing” businesses
for a total estimated amount of -€37 million in EBITDA. These
effects were partially offset by lower overhead expenses due to the
health crisis.
The growth in EBITDA mainly reflects a better
product mix and an unfavourable calendar effect in the first half
of 2019 on the Fuel business. EBITDA also benefited from the
continuation of the plan to reduce operating costs.
Framatome finalised the acquisition of the
commercial nuclear services of BWX Technologies Inc. (BWXT) in the
United States. It is expanding its portfolio of equipment and tools
for the inspection and maintenance of nuclear power plants, thereby
strengthening its position in the nuclear energy sector.
United Kingdom
(in millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) |
Sales
(23) |
4,536 |
4,595 |
+ 3.6 |
EBITDA |
128 |
438 |
x3.5 |
In the United Kingdom, sales in the first half
of 2020 amounted to €4,595 million, up 3.6% in organic terms.
EBITDA increased to €438 million, i.e. 3.5x
organically.
The health crisis had an overall negative impact
on EBITDA of -€128 million, due mainly to the drop in consumption
(-12%) in the portfolio of industrial and professional
customers.
The positive trend in EBITDA can be explained by
the increase in nuclear realised prices and the re-instatement of
the capacity market. These positive elements were partially
impacted by lower nuclear output due to maintenance operations and
planned outages.
In a highly competitive environment, the
portfolio of residential customers was stable overall and margins
were increasing thanks to an improved customer mix.
Finally, the health crisis has slowed down
nuclear construction and maintenance projects. As regards HPC, the
risk of delays in the commissioning schedule is high. In September
2019, it has been estimated at 15 months for Unit 1 (planned
for the end of 2025) and at 9 months for Unit 2. These
postponements would lead to an additional cost of approximately
£20150.7bn. The impacts of Covid 19 on the schedule and costs are
currently being assessed (including impacts on supplier production
conditions and associated delivery times) and increase the risk of
postponement of planned commissioning dates. A comprehensive study
to assess the need for an updated schedule and costs is currently
underway and will be completed in the coming months.
Italy
(in millions of euros) |
H1 2019 restated
(24) |
H1 2020 |
Organic change (%) (25) |
Sales (1) |
4,044 |
2,909 |
- 28.8 |
EBITDA |
342 |
380 |
- 0.3 |
In Italy, sales at the end June 2020 amounted to
€2.909 million, down 28.8% in organic terms compared to the first
half of 2019. EBITDA is broadly stable and stood at €380
million.
Overall, the health crisis has affected Italy's
EBITDA by an estimated -€47 million.
The contribution from supply activities is down
compared to the first half of 2019 due to the impact of the health
crisis on gas and electricity volumes, particularly in the
industrial customer segment (estimated at -€40 million).
Results from service activities are down for
industrial customers due to the health crisis (estimated at -€7
million).
In the Electricity Activities, EBITDA declined
due to lower availability of the CCGT (combined cycle gas) fleet,
which was partially offset by the good performance of ancillary
services.
In gas activities, EBITDA benefited from better
optimisation of medium and long-term gas supply contracts.
Other international
(in millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) |
Sales (26) |
1,365 |
1,244 |
- 5.3 |
EBITDA |
166 |
208 |
+ 31.9 |
of
which Belgium |
100 |
135 |
+
34.0 |
of
which Brazil |
65 |
54 |
+
3.1 |
Sales in Other international amounted to €1,244
million at the end of June 2020, down 5.3% in organic terms
compared to the first half of 2019. EBITDA was up organically by
31.9% to €208 million.
In Belgium (27), EBITDA
was up 34.0% in organic terms. The health crisis had an
unfavourable impact on EBITDA estimated at -€29 million due to the
drop in consumption, sales on the power markets under deteriorated
price conditions, the decline in service activities and collection
risks on trade receivables. The first half of the year benefited
from a strong performance in wind farm generation, which rose
sharply to 642GWh (+47%) thanks to favourable wind conditions and
the development of installed capacity. Net installed wind capacity
increased to 485MW (28) (i.e.+10.7% compared to the end of
June 2019). Growth was also driven by improved output from nuclear
power plants and more favourable price conditions than in 2019.
In Brazil, EBITDA was up 3.1%
in organic terms, mainly due to the revaluation in November 2019 of
+5% of the Power Purchase Agreement (PPA) price linked to the EDF
Norte Fluminense plant. This favourable effect was almost entirely
offset by an increase in fuel prices due to the depreciation of the
Brazilian Real against the dollar. The effect of the health crisis
in Brazil is not material.
Other activities
(in millions of euros) |
H1 2019 |
H1 2020 |
Organic change (%) |
Sales (29) |
1,670 |
1,200 |
- 27.1 |
EBITDA |
501 |
135 |
- 70.5 |
Including Gas business |
(31) |
(296) |
x9.5 |
Including EDF Trading |
477 |
391 |
-15.3 |
Sales in Other activities amounted to €1,200
million, down 27.1% in organic terms compared to the first half of
2019. EBITDA declined organically by 70.5% to €135 million.
Overall, the health crisis has affected the
EBITDA of the Other activities segment for an estimated -€36
million.
The gas business was affected by a provision for
onerous contracts recorded mainly due to the downward revision of
medium and long-term spreads between the U.S.A. and Europe.
EDF Trading’s EBITDA amounted to €391 million,
down 15.3% in organic terms compared to the exceptional first half
of 2019. The health crisis affected trading margins amounting to
around -€31 million at the end of June mainly due to an increase in
provisions for counterparty risk. Despite a context of
crisis-related uncertainties, the performance of trading activities
remained strong, generating a good result in the first half of the
year.
Main events
(30) sincethe
2020 first quarter press release
Major Events
- EDF revised upwards its nuclear output estimate for 2020 (see
press release of 2 July 2020).
- EDF launched a call for tenders for the creation of a
“Solidarity and Energy Transition” Employee Savings Fund (see press
release of 18 June 2020).
- EDF enriched its range of services to make it easier for
companies to return to their business activities (see press release
of 8 June 2020).
- EDF launched “CHECK”, a digital assistant for worry-free moves
on a controlled budget (see press release of 26 May 2020).
Participations, partenariats et projets
d’investissements
EDF Renouvelables (31)
- EDF Renewables signed a contract for 200 MW solar + storage
project in Nevada (see the EDF Renewables press release of 29 July
2020).
- EDF – Jinko Power consortium awarded the world’s largest solar
project in Abu Dhabi (see the EDF Renewables press release of 27
July 2020).
- EDF Renewables, Enbridge and wpd start construction of the
Fécamp Offshore Wind Farm (see press release of 2 June 2020).
- EDF and CEI Groups join hands for offshore wind projects under
construction and operational in China, Dongtai IV and V (see press
release of 2 June 2020)
EDF Energy (32)
- Hinkley Point C nuclear power project achieved latest major
milestone on schedule with the completion of second reactor base
(see press release of 1 June 2020).
- EDF Energy filed the planning application for a Development
Consent Order (DCO) for the Sizewell C project in the United
Kingdom. (see press release of 27 May 2020).
APPENDICES
Consolidated income statement
(in millions of euros) |
|
H1 2020 |
H1 2019(1) |
Sales |
|
34,710 |
36,484 |
Fuel
and energy purchases |
|
(16,550) |
(17,951) |
Other
external expenses (2) |
|
(3,469) |
(3,658) |
Personnel expenses |
|
(7,020) |
(6,965) |
Taxes
other than income taxes |
|
(2,813) |
(2,810) |
Other
operating income and expenses |
|
3,338 |
3,260 |
Operating profit before depreciation and
amortisation |
|
8,196 |
8,360 |
Net
changes in fair value on energy and commodity derivatives,
excluding trading activities |
|
(323) |
350 |
Net
depreciation and amortisation (3) |
|
(5,358) |
(4,839) |
(Impairment)/reversals |
|
(738) |
(45) |
Other
income and expenses |
|
(153) |
(149) |
Operating profit |
|
1,624 |
3,677 |
Cost
of gross financial indebtedness |
|
(868) |
(925) |
Discount effect |
|
(1,172) |
(1,801) |
Other
financial income and expenses |
|
(262) |
2,595 |
Financial result |
|
(2,302) |
(131) |
Income before taxes of consolidated companies |
|
(678) |
3,546 |
Income
taxes |
|
42 |
(1,017) |
Share
in net income of associates and joint ventures |
|
11 |
352 |
Net
income of discontinued operations |
|
(161) |
(417) |
GROUP NET INCOME |
|
(786) |
2,464 |
EDF net income |
|
(701) |
2,498 |
EDF
net income – continuing operations |
|
(544) |
2,905 |
EDF
net income – discontinued operations |
|
(157) |
(407) |
Net income attributable to non-controlling
interests |
|
(85) |
(34) |
Net
income attributable to non-controlling interests – continuing
operations |
|
(81) |
(24) |
Net
income attributable to non-controlling interests – discontinued
operations |
|
(4) |
(10) |
|
|
|
|
Earnings per share (EDF share) in euros: |
|
|
|
Basic
earnings per share |
|
(0.32) |
0.72 |
Diluted earnings per share |
|
(0.32) |
0.72 |
Earnings per share of continuing operations |
|
(0.27) |
0.85 |
Diluted earnings per share of continuing operations |
|
(0.27) |
0.85 |
- The published figures for 2019 have been restated due to
the impact of the change in the scope of E&P operations
presented as discontinued operations.
- Other external expenses are reported net of capitalised
production costs.
- Including net increases in provisions for renewal of property,
plant and equipment operated under concessions.
Consolidated balance sheet
Consolidated cash flow statement
(in millions of euros) |
|
H1 2020 |
H1 2019 (2) |
Operating
activities: |
|
|
|
Income before
taxes |
|
(839) |
3,168 |
Income of
discontinued operations |
|
(161) |
(377) |
Income before taxes of consolidated companies |
|
(678) |
3,545 |
Impairment/(reversals) |
|
738 |
45 |
Accumulated depreciation and amortisation, provisions and changes
in fair value |
|
7,166 |
3,183 |
Financial income and expenses |
|
585 |
311 |
Dividends received from associates and joint ventures |
|
112 |
88 |
Capital gains/losses |
|
(74) |
(6) |
Change
in working capital |
|
(1,364) |
1,076 |
Net cash flow from operations |
|
6,485 |
8,242 |
Net
financial expenses disbursed |
|
(660) |
(608) |
Income
taxes paid |
|
(368) |
259 |
Net cash flow from continuing operating
activities |
|
5,457 |
7,893 |
Net cash flow from operating activities relating to
discontinued operations |
|
59 |
89 |
Net cash flow from operating activities |
|
5,516 |
7,982 |
Investing
activities: |
|
|
|
Acquisitions of equity investments, net
of cash acquired |
|
(96) |
(282) |
Disposals of equity investments, net of
cash transferred |
|
117 |
217 |
Investments in intangible assets and property, plant and
equipment |
|
(7,475) |
(7,577) |
Net
proceeds from sale of intangible assets and property, plant and
equipment |
|
31 |
41 |
Changes in financial assets |
|
4,580 |
1,799 |
Net cash flow from continuing investing
activities |
|
(2,843) |
(5,802) |
Net cash flow from investing activities
relating to discontinued operations |
|
(71) |
(29) |
Net cash flow from investing activities |
|
(2,914) |
(5,831) |
Financing activities: |
|
|
|
Transactions with non-controlling
interests (1) |
|
436 |
420 |
Dividends paid by parent company |
|
- |
(31) |
Dividends paid to non-controlling interests |
|
(122) |
(80) |
Purchases/sales of treasury shares |
|
- |
(16) |
Cash flows with shareholders |
|
314 |
293 |
Issuance of borrowings |
|
12,210 |
2,521 |
Repayment of borrowings |
|
(3,136) |
(3,778) |
Payments to bearers of perpetual subordinated bonds |
|
(286) |
(334) |
Funding contributions received for assets operated under
concessions |
|
50 |
68 |
Investment subsidies |
|
21 |
141 |
Other cash flows from financing activities |
|
8,859 |
(1,382) |
Net cash flow from continuing financing
activities |
|
9,173 |
(1,089) |
Net cash flow from financing activities relating to
discontinued operations |
|
(7) |
(61) |
Net cash flow from financing activities |
|
9,166 |
(1,150) |
Net
cash flow from continuing operations |
|
11,787 |
1,002 |
Net
cash flow from discontinued operations |
|
(19) |
(1) |
Net increase/(decrease) in cash and cash
equivalents |
|
11,768 |
1,001 |
CASH AND CASH EQUIVALENTS - OPENING BALANCE |
|
3,934 |
3,290 |
Net increase/(decrease) in cash and
cash equivalents |
|
11,768 |
1,001 |
Effect
of currency fluctuations |
|
(143) |
(49) |
Financial income on cash and cash equivalents |
|
19 |
8 |
Effect
of reclassifications |
|
(17) |
95 |
CASH AND CASH EQUIVALENTS - CLOSING BALANCE |
|
15,561 |
4,345 |
- Contributions via capital increases, or capital
reductions and acquisitions of additional interests or disposals of
interests in controlled companies. In 2020, 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
(€418 million at 30 June 2019).
- The published figures for 2019 have been restated due to
the impact of the change in the scope of E&P operations
presented as discontinued operations.
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 38.9
million customers (1), 28.8 million of which are in France. It
generated consolidated sales of 71.3 billion in 2019. EDF is listed
on the Paris Stock Exchange. |
(1) Customers are counted
since 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 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 ;
and this year, more particularly the effects of the health crisis
and the pace of business recovery in the various countries where
the Group is present.Detailed information regarding these
uncertainties and potential risks are available in the Universal
Registration Document (URD) of EDF filed with the Autorité des
marchés financiers on 13 March 2020, which is available on the
AMF's website at www.amf-france.org and on EDF’s website at
www.edf.fr, as well as in the 2020 half-year financial report
available on EDF’s website.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.
Ce communiqué de presse est certifié.
Vérifiez son authenticité sur medias.edf.com
|
Only print what you need. EDF SA 22-30, avenue de
Wagram 75382 Paris cedex 08Capital of €1,551,810,543552 081 317
R.C.S. Paris www.edf.fr |
|
CONTACTS Press: +33(0) 1 40
42 46 37 Analysts and investors: +33(0) 1
40 42 40 38 |
([1]) After deduction of
pumped-storage hydropower volumes, hydropower production stood at
22.7TWh for H1 2020 (17.1TWh at H1 2019).
([2]) Sum of personnel expenses
and other external expenses. At constant scope, standards, exchange
and pensions discount rates, and excluding inflation. Excluding
costs of sales from energy services activities, and Framatome’s
nuclear engineering services and specific projects such as
Jaitapur.
([3]) Excluding disposal plan
and excluding acquisitions.
([4]) Signed or completed disposals: impact on
Group’s economic debt.
- [5]) Payout ratio, based on net income
excluding non-recurring items, adjusted for the remuneration of
hybrid bonds accounted for in equity.
- [6]) Cash flow generated by operations is not
an aggregate defined by IFRS as a measure of financial performance,
and is not directly comparable with indicators of the same name
reported by other companies. This indicator, also known as Funds
from Operations (“FFO”), incorporates net cash flow from operating
activities after adjustment where relevant for the impact of
non-recurring effects, net investments (excluding 2019-2020
disposals, Hinkley Point C and Linky), as well as other items
including dividends received from associates and joint
ventures.
([7]) Net financial debt is not
defined in the accounting standards and is not directly visible in
the Group’s consolidated balance sheet. It comprises total loans
and financial liabilities, less cash and cash equivalents and
liquid assets. Liquid assets are financial assets consisting of
funds or securities with initial maturity of over three months that
are readily convertible into cash and are managed according to a
liquidity-oriented policy.([8]) The 2019 published
data (except NFD) have been restated for the impact of the change
in the scope of the ongoing E&P disposal. The ratio at
30 June 2020 is calculated based on cumulative EBITDA for the
second half of 2019 (restated) and the first half of 2020.
([9]) Breakdown of sales across
the segments, before inter-segment eliminations.
([10]) See press release of 2
July 2020.
([11]) Tariff change of +7.7%
excl. tax on 1 June 2019 and +3.0% excl. tax on 1 February 2020
(including half of the tariff catch-up).
([12]) Sum of personnel
expenses and other external expenses. At comparable
scope,standards, exchange rates and pension discount rates.
Excluding change in operating expenses service activities.
([13]) Regulated activities
including Enedis, Électricité de Strasbourg and island
activities.
([14]) Breakdown of sales
across the segments, before inter-segment eliminations.
([15]) Indexed adjustment of
TURPE 5 distribution tariff of +3.04% and the TURPE 5 transport
tariff of +2.16% at 1 August 2019.
([16]) The difference between
nominal and organic growth is due to intra-group transfers.
([17]) Breakdown of sales
across the segments, before inter-segment eliminations.
([18]) 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.
([19]) Breakdown of sales
across the segments, before inter-segment eliminations.
([20]) Group Energy Services include Dalkia;
Citelum, CHAM and service activities of EDF Energy, Edison, 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.
([21]) Breakdown of sales
across the segments, before inter-segment eliminations.
([22]) Breakdown of EBITDA
across the segments, before inter-segment eliminations.
([23]) Breakdown of sales
across the segments, before inter-segment eliminations.
([24]) The 2019 published
data have been restated for the impact of the change in the scope
of the ongoing E&P disposal.
([25]) The difference between
nominal and organic growth is due to intra-group transfers.
([26]) Breakdown of sales
across the segments, before inter-segment eliminations.
([27]) Luminus and EDF
Belgium.
([28]) Net capacity at Luminus
perimeter. Gross installed wind capacity amounted to 521MW at the
end of June 2020 (+15.8 %)
([29]) Breakdown of sales
across the segments, before inter-segment eliminations.
([30]) A full list of press
releases is available from the EDF website: www.edf.fr
([31]) La liste exhaustive des
communiqués de presse d’EDF Renouvelables est disponible sur le
site internet : www.edf-renouvelables.com
([32]) The complete list of
press releases is available on the website: www.edfenergy.com
([1]) Organic change at
comparable scope, standards and exchange rates.
([2]) Net income
excluding non-recurring items is not defined by IFRS, and is not
directly visible in the consolidated income statement. It
corresponds to the net income excluding non-recurring items and the
net change in fair value on energy and commodity derivatives,
excluding trading activities and excluding net changes in fair
value of debt and equity securities, net of tax.
([3]) Completion of the
nuclear island commun raft.
([4]) ‘Development
Consent Order’.
([5]) In number of
delivery sites.
([6]) On the basis of
the scope and exchange rates at 1 January 2020 and nuclear output
hypothesis in France of between 315TWh and 325TWh for 2020 and
between 330TWh and 360TWh each year in 2021 and 2022.
([7]) Sum of personnel
expenses and other external expenses. At constant scope, standards,
exchange and pensions discount rates, and excluding inflation.
Excluding costs of sales from Group Energy Service Activities, and
nuclear engineering services of Framatome and specific projects
such as Jaitapur.
([8]) Signed or completed
disposals: impact on Group’s economic debt.
([9]) The data published
for the 2019 fiscal year (except NFD) have been restated for the
impact of the change in the scope of the ongoing E&P
disposal.
([10]) Estimated figures. By
convention, no price effect in the context of the health crisis has
been attributed to the Covid-19 crisis.
- PR H1 2020- VDEF certified