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PRESS RELEASE
14 novembre 2017 |
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Quarterly
Financial Information at 30 September 2017
Sales down slightly
Growth in renewable generation
Disposal plan execution confirmed
Key figures |
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Institutional
environment |
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Group
sales €49.7bn
-3.2% org.[1]
-1.3% org. excl. tariff adjustment[2]
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New energy mix trajectory[3]
expected by mid-2018 as part of the multi-annual energy programme
(PPE); 2025 deadline extended.
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Government action plan to accelerate the
development of renewable energies (during the first quarter of
2018).
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Agreement on the reform of the European carbon
market (EU ETS).
Highlights
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New green energy supply offers. Extension of the
Sowee offer with the supply of green energy and the remote control
of electric heating
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Expected expansion of Edison's customer
portfolio[4] (~+50%,
~500,000 customers)
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Creation of EDF Nouveaux Business
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Electricity Output
Nuclear France: 283.3TWh
Nuclear United Kingdom: 48.7TWh
Hydropower France: 28.6TWh |
-1.3%
+0.7%
-16.4% |
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At least €10
bn disposal plan between
2015 and 2020
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Sale of all of EDF Polska's assets to PGE
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Sale of real estate assets to Tikehau
Capital
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Disposal of some Edison gas assets
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2017
targets[5]
- Nuclear output: 383 - 387TWh
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EBITDA[6]:
€13.4 - 14.0bn
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Net financial debt/EBITDA6,[7]: ~
2.5x
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Payout ratio of Net income excl. non-recurring
items[8]: 55% to
65%
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2018
targets[9]
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Operating expenses[10]: -€0.8 bn compared to 2015
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EBITDA6: €14.6
- 15.3 bn
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Net investments[11]: ~€11bn
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Cash flow6,[12]:
~ 0
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Net financial debt/EBITDA6,7: <=
2.7x
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Asset disposals nearly complete at end 2018:
~€10bn
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Payout ratio of Net income excl. non-recurring
items8: 50%
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Targets beyond 2018 confirmed[13]
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2019 operating expenses10: Reduction >= €1bn
compared to 2015
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Asset disposals in 2015-2020: at least
€10bn
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Payout ratio of Net income excluding
non-recurring items8: 45% to
50%
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Change in EDF
group sales
In millions of euros |
9M 2016[14] |
9M 2017 |
% |
% organic |
% organic
Excluding 2014 tariff adjustment |
France - Generation and supply activities |
26,303 |
25,364 |
-3.6 |
-3.6 |
+0.2 |
France - Regulated activities |
11,269 |
11,334 |
+0.6 |
+0.6 |
+0.9 |
United Kingdom |
6,841 |
6,189 |
-9.5 |
-2.3 |
-2.3 |
Italy |
8,066 |
7,215 |
-10.6 |
-10.5 |
-10.5 |
Other activities |
5,155 |
5,298 |
+2.8 |
+0.9 |
+0.9 |
Other international |
3,811 |
3,607 |
-5.4 |
-0.8 |
-0.8 |
Inter-segment
eliminations |
(9,479) |
(9,287) |
-2.0 |
-2.0 |
-2.0 |
Total
Group |
51,966 |
49,720 |
-4.3 |
-3.2 |
-1.3 |
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The Group's sales during the first
nine months of 2017 came out at to €49.7 billion, down 3.2%
organically compared to the first nine months of 2016. Restated for
the impact of the 2014 tariff adjustment[15] of €-1,030
million, sales were down slightly (-1.3% in organic terms).
In France, sales in Generation and
supply activities were down 3.6% in organic terms, in connexion
with the 2014 tariff adjustment in 2016, without equivalent in
2017. Restated for this factor, sales were up 0.2% organically.
Sales in Regulated activities were
up 0.6% organically, driven by the positive impact of changes in
distribution tariffs. Restated for the impact of the 2014 tariff
adjustment15, sales were
up 0.9% in organic terms.
In the United Kingdom, the organic
decline of 2.3% in sales mainly reflects lower nuclear realised
prices.
In Italy, sales were down 10.5%
organically, reflecting mostly unfavourable impact from gas hedging
derivatives, which had no impact on the margin.
Sales in Other activities were up
0.9% organically, driven mainly by higher sales from Dalkia,
particularly as a result of favourable price trends.
Sales in the Other international
segment were down slightly (-0.8% in organic terms), mainly due to
the negative impact of the review of EDF Norte Fluminense's power
purchase agreement in Brazil which took place at the end of 2016.
On the other hand, sales were up in Belgium.
Change in Group
sales by segment
France -
Generation and supply activities
In millions of euros |
9M 2016 |
9M 2017 |
% organic |
% organic
Excluding 2014
tariff adjustment |
France - Generation and supply
activities |
26,303 |
25,364 |
-3.6 |
+0.2 |
Sales during the first nine months
of 2017 in the France - Generation and supply segment amounted to
€25.4 billion, down 3.6% organically compared to the first nine
months of 2016. Restated for the impact of the 2014 tariff
adjustment[16] in 2016
for a total of €-988 million, sales were up 0.2% in organic
terms.
Unfavourable weather, mainly at
the beginning of 2017, and the loss of one business day compared to
2016, penalised sales for an estimated total of €236 million.
The tariff change on 1 August 2016
and on 1 August 2017 contributed to a decrease in sales estimated
at €205 million[17]. Increased
competition also led to a drop in sales of €560 million.
ARENH subscriptions (61.4TWh)
contributed to a growth in sales of €2,578 million. Net sales in
the wholesale market decreased by an estimated €2,413
million[18] due to the
volumes transferred to the ARENH on the one hand and to lower
output on the other hand.
The implementation of the capacity
mechanism[19] had a
favourable impact of €457 million over the first nine months of
2017.
Finally, sales were up by €428
million due to other factors, in particular the increase in sales
of renewable electricity volumes subject to purchase obligations
(+€262 million).
Nuclear output at the end of
September stood at 283.3TWh, down 1.3% (3.8TWh) compared to the
same period in 2016, due to a higher volume of reactor outages.
The first nine months of 2017 were
marked in particular by the fact that the Bugey 5 and Paluel 2
reactors were offline, as were the Gravelines 5 and Fessenheim 2
reactors in connection with the manufacturing files of the Creusot
Forge plant. In addition, the unplanned outages at Flamanville 1
and Cattenom 1 also had an impact on nuclear power
output.
Following the temporary shutdown
of the generation units at the Tricastin plant[20], EDF
revised its nuclear output target for 2017 to 383 - 387TWh.
Hydropower output[21] amounted
to 28.6TWh[22], down
16.4% (-5.6TWh) compared to the first nine months of 2016 due to
much lower than normal hydro conditions since the beginning of the
year, the lowest since 2011.
As a result, greater demand was
placed on thermal power plants. Their output, up 4.4TWh compared to
the first nine months of 2016, reached 11.1TWh.
France -
Regulated activities
In millions of euros |
9M 2016 |
9M 2017 |
% organic |
% organic
Excluding 2014
tariff adjustment |
France - Regulated
activities |
11,269 |
11,334 |
+0.6 |
+0.9 |
Sales during the first nine months
of 2017 in the France - Regulated activities segment amounted to
€11.3 billion, up 0.6% organically compared to the first nine
months of 2016. Restated for the impact of the 2014 tariff
adjustment[23] for an
amount of €42 million, sales were up 0.9% in organic terms.
Sales benefited from the positive
change in the distribution tariffs for an estimated €127 million.
On the other hand, the effects of the weather and the 2016 leap
year contributed to a slight decrease in sales, estimated at €35
million.
Distributed volumes were down
slightly, in connection with improvements in energy efficiency.
United
Kingdom
In millions of euros |
9M 2016 |
9M 2017 |
% organic |
United Kingdom |
6,841 |
6,189 |
-2.3 |
In the United Kingdom, sales of
€6.2 billion were down 2.3% in organic terms compared to the first
nine months of 2016.
Sales were affected in particular
by a fall in realised nuclear prices.
Nuclear output amounted to
48.7TWh, +0.7TWh compared to the first nine months of 2016,
confirming the good operational performance of the nuclear fleet
thanks to favourable scheduling of the refuelling operations during
the first half of 2017 and good availability of the nuclear
fleet.
The volumes sold were down due to
a decline in demand for gas and electricity, attributable to
improvements in energy efficiency and milder weather.
In a highly competitive
environment, EDF Energy kept the number of customer accounts stable
compared to the first nine months of 2016.
Italy
In millions of euros |
9M 2016 |
9M 2017 |
% organic |
Italy |
8,066 |
7,215 |
-10.5 |
In Italy, sales amounted to €7.2
billion, down 10.5% in organic terms compared to the first nine
months of 2016.
In Hydrocarbon activities, sales
contracted due to the unfavourable impact from gas hedging
derivatives and changes in gas prices. This sharp decline had no
impact on the margin.
Sales of gas volumes also decreased despite an increase in
consumption by industrial clients and in generation from thermal
power stations.
In Electricity activities, sales
were also penalised by lower volumes sold, partially offset by a
favourable price effect.
Other
activities
In millions of euros |
9M 2016 |
9M 2017 |
% organic |
Other activities |
5,155 |
5,298 |
+0.9 |
Sales in the Other activities
segment amounted to €5.3bn, up 0.9% in organic terms compared to
the first nine months of 2016.
Sales for EDF
Énergies Nouvelles were down 1.4% in organic terms compared to
the first nine months of 2016. Generation output volumes continued
to grow (+3%) compared to the first nine months of 2016, mainly in
wind power (+5%). Net installed capacity increased by 0.9GW
compared to the end of September 2016, including the impact of the
Futuren acquisition (0.3GW). Gross capacity under construction
reached 2.4GW at the end of September 2017 compared to 1.8GW at end
2016. This downturn in sales is mainly attributable to the decrease
in Operation and Maintenance activities.
Sales from Dalkia grew 7.4%, mainly due to favourable changes in
service contract indexations, the positive effect of higher fuel
prices and good commercial development. Dalkia notably signed and
renewed a number of contracts, such as the energy management of the
St Louis hospital facilities in Paris, the global performance
management of buildings in the Hérault department (South of France)
over a period of eight years (geothermal, energy consulting
services), and the partnership with Toyota to meet its target of
'zero CO2 by 2015'.
Moreover, Imtech subsidiary acquired in July 2017 is now fully part
of the Group.
EDF Trading's
sales were down organically by 24.7%, due to low market volatility
and mild weather in the first half of the year, together with an
unfavourable price trend, particularly in the United States. EDF
Energy Services in the United States performed well throughout 2017
and above 2016.
Gas activities benefited from the
commercial start-up of the Dunkerque LNG terminal.
Other
International
In millions of euros |
9M 2016 |
9M 2017 |
% organic |
Other International |
3,811[24] |
3,607 |
-0.8 |
Sales in the Other international
segment amounted to €3.6 billion, down 0.8% in organic terms
compared to the first nine months of 2016.
In Belgium
sales were up 4.4% organically. This increase reflects in
particular the positive commercial development of service
activities. Installed wind capacity reached 330MW, up 12 % compared
to end-2016. Unfavourable price and volume effects on the
electricity and gas activities were partially offset by an increase
in electricity volumes in the business customers segment.
In Brazil,
sales were down 16.7% organically, mainly affected by the negative
impact of the review of
EDF Norte Fluminense's power purchase agreement, which took place
at the end of 2016.
Main
highlights[25]
since
the press release of 28 July 2017
Major highlights
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EDF finalized the disposal of EDF Polska's
assets to PGE (see press release of 14 November 2017)
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2018 targets update (see press release of 13
November 2017).
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EDF supports Dubai Electricity and Water
Authority (DEWA) in hydroelectric power plant project in the United
Arab Emirates (see press release of 9 November 2017).
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The Board of Directors decided to distribute an
interim dividend distribution of €0.15 per share for fiscal year
2017 (see press release of 7 November 2017).
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Disposal of a portfolio of around 200 office
real estate and business assets to Tikehau Capital (see press
release of 31 October 2017).
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2017 targets update (see press release of 27
October 2017).
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EDF is preparing for the next stage of system
performance testing at the Flamanville EPR, with a view to the fuel
loading and the reactor start-up at the end of the 4th quarter of
2018 (see press release of 9 October 2017).
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Temporary shutdown of the four generation units
of the Tricastin power plant (see press release of 28 September
2017).
New investments, partnerships and
investment projects
Development of renewable sources,
EDF Énergies Nouvelles[26]
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On 8 November 2017, EDF Énergies Nouvelles
commissioned 350MW in wind and solar energy capacity in
Brazil.
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On 6 November 2017, the EDF group commissioned
solar (87MWc) and wind
(164MW) plants in India through its subsidiary EDF Énergies
Nouvelles.
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On 26 October 2017, the EDF group entered the
Egyptian renewable energies market through its subsidiary
EDF Énergies Nouvelles with a partnership project with the ELSEWEDY
ELECTRIC Group to design, build and operate two solar power plants
(100MWAC).
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On 5 October 2017, EDF Énergies Nouvelles
announced that the installation of five turbines (the most powerful
installed at sea) off the coast Blyth was completed, marking the
last stage of the development of a prototype wind farm for future
fleets.
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On 15 September 2017, ÉDF Energies Nouvelles
signed a Virtual Power Purchase Agreement with Kimberly-Clark
Corporation for a new wind farm under construction in the
United-States (120MW).
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On August 10, 2017, EDF Énergies Nouvelles
joined forces with Canadian Solar for a 92.5MWc photovoltaic
project in Brazil.
Edison
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Edison signed a binding agreement[27] with Gas
Natural Fenosa for the acquisition of Gas Natural Vendita Italia
and the Shah Deniz II gas contract (see press release of 13 October
2017).
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Edison announced the sell of ITG
(Infrastructture Trasporto Gas) and 7.3% interest in Adriatic LNG
to Snam (see press release of 13 October 2017).
EDF Luminus
Other events
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The EDF group created EDF Nouveaux Business.
This company's mission is to provide new offers and innovative and
competitive services to customers (see press release of 19
September 2017).
-
EDF unveiled a new range of green energy
offers (see press release of 19 September 2017).
-
The EDF group launched Agregio, an aggregator
serving electricity producers and companies (see press release of
19 September 2017).
EDF
group, a leader in the European energy market, is an integrated
energy company active in all areas of the business: generation,
transmission, distribution, energy supply and trading. Leader in
low-carbon energy in the world, the Group has developed a
diversified generation mix based on nuclear power, hydropower, new
renewable energies and thermal power. The Group is involved in
supplying energy and services to approximately 37.1 million
customers accounts, 26.2 million of which are in France. The Group
generated consolidated sales of €71 billion in 2016. EDF is listed
on the Paris Stock Exchange.
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 certainty that the forecast events will
take place or that the 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,
changes in the general economic situation.
Detailed information regarding these uncertainties
and potential risks is available in the EDF Reference Document
filed with the Autorité des marchés financiers on 06 March 2017,
available on the AMF's website at
www.amf-france.org and on EDF's website at
www.edf.com.
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.
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Only print what you
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EDF SA
22-30, avenue de Wagram
75382 Paris cedex 08
Capital of €1,443,677,137
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
38
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[1] Organic
change at comparable scope and exchange rate; including -1.9%
impact related to the regularization of regulated sales tariffs for
the period starting from 1 August 2014 to 31 July 2015
following the French State Council's decision of 15 June 2016
[2]
Adjustment of the regulated sales tariffs for the period from 1
August 2014 to 31 July 2015 following the French State Council's
decision of 15 June 2016
[3]
Meeting of the Council of Ministers of the French Republic on 7
November 2017
[4] See
press release of 13 October 2017. Subject to European Competition
clearance
[5]
Please refer to the press release "2017 targets update" of 27
October 2017
[6] At
2016 exchange rate
[7] At an
assumed discount rate on nuclear provisions of 4.1% for 2017 and
3.9% for 2018
[8]
Adjusted for interest payments on hybrid bonds booked in equity
[9]
Please refer to the press release "2018 targets update" of 13
November 2017
[10] Sum of
personnel expenses and other external expenses. At constant scope
and exchange rates. At constant pension discount rates. Excluding
changes in operating expenses for the service activities
[11] Net
investments excluding Linky, new developments and asset disposals.
Linky is a project handled by Enedis, a subsidiary fully
independent from EDF as defined by the French Energy Code
[12] Cash
flow excluding Linky, new developments and asset disposals, with an
assumed discount rate on nuclear provisions of 4.1% in 2017 and
3.9% in 2018, excluding interim dividend for fiscal year 2018,
which will be decided in H2 2018; the 2018 cash flow target
aims for a slightly positive result or close to balance
[13] Please
refer to the press release of 28 July 2017
[14] As of
2016, breakdown of sales across the segment, before inter-segment
sales eliminations
[15]
Adjustment of the regulated sales tariffs for the period from 1
August 2014 to 31 July 2015 following the French State Council's
decision of 15 June 2016
[16]
Regularisation of the regulated sales tariffs for the period from 1
August 2014 to 31 July 2015 following the French State Council's
decision of 15 June 2016
[17] Excluding
impacts of the capacity mechanism implementation
[18] Excluding
additional required energy purchases on markets
[19]
Implementation of the capacity mechanism on 1 January 2017,
impacting tariffs, wholesale purchases/sales and market price
offers
[20] Please
refer to press releases of 28 September 2017 "Temporary shutdown of
the 4 reactors of the Tricastin nuclear power plant" and 27 October
2017 "2017 targets update"
[21] Hydropower
output excluding island activities before deduction of pumped
volumes
[22] Output
after deduction of pumped volumes: 29.3TWh over 9M 2016 and 23.5TWh
over 9M 2017
[23]
Regularisation of the regulated sales tariffs for the period from 1
August 2014 to 31 July 2015 following the French State Council's
decision of 15 June 2016 for island activities and the ES
subsidiary
[24] Including
EDF Démàsz sales in 2016, with no equivalent in 2017 considering
the sale of the subsidiary on 31 January 2017
[25] The
complete list of press releases is available on the wbsitet:
www.edf.fr
[26] The
complete list of EDF Énergies Nouvelles press releases is available
at: www.edf-energies-nouvelles.com
[27]
Subject to European Competition clearance
EDF PR Q3 2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions 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