Quarterly Financial Information - 3rd quarter 2019
Quarterly Financial Information at 30 September 2019
Sales up 2.9%(1)
Confirmation of 2019 targets and 2019-2020 ambitions
Group sales €50.9bn: +2.9% org. (1)
New developments in renewable energies
- Record level of EDF Renewables’ portfolio of projects under construction: 4.7GW gross (x2 vs end of December 2018)
- Wind power & Offshore:
- launch of construction of the first French offshore wind farm in Saint-Nazaire (480MW)
- acquisition of a 300MW portfolio of wind projects in Germany
- Solar: commissioning of 2 solar power plants in Benban, Egypt (130MWp) with a 25-year PPA
Storage and Electric Mobility Plans
- Acquisition of the British start up Pivot Power, specialised in battery storage and infrastructure for electric vehicle charging (portfolio of projects with a potential capacity of up to 2GW)
- Acquisition of PowerFlex Systems in the United States, a company combining solar energy generation and storage with smart charging solutions for electric vehicles or building load
- Nissan and the EDF group partner up to accelerate adoption of electric vehicles (smart charging solutions)
- ARENH: volume ceiling maintained for 2020 and price unchanged at this stage
- Energy savings certificates (CEE): one-year extension until 2021 of the 4th period (draft decree from the French Ministry of Ecological and Solidarity Transition submitted to the French State Council)
- Capacity mechanism in the United Kingdom: positive decision by the European Commission with the British government reinstating the Capacity mechanism
Customers and services
- Sales offensive : 460,000 residential electricity customers under market offers signed-up in France,
more than 1.5 million residential gas customers in France
- Dalkia: continued commercial development with the renewal or signing of new contracts (energy network at La Grande Motte and energy facilities for the Regional Council of Nouvelle Aquitaine)
- Taishan (EPR in China): commercial commissioning on 7 September 2019 of the unit 2, generation of more than 10TWh since the commissioning by the unit 1
- Hinkley Point C (2): project completion costs revised to £21.5 - 22.5bn (3)
- Flamanville 3 (4): estimated construction cost revised to €12.4bn (5) with fuel loading expected at end-2022, start of the second hot functional test phase on site
- Fessenheim (6): protocol agreement whereby the State will compensate EDF for the early closure of the power plant. This compensation will comprise initial instalments for a total of nearly €400m
- Linky : installation of the 21 millionth smart meter at end September
2019 targets Including IFRS 16 impact
- EBITDA (7): €16.0 - 16.7 bn
- Reduction in operating expenses (8): ~ €1.1bn vs. 2015
- Cash flow excluding HPC and Linky: >€600m (9)
2019-2020 ambitions including IFRS 16 impact
- Total net investments(10) excluding acquisitions and “Group 2019-2020 disposals”: ~ €15bn in 2019, ~ €15.5bn in 2020
- Group 2019-2020 disposals: €2 to 3 bn
- Net financial debt/EBITDA (7) (10): = 2.7x
- Dividend: Target payout ratio of Net income excluding non-recurring items (11): 45 50%
The French State has committed to scrip dividends relating to 2019 and 2020
NB: see the whole press release in the PDF file opposite
Footnotes to the first and second pages
(1) Organic change at comparable scope and exchange rates.
(2) See press release of 25 September 2019.
(3) In 2015 pound sterling, excluding interim interest and excluding foreign exchange compared to a reference exchange rate for the project of 1 pound = 1.23 euros.
(4) See press release of 09 October 2019.
(5) In 2015 euros, excluding interim interest.
(6) See press release of 30 September 2019.
(7) On the basis of the scope and exchange rates at 01/01/2019 and of an assumption of a 384-388TWh range for France nuclear output.
(8) Sum of personnel expenses and other external expenses. At comparable scope, IFRS 16 standard and exchange rates. At constant pension discount rates. Excluding change in operating expenses of the service activities.
(9) The impact of IFRS 16 on cash-flow corresponds to the increase in EBITDA, less the financial interests on the IFRS 16 net financial debt.
(10) For 2020: In accordance with the scenario adopted by the Group concerning the construction costs and schedule of the Flamanville 3 project (see press release of 09 October 2019).
(11) Adjusted for the remuneration of hybrid bonds accounted for in equity.
(12) Edison's Exploration and Production (E&P) business was classified as a discontinued operation within the meaning of IFRS 5 as of 1 January 2019. The comparative figures for 2018 have been restated to reflect the impact of the presentation of the E&P activities that are being sold.
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