• Nuclear
- EDF, a major player in the “France 2030” and “France Relance” plans:
• France 2030: €1 billion in support for innovation in the nuclear sector, notably for SMRs (2)
• France Relance: creation by the French state of “Fonds France Nucléaire”, an investment fund to support the growth of SMEs in the nuclear sector
- EPR2:
• Break preclusion approach considered acceptable by the ASN (3)
• Safety standards now stabilised and shared with the ASN
- EPR: submission of a preliminary non-binding offer on engineering, procurement and construction services for four to six EPR reactors in Poland (from 6.6GW to 9.9GW)
- EPR Flamanville 3:
• No objection in principle from ASN to carry on with EDF solution (retainer clamp) for the processing of the design deviation of the 3 nozzles on the main primary circuit (4)
- “Grand Carénage”: Four ten-year inspections (fourth 10-year inspection) completed and three underway
- United Kingdom:
• Legislation introduced by the UK government establishing a funding scheme for new nuclear projects (Regulated Asset Base)
• UK government announcements:
✓ to invest up to £1.7 billion to enable a large-scale nuclear project to reach a final investment decision
✓ to be in active negotiations with EDF over the Sizewell C project
• Renewables
- Signature of a PPA for a 377MW solar project combined with a 600MWh battery energy storage system in California
- Winner of projects in South Africa combining solar, wind power and battery storage (735MW)
- Good progress on the construction of the first French offshore wind farm in Saint-Nazaire (5) notably with the offshore installation of the electrical substation (commissioning in 2022)
- Capacity under construction: 8.4GW gross (6) at end-September 2021, up 6% from end-2020
- Commissioned capacity: 1.5GW in the first nine months of 2021 (of which a 300MW solar plant in India in Q3) vs 0.7GW in the first nine months of 2020
• Customers and services
- EDF:
• The first energy utility certified “Relation Client France” by the AFRC (7) and the Pro France organisation association
• Nearly 1.3 million residential electricity customers in market offers in France, up c. 30% vs end-2020
• Nearly 1.8 million residential gas customers, up c. 5% vs end-2020
Citelum:
• Awarded, in a consortium, a 10-year Paris public lighting contract, generating an energy savings of around 30% for the city
Dalkia:
• Creation of a solution to monitor the operations and maintenance of 122 SNCF stations
• Agreement signed with Futuroscope on the creation of a green heating and air-conditioning network (8) using renewable energy (9)
• ENEDIS
Linky: approximately 33.7 million smart meters installed to date; completion of the programme at end-2021, as scheduled
New grid connections: +20% growth vs end-September 2020
Inauguration of a zero-emission generator prototype replacing fuel oil by solar charging and a battery system (200KWh of electricity, or more than three hours of autonomy at full power). This will notably ensure supply to customers during power outages due to works on the public electricity distribution grid
• Innovation
Hydrogen:
• Inauguration of the first Hynamics hydrogen generation and distribution station in Auxerre city
• Signature by Hynamics of a strategic partnership aimed at decarbonising the sites of the Vicat cement group using electrolysers with a capacity of 330MW as part of the IPCEI (10) financing programme
• EDF’s contribution to the creation of the largest investment fund dedicated to low-carbon hydrogen
Growth strategy in electric mobility confirmed:
• Pod Point:
✓ Strong sales growth
✓ 140,000 charging points rolled out and managed, up 47% vs end-2020
✓ Public listing (IPO) on the London Stock Exchange (11) completed, with EDF retaining a majority stake
• 160,000 charging points rolled out and managed by the EDF Group at end-September 2021
• Strong growth for Izivia, the leader in public electric charging (12) in France, having doubled its revenue versus end-September 2020
• International
Finalisation of financing for an innovative project combining solar and gas with the development of the largest solar plant (480MW) to date in Chile
• Italy
Arbitration against Qatargas (13) won by Edison, price increase claim on a long term gas contract rejected
• Finalisation of the €3 billion euros disposal plan well underway:
At end-September 2021: disposals signed or completed for circa €2.7 billion on the Group’s economic debt (14), equivalent to circa €2.0 billion on the Group’s net financial debt
Most recent transactions:
• Finalisation of the sale of CENG and the West Burton B thermal generation plant (1,332MW and 49MW battery)
• Exclusivity granted to preferred buyer for the 49% sell-down of Edison’s renewable platform, with closing expected by year-end
• Environment, Social and Governance
Improvement in non-financial performance ratings:
• ECOVADIS: platinum medal, the highest level (15)
• VIGEO: EDF ranked third out of 63 companies in the sector (16)
Ahead of COP26, EDF published its principles of “Just Transition” (17) in line with its "raison d'être" and in favour of all stakeholders: customers, employees, communities and suppliers
Results of the 2021 “Just Transition Assessment” by the World Benchmarking Alliance conducted in partnership with the CDP and ACT: a benchmark assessing the contribution of companies to a low-carbon energy transition while making sure to leave no-one behind.
EDF ranked (18):
• No. 1 on social and societal indicators
• No. 2 (ex aequo) on “just transition” indicators
• Credit rating
Moody's: upward revision of the outlook on EDF’s long-term credit rating, from Negative to Stable, and confirmation of A3 rating
2021 guidance
EBITDA (20) > €17.7bn
Net financial debt/EBITDA (20) < 2.8x
2022 ambitions
Operating expenses reduction (21) between 2019 and 2022 €500m
Group disposals 2020-2022 (22) ~€3bn
Net financial debt/EBITDA (20) ~3x
Dividend Target payout ratio of 2021 and 2022 net income excluding non-recurring items (23) 45-50%
The French State committed to opt for a scrip dividend payment for 2021 fiscal year
(1) Organic change at comparable scope, standards and exchange rates.
(2) Small Modular Reactors.
(3) ‘Autorité de Sûreté Nucléaire’, the French nuclear safety authority. Letter of 15 September 2021.
(4) Letter of ASN 8 October 2021.
(5) See 28 August 2021 press release.
(6) 8.4GW under construction at Group level at end-September 2021 (4.4GW of solar capacity, 1.9GW of wind capacity and 2.1GW of offshore capacity) compared with 8GW at end-December 2020.
(7) Association Française de la Relation Client (French customer relations organisation).
(8) Technology similar to that of heat pumps, circular economy, environmental protection.
(9) 40% reduction in greenhouse gas emissions for Futuroscope and 70% energy self-consumption by 2025.
(10) Important Project for Common European Interest.
(11) Trading started on 4 November 2021.
(12) According to a GIREVE study.
(13) See 20 September 2021 press release.
(14) Net economic debt according to Standard and Poor’s definition.
(15) In the top 1% (82/100 in 2021 vs 78/100 in 2020.
(16) The number two utilities group. 72/100 vs 71/100 in 2020.
(17) Read more about the principles of “Just Transition”.
(18) Ranking among 50 utilities and 180 companies (o/w 100 in the oil and gas sector and 30 in the automotive sector).
(19) Subject to additional reinforced sanitary restrictions impacts.
(20) On the basis of scope and exchange rates at 01/01/2021.
(21) Sum of personnel expenses and other external expenses. At constant scope, accounting 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.
(22) Signed or completed disposals: impact on Group’s economic debt (Standard and Poor’s definition).
(23) Payout ratio based on net income excluding non-recurring items, adjusted for the remuneration of hybrid bonds accounted for in equity.
NB: the entire press release is available in the PDF file