Energia
EDF : Quarterly Financial Information at 31 March 2018
€20.4bn
Nuclear France: 112.9TWh +4.1%
Nuclear United Kingdom: 15.1TWh -5.6%
Group Renewables: 20.6TWh +31.4%
: 14.6TWh +35.2%
The Group's first quarter 2018 sales amounted to €20.4 billion, an organic increase of 3.0% compared to the first quarter 2017.
This increase is mainly driven by the France - Regulated activities segment, in line with the tariff changes, and the performance of EDF Trading, which benefited from an improved volatility and price environment linked to weather conditions in Europe and North America.
Sales in France - Generation and supply activities were relatively stable. The higher hydropower and nuclear output and the improvement in the price conditions were neutral on sales due to a net buying position (in euros) on the wholesale markets in the first quarter of 2018, as in the first quarter of 2017.
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Sales in France - Generation and supply activities in the first quarter of 2018 amounted to €8.0 billion, up 0.2% in organic terms compared to the first quarter of 2017.
Nuclear output amounted to 112.9TWh, an increase of 4.4TWh over the first quarter of 2017. This improvement can be explained by the better availability of the fleet at the beginning of the year compared to the first quarter of 2017, which was marked by several reactor outages linked to the manufacturing records at the Creusot Forge plant and by the "carbon segregation" issue. This performance is consistent with the assumption of a nuclear output greater than 395TWh in 2018. Hydropower output stood at 14.6TWh, up 35.2% (+3.8TWh) compared to the first quarter of 2017, thanks to more favourable hydro conditions. The higher hydropower and nuclear output and the improvement in the price conditions were neutral on sales due to a net buying position (in euros) on the wholesale markets in the first quarter of 2018, as in the first quarter of 2017.
The weather had a favourable effect, particularly in February and March 2018, with a positive impact of an estimated €94 million (+2.1TWh) compared to the first quarter of 2017.
Changes in the regulated sales tariffs , for the part excluding the delivery component, had a negative impact of around €20 million.
The downstream market conditions had a positive effect of an estimated €58 million. The negative impacts of the decline in sales to end customers were more than offset by favourable price effects, related notably to changes in the portfolio structure.
In addition, non-recurring items recorded in 2017 and without equivalent in 2018 weighed on sales for an estimated
-€120 million.
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Sales in the France - Regulated activities segment in the first quarter of 2018 amounted to €5.2 billion, up 6.7% in organic terms compared to the first quarter of 2017.
Sales benefited from the positive change in the distribution tariffs for an estimated €124 million and from favourable weather effects for around €90 million.
In addition, price effects related in particular to the change in the portfolio structure had a favourable impact estimated at close to €100 million.
EDF Énergies Nouvelles' contribution to Group sales amounted to €0.4 billion, up 14.7% in organic terms compared to the first quarter of 2017. This change was mainly due to the commissioning in 2017 of wind and solar power projects, which, together with the acquisition of Futuren, contributed to a 25% increase in output (+0.8TWh). Total installed net capacity increased by 24.7% over the first quarter of 2017 to 7.9GW.
Sales also benefited from the increase in distributed solar activities, notably by Grosolar in the United States, in the amount of +€15 million.
Finally, gross portfolio of projects under construction amounted to 1.7GW at the end of the first quarter of 2018.
Total Group Renewables contributed €1.3 billion to Group sales in the first quarter of 2018. This increase was driven by good hydro conditions in France and Italy, by the commissioning of new wind and solar farms in 2017 and by the improvement of wind conditions in Europe.
Dalkia's contribution to Group sales amounted to €1.2 billion, an organic increase of 4.0% compared to the first quarter of 2017, mainly due to the favourable evolution of gas and electricity prices and to the commercial expansion performed en 2017.
Sales for Group Energy Services amounted to €1.5 billion, up 11.8% compared to the first quarter of 2017. They benefited notably from the integration of Imtech in the United Kingdom (€92 million) and selective acquisitions in Italy and Belgium.
Framatome's sales amounted to €0.7 billion in the first quarter of 2018, a significant part of which was realised with the Group.
The French Nuclear Safety Authority authorised the resumption of manufacturing of forged parts for the French nuclear fleet at its Creusot site in January 2018.
With the acquisition of Schneider Electric's nuclear Instrumentation & Control (I&C) offering, Framatome is developing its engineering expertise and expanding its portfolio of I&C solutions.
Framatome and Vattenfall signed contracts for the delivery of fuel assembly reloads.
In the United Kingdom, sales were up 1.9%, in organic terms compared to the first quarter of 2017, to €2.6 billion.
Sales benefited from higher electricity residential tariffs, in line with increased supply costs, and higher gas volumes lifted by cold weather in the first quarter of 2018. The residential customer base was down 2% compared to the end of 2017.
Nuclear generation and realised nuclear prices were down. Nuclear output amounted to 15.1TWh, down 0.9TWh compared to the first quarter of 2017, due to the extended outage of Sizewell B into 2018 and the phasing effect from refuelling outages.
In Italy, sales amounted to €2.3 billion, up 3.5% in organic terms compared to the first quarter 2017.
Sales in Electricity activities were supported by higher sales volumes in the residential customer segment and by growth in hydro and wind power generation. These items were partially offset by a negative price effect.
Sales increased in Hydrocarbon activities thanks in particular to higher gas volumes sold to residential customers due notably to favourable weather conditions. Exploration-production activities benefited from a positive change in Brent prices and an increase in volumes.
Sales in the Other international segment amounted to €0.7 billion, up 0.9% in organic terms compared to the first quarter of 2017.
In Belgium, sales amounted to €528 million, up 1.2% in organic terms. This change reflects, in particular, an increase in gas volumes sold, partially offset by the drop in electricity volumes sold, particularly in the business segment, marked by increased competition. Wind power capacities were up +27% compared to the first quarter of 2017 to reach 380MW.
In addition, generation was affected by the extended outages at the Doel 3 and Tihange 3 nuclear power plants; these outages had no impact on first quarter 2018 sales.
In Brazil, sales were up, due to a slightly positive impact of an annual review of the Power Purchase Agreement tariff that took place at the end of 2017.
Sales in Other activities amounted to €0.8 billion, up 16.9% in organic terms compared to the first quarter of 2017.
EDF Trading's sales amounted to €267 million, up strongly by 110.7% in organic terms. It benefited from favourable price and volatility conditions in Europe and North America due to cold weather during the first quarter of 2018.
Major Events
New investments, partnerships and investment projects
Development of renewable energies, EDF Énergies Nouvelles
Edison
Framatome
Other significant events
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 adiversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 35.1 million customers, 26.5 million of which are in France. It generated consolidated sales of €70 billion in 2017. EDF is listed on the Paris Stock Exchange.
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 quarterly financial information is not subject to an auditor's report.
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 2018 , 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.
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