Energia
EDF :Quarterly Financial Information at 31 March 2019 Sales up 1.7% Confirmation of 2019 targets and 2019-2020 ambitions
The Group's first quarter 2019 sales amounted to nearly €21.0 billion, up organically by 1.7% compared to the first quarter 2018.
This change was mainly driven by the France - Generation and supply activities segment in connection with favourable market conditions, the growth of the Group's energy services activities and strong performance by EDF Trading. Sales were also negatively impacted by activities in the United Kingdom due to the decrease in nuclear output in connection with the extension of plant outages and by the France - Regulated activities due to mild weather.
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Sales in France - Generation and supply activities in the first quarter of 2019 amounted to €8.1 billion, up 2.2% in organic terms compared to the first quarter of 2018.
Nuclear output amounted to 111.8TWh, down 1.1TWh compared to the first quarter of 2018, mainly due to a modulation of generation in a context of warmer temperatures and a higher volume of outages.
Hydropower output stood at 9.9TWh, down 32.2% (-4.7TWh) compared to the first quarter of 2018 due to less favourable hydrological conditions and to resource optimisation under consideration of the price environment.
The mild temperatures, compared to the first quarter of 2018, led to a 3.7TWh drop in end customer consumption over the quarter. The financial impact was limited to -€11 million compared to the first quarter of 2018, which had been strongly affected by mild weather in January leading to resales on low-priced markets.
The changes of regulated sale tariffs for electricity (for the part excluding the delivery component) had a negative impact of around €54 million due to the end of the tariff adjustment, in the absence of the tariff increase originally scheduled for 1 February 2019.
Downstream market conditions had a favourable effect of an estimated €331 million thanks to positive price effects correlated in particular to price trends on the wholesale forward markets.
The balance of purchases and sales on the wholesale market, including the energy component to end customers, had a negative impact on sales, estimated at €290 million, due to a lower sales volume.
Sales benefited from a positive spot price effect in January for the resale of the purchase obligations in the amount
of €101 million (neutral effect on EBITDA as the CSPE mechanism offsets expenses linked to purchase obligations).
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Sales in the France - Regulated activities segment in the first quarter 2019 amounted to €5.0 billion, down 2.6% in organic terms compared to the first quarter 2018.
The drop in volumes delivered in connection with mild weather, particularly in March, had an estimated negative impact of €170 million compared to the first quarter of 2018.
Sales benefited from the positive move in distribution tariffs for an estimated €19 million.
Moreover, price effects linked in particular to changes in the portfolio structure had an estimated favourable impact
of €17 million.
EDF Renewables
Sales for EDF Renewables amounted to €417 million, up 2.9% in organic terms compared to the first quarter of 2018.
This trend was driven by more favourable price effects and wind conditions, while the volumes produced were generally stable (4TWh or -0.1TWh compared to the first quarter of 2018) due to the disposals made at the end of 2018 and the beginning of 2019.
Total installed net capacity was broadly stable compared to the end of December 2018 and stood at 8.3GW.
On the other hand, the gross portfolio of projects under construction stood at a record level of 3.5GW gross (including 1.4GW in solar) at the end of the first quarter of 2019, i.e. +1.1GW compared to the end of December 2018.
Group Renewables
Sales for all Group Renewables activities amounted to €1.3 billion in the first quarter of 2019, down 5% from the first quarter of 2018 mainly due to lower hydropower generation in France, partially offset by the positive price effects of the commissioned wind power capacity.
Dalkia
Dalkia's sales amounted to €1.3 billion, up 7.8% in organic terms compared to the first quarter of 2018.
This improvement reflects the favourable trends in service contracts review indexes, the rise in fuel prices and sales development. The commercial dynamic continued with the creation of a new district heating network in
Charleville-Mézières in collaboration with the foundries of a PSA plant.
Group Energy Services
Sales in Group Energy Services amounted to €1.7 billion, up 8% in organic terms compared to the first quarter of 2018. They benefited in particular from the organic growth of Dalkia and Imtech.
The acquisition of Zephyro, an Italian operator active in the energy efficiency sector and in the supply of integrated energy management solutions, contributed to the development of energy services.
Framatome's sales amounted to €0.7 billion in the first quarter of 2019, down 4.0% organically.
This change is mainly due to timing effects on the first quarter of 2019 related to the year-on-year distribution of fuel assembly deliveries.
On the " ", sales experienced a drop in activity with Taishan, whereas Hinkley Point C is ramping up its activities.
The " was down slightly in comparison with its strong performance in the first quarter of 2018 in France.
In the United Kingdom, sales of €2.5 billion were down by 4.2% in organic terms compared to the first quarter 2018.
The decrease in sales was mainly due to the decline in nuclear generation and to a lesser extent to the suspension of the capacity market and the SVT (Standard Variable Tariff) price cap.
Nuclear output amounted to 12.6TWh, down 2.5TWh from the first quarter of 2018 due to the Hunterston B inspection and to the extension of Dungeness B outage.
Supply activity benefited from the good resilience of the residential customer portfolio, which is stabilising in a still very competitive environment, and from increasing sales volumes in the business customer segment.
In Italy, sales amounted to €2.4 billion, up 1.2% in organic terms compared to the first quarter 2018.
Sales from the electricity business (+€122 million in organic terms) grew thanks to higher sales volumes in the industrial customers segment and positive price effects.
In gas activities, sales were down (-€109 million in organic terms) due to a decrease in volumes sold on wholesale markets which was partially offset by an increase in volumes sold to industrial customers and a positive price effect.
Exploration-production activity was up (+€15 million in organic terms) in connection with the positive Brent price effect in Euros.
Sales in Other international amounted to nearly €0.8 billion, up 18.9% in organic terms compared to the first quarter of 2018.
In Belgium, sales increased by €59 million organically, reflecting in particular a rise in electricity and gas prices across all segments, partially offset by a slight decrease in volumes sold to residential customers due to mild weather. Wind capacity increased to 448MW, or +1.6% compared to the end of December 2018.
In Brazil, sales increased by €57 million in organic terms due to the positive effect of the annual review of EDF Norte Fluminense's power purchase agreement tariff that occurred at the end of 2018 and due to the impact of the change (without impact on EBITDA) of the ICMS tax.
Sales in Other activities amounted to nearly €0.9 billion, up 18.5% in organic terms compared to the first quarter of 2018.
Sales at EDF Trading were up €48 million organically. EDT Trading continues to benefit from positive volatility and took advantage of price conditions in European electricity and gas markets. The activities related to LNG (Liquefied Natural Gas) and LPG (Liquefied Petroleum Gas) also contributed to this performance in the first quarter of 2019.
Sales in the gas business increased by more than €176 million in organic terms in a favourable context for the LNG activity and in relation to better use of the Group's capacities.
Major Events
New investments, partnerships and investment projects
Development of renewable energies, EDF Renewables
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 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 39.8 million customers , 29.7 million of which are in France. It generated consolidated sales of €69 billion in 2018. EDF is listed on the Paris Stock Exchange.
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