| PRESS RELEASE 26 July 2019 | |||
2019 half-year results
Stable EBITDA
Confirmation of 2019 targets and 2019-2020 ambitions
Key figures of the 2019 half-year results (1) | Deployment of CAP 2030 | ||||||||
EBITDA | €8.3bn +0.1% org.(2) | Renewable energies
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Net income excluding non-recurring items (3) | €1.4bn -19.4% | ||||||||
Net income – Group share | €2.5bn +44.7% | ||||||||
Electricity generation Nuclear France 203.7TWh Nuclear United Kingdom 24.5TWh Group Renewables 31.4TWh o/w Hydropower France 20.1TWh | +0.5% -18.8% -23.8% -31.6% | ||||||||
Strengthened financial structure
€1,072m vs. 2015 Control of net financial debt
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2019 targets (6) including IFRS 16 impact |
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2019-20 ambitions(6) including IFRS 16 impact |
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EDF’s Board of Directors meeting on 25 July 2019, under the chairmanship of Jean-Bernard Lévy, approved the condensed consolidated financial statements at 30 June 2019.
Jean-Bernard Lévy, EDF’s Chairman and CEO stated: “The first half-year results in 2019 are in line with our forecasts. Bolstered by a strengthened balance sheet, the Group is continuing its deployment of the CAP 2030 strategy and confirms its annual targets. The professionalism of our teams has made possible to achieve major milestones in the Grand Carenage, HPC and Taishan projects, and to bring about some major successes in the solar and off-shore wind power sectors. At the same time, the Group is constantly innovating for energy transition, paving the way for new offers that are totally in step with our clients’ lifestyles.“
Change in EDF Group’s results
(in millions of euros) | H1 2018 (12) restated | H1 2019 (1) | Change (%) | Organic change (%) |
Sales | 34,962 | 36,469 | +4.3 | +3.7 |
EBITDA | 8,062 | 8,346 | +3.5 | +0.1 |
EBIT | 3,595 | 3,672 | +2.1 | |
Net income – Group share | 1,726 | 2,498 | +44.7 | |
Net income excluding non-recurring items (3) | 1,739 | 1,402 | -19.4 |
Change in EDF Group’s EBITDA
(in millions of euros) | H1 2018 (12) restated | H1 2019 (1) | Organic change (%) |
France - Generation and supply activities | 3,578 | 3,971 | +6.5 |
France - Regulated activities | 2,663 | 2,578 | -6.3 |
EDF Renewables | 360 | 405 | +1.9 |
Dalkia | 159 | 195 | +13.2 |
Framatome | 86 | 74 | -43.0 |
United Kingdom | 485 | 128 | -75.9 |
Italy | 238 | 328 | +28.2 |
Other international | 117 | 166 | +35.9 |
Other activities | 376 | 501 | +55.9 |
Group total | 8,062 | 8,346 | +0.1 |
EBITDA in first-half 2019 was stable on first-half 2018, benefitting from favourable market conditions in France and a very strong performance by EDF Trading. However, it was negatively impacted by the unfavourable trend in TURPE 5 distribution tariff indexation and increase in expenses for contributions to the Electricity Equalisation Fund in French regulated activities, and by the deterioration of conditions in the UK, (introduction of a cap on standard variable tariffs (SVTs), suspension of capacity revenues and downturn in nuclear generation).
Footnotes to the first and second pages
(1) The financial statements at 30 June 2019 have been prepared in accordance with IFRS 16 as from 1 January 2019 (use of the modified retrospective method). Comparative figures have not been restated in accordance with the transitional provisions of the standard.
(2) Organic change at comparable scope, IFRS 16 standard and exchange rates.
(3) Net income excluding non-recurring items is not defined by IFRS and does not appear directly in the Group's consolidated income statement. It corresponds to net income excluding non-recurring items, excluding net changes in fair value on energy and raw materials derivatives, trading activities and net changes in the fair value of debt securities and shareholders' equity net of tax.
(4) Enterprise value of US$750m, with an additional consideration of US $100m contingent on the commissioning of the Cassiopea gas development project in Italy. Edison could also receive royalties associated with further potential developments in Egypt, which would bring the aggregate value to c. US $930m.
(5) Net financial debt increased by €4.5bn in connection with the implementation of IFRS 16 on 1 January 2019.
(6) With unchanged legal and regulatory environment in France.
(7) Based on the scope and exchange rates at 01/01/2019 and assumptions for nuclear generation in France of 395TWh.
(8) Sum of personnel expenses and other external consumption. At comparable scope, IFRS 16 and exchange rates. At constant pension discount rates. Excluding changes in operating expenses from service activities.
(9) The impact of IFRS 16 on cash-flow is derived from the increase in EBITDA, reduced by financial interests on the IFRS 16 net financial debt.
(10) For 2020: depending of the impact, currently under assessment, of the decision of the French Nuclear Authority of 19 June 2019 on the schedule and completion cost of the Flamanville 3 project.
(11) Adjusted for the remuneration of hybrid loans recognised in equity.
(12) The disposal of Edison's Exploration and Production (E&P) activity was classified as a discontinued operation within the meaning of IFRS 5 as of 1 January 2019. The data published for the 2018 financial year have been restated for the impact of the presentation of the E&P activity in the process of being sold.
Operational performance
Nuclear output in France totalled 203.7TWh, up 1.1TWh compared to first-half 2018 owing to improved fleet availability.
Hydropower output in France came to 20.1TWh ([1]), down 31.6% (-9.3TWh) on first-half 2018. This can be attributed to particularly unfavourable hydro conditions, with first-half 2019 ranking as the second driest half-year over the last 30 years.
Nuclear output in the United Kingdom amounted to 24.5TWh, down 5.7TWh compared with first-half 2018. The contraction resulted from the extension of Hunterston B and Dungeness B outages.
In Italy, electricity generation and ancillary services increased significantly over the first half of the year.
In Belgium, both nuclear and wind power generation increased.
EDF Renewables output amounted to 7.5TWh. As expected, the total was down slightly (by 0.3TWh) compared to the first-half 2018 owing to the disposals completed in late-2018 and early-2019. The gross portfolio of projects under construction at 30 June 2019 reached a record level of 4GW, equally balanced between onshore wind power and solar power.
Net income
The financial result corresponds to a financial expense of €130m in first-half 2019, an improvement of €1,488m compared to the first-half 2018. This resulted primarily from the positive variation in the fair value of the portfolio of dedicated assets in line with the performance of the equity and bond markets in the first half of the year. This variation in fair value is not included in the calculation of net income excluding non-recurring items.
Net income excluding non-recurring items totalled €1,402m at end-June 2019, down €337m compared to the first-half 2018, owing in particular to an increase in financial expenses and net depreciation and amortisation consistent with the trend in investments in the nuclear segment.
Net income – Group share came to €2,498m in first-half 2019, up 44.7% owing to the financial result.
Cash flow and net financial debt
Net investments excluding 2019-2020 disposals, Hinkley Point C and Linky (2) amounted to €5,695m in first-half 2019, for an increase of €559m. This can be attributed mainly to an increase in investments in nuclear maintenance.
Operating cash flow stood at €2,505m, down €1,182m compared to the first-half 2018, the consequence notably of an increase in investments and a lower contribution from the variation in the working capital requirement.
Group cash flow ([3]) totalled €1,049m, down €497m, stabilising the group's net financial debt for two consecutive half year.
31/12/2018 | 30/06/2019 ([4]) | |
Net financial debt([5]) (in billions of euros) | 33.4 | 37.4 |
Net financial debt/EBITDA([6]) | 2.2x | 2.4x |
The Group’s net financial debt stood at €37.4bn at end-June 2019. Excluding the impact of IFRS 16, it was down €506m compared with 31 December 2018.
Main Group results by segment
France – Generation and supply activities
(in millions of euros) | H1 2018 | H1 2019 ([7]) | Organic change (%) |
sales (8) | 13,652 | 14,299 | +4.5 |
EBITDA | 3,578 | 3,971 | +6.5 |
Sales in France - Generation and supply activities in the first half of 2019 amounted to €14,299 million, up +4.5% in organic terms compared to the first half of 2018.
The contribution to Group EBITDA by the segment amounted to €3,971 million, +6.5% in organic terms compared to the first half of 2018.
The substantial decrease in hydropower output (-8.4TWh (9)), only very slightly offset by a rise in nuclear output (+1.1TWh), had an unfavourable impact on EBITDA estimated at -€342 million.
Better conditions on the wholesale markets had a positive effect estimated at +€114 million.
On the downstream market (10), the positive price movements on market-price offers more than made up for erosion of market shares (-8.4TWh including losses of volumes for customers on the regulated sales tariffs). This resulted in a positive impact of +€305 million compared to the first half of 2018.
The weather in the first half of 2019 had a favourable impact estimated at+ €40 million.
Regarding regulated sales tariffs (11), the tariff rise at 1 June 2019 and the tariff reduction in August 2018 (reflecting the completion of the repayment of the 2012-2013 tariff catch-up component) led to an estimated rise in EBITDA of +€26 million (excluding energy savings certificates) compared to the first half of 2018.
Operating expenses ([12]) were reduced by €173 million (-4.2%).
A number of factors had a total effect of -€85 million on EBITDA, principally the rise in costs to meet energy savings certificates obligations partially offset by net reversals from provisions.
France – Regulated activities (13)
(in millions of euros) | H1 2018 | H1 2019 ([14]) | Organic change (%) |
Sales (15) | 8,405 | 8,307 | -1.2 |
EBITDA | 2,663 | 2,578 | -6.3 |
Sales in France - Regulated activities in the first half of 2019 amounted to €8,307 million, down -1.2% in organic terms compared to the first half of 2018.
EBITDA for the segment stood at €2,578 million, -6.3% in organic terms compared to the first half of 2018.
EBITDA was affected by indexations on the TURPE 5 tariffs (16) with an estimated impact of
-€68 million, and the unfavourable weather effect, with an estimated impact of -€36 million.
Other factors had a combined estimated negative impact of -€128 million on EBITDA: they mainly related to an increase in expenses for contributions to the Electricity Equalisation Fund ([17]), and the negative effect of changes in provisions for employee benefit obligations.
This evolution is partially offset by a growth in the grid connection services (+€21 million) and the decrease of operating expenses ([18]) (-€43 million).
Renewable energies
EDF Renewables
(in millions of euros) | H1 2018 | H1 2019 ([19]) | Organic change (%) |
Sales (20) | 735 | 776 | +2.2 |
EBITDA | 360 | 405 | +1.9 |
of which EBITDA generation | 435 | 472 | + 2.4 |
Sales in EDF Renewables in the first half of 2019 amounted to €776 million, up 2.2% in organic terms compared to the first half of 2018.
EDF Renewables’ contribution to Group EBITDA was €405 million, corresponding to organic growth of +€7 million (+1.9%) compared to the first half of 2018.
EBITDA from generation recorded an organic increase of 2.4% compared to the first half of 2018, despite the disposals completed in late 2018 and early 2019. This change is primarily attributable to price effects and more favourable wind conditions.
Development and sales of structured assets were supported by disposals undertaken in the early part of the year, notably in US and Poland.
In addition, development costs and head office costs rose, particularly to support growth.
At 30 June 2019, the net installed capacities totalled 8GW, stable overall from 31 December 2018. The gross portfolio of projects under construction at 30 June 2019 reached a record level of 4GW, equally balanced between onshore wind power and solar power.
Group Renewables ([21])
(in millions of euros) | H1 2018 | H1 2019 (1) | Change (%) | Organic change (%) |
Sales (2) | 2,352 | 2,134 | -9 | -11 |
EBITDA | 1,106 | 881 | -20 | -24 |
Net investissements | (424) | (489) | +15 |
EBITDA for all of Group Renewables amounted to €881 million in the first half 2019, down 24% in organic terms owing to unfavourable hydro conditions in first-half 2019.
Energy services
Dalkia
(in millions of euros) | H1 2018 | H1 2019 ([22]) | Organic change (%) |
Sales (23) | 2,009 | 2,152 | +6.4 |
EBITDA | 159 | 195 | +13.2 |
Sales in Dalkia in the first half of 2019 amounted to €2,152 million, up 6.4% in organic terms compared to the first half of 2018.
Dalkia’s EBITDA for the first half of 2019 was €195 million, corresponding to year-on-year organic growth of €21 million (+13.2%).
The growth in EBITDA reflects the dynamic sales activity, particularly in heat networks and energy performance contracts (signing of a new multiservice contract with Safran covering 26 sites, a new public service delegation for urban heating in Grande Île at Vaulx-en-Velin and Villeurbanne for 15.5 years). It also benefited from the commissioning at the end of 2018 of several cogeneration installations at industrial sites.
Furthermore, this growth was driven by sales of energy savings certificates in excess of the regulatory obligations, which were concentrated in the first half of the year whereas in 2018 they took place in the second half of the year.
Group Energy Services (24)
(in millions of euros) | H1 2018 | H1 2019 (1) | Change (%) | Organic change (%) |
Sales (2) | 2,605 | 2,873 | +10 | +6 |
EBITDA | 214 | 216 | +1 | +7 |
Net Investissements | (99) | (107) | +8 |
EBITDA for Group Energy Services amounted to €216 million in the first half of 2019, up 7% in organic change thanks to positive evolution of Dakia.
Framatome
(in millions of euros) | H1 2018 | H1 2019 ([25]) | Organic change (%) |
Sales (26) | 1,500 | 1,537 | +1.1 |
EBITDA (27) | 194 ([28]) | 207 | -6.2 |
EBITDA EDF group contribution | 86 (4) | 74 | -43.0 |
Sales in Framatome in the first half of 2019 amounted to €1,537 million, up +1.1% compared to the first half of 2018. A significant share of sales was realised with other entities of the Group.
Framatome’s EBITDA was €207 million, -6.2% in organic terms, including the margin realised with other EDF group entities. Framatome’s contribution to Group EBITDA for the first half 2019 stood at €74 million.
The “Fuel” business retreated in the first half of 2019, due to lower production levels at the European plants and unfavourable phasing effects during the first half of 2019.
The “Installed base” business improved its performance in the US and Germany (80% exports) in a highly competitive market, but was affected in France by project execution costs for export and French customers.
The “Components” business is recovering profitability, and continued the step-up in production initiated in 2018 concerning equipment to replace steam generators and equipment for new projects.
Framatome’s EBITDA also benefited from continuation of the operating and structure costs reduction plan.
United Kingdom
(in millions of euros) | H1 2018 | H1 2019 ([29]) | Organic change (%) |
Sales (30) | 4,605 | 4,536 | -2.2 |
EBITDA | 485 | 128 | -75.9 |
In the United Kingdom, sales amounted to €4,536 million in the first half of 2019, down 2.2% in organic terms.
EBITDA amounted to €128 million, down 75.9% in organic terms compared to June 2018.
EBITDA was adversely affected by lower nuclear output, the setting up from 1 January 2019 of SVT (Standard Variable Tariff) price cap and the suspension of the capacity market.
Nuclear output amounted to 24.5TWh, down 5.7TWh compared to June 2018 due to the extension of Hunterston B and Dungeness B outages.
Residential customer accounts were slightly lower (-1.1%) compared to end 2018 in a highly competitive environment.
Italy
(in millions of euros) | H1 2018 restarted ([31]) | H1 2019 ([32]) | Organic change (%) |
Sales (2) | 3,900 | 4,029 | +0.3 |
EBITDA | 238 | 328 | +28.2 |
In Italy, sales in the first half of 2019 reached €4,029 million, up 0.3% in organic terms from the first half of 2018. EBITDA recorded an organic increase of 28.2% to €328 million.
The electricity activities registered a good performance, essentially due to higher generation output, the contribution of electricity ancillary services, and commissioning of new wind farms (+115MW).
EBITDA for the gas activities was also up. In the first half of 2018 it had been affected by an unfavourable price effect relating to wholesale market purchases in a period of sourcing pressures.
EBITDA for the retail activity was down slightly year-on-year. The margins on electricity were lower, particularly in the residential customer segment. Margins for gas improved, especially in the industrial customer segment
Other international
(in millions of euros) | H1 2018 | H1 2019 ([33]) | Organic change (%) |
Sales (34) | 1,147 | 1,365 | +18.2 |
EBITDA | 117 | 166 | +35.9 |
Sales in the Other international segment amounted to €1,365 million, up 18.2% in organic terms compared to the first half of 2018. EBITDA recorded an organic increase of 35.9% to €166 million.
In Belgium (35), EBITDA showed an organic increase of +€14 million (+17.7%). The performance of thermal generation has a positive effect on EBITDA estimated at +€17 million at 30 June 2019. Production of renewable energy benefited from the increase in installed wind power capacities, which totalled 450MW at 30 June 2019 (up by +15% compared to 30 June 2018). Service activities are continuing to grow. Supply activities are still marked by the strongly competitive environment.
EBITDA in Brazil also showed organic growth of +€33 million, largely due to the +16% adjustment to the Power Purchase Agreement (PPA) price in November 2018, and a smaller maintenance programme than in 2018 which meant that lower energy purchases were needed to cover the PPA requirements.
Other activities
(in millions of euros) | H1 2018 | H1 2019 ([36]) | Organic change (%) |
Sales (2) | 1,284 | 1,670 | +33.6 |
EBITDA | 376 | 501 | +55.9 |
Sales in Other activities amounted to €1,670 million, up 33.6% in organic terms over the first half of 2018. EBITDA recorded an organic increase of 55.9% to reach €501 million.
EBITDA at EDF Trading amounted to €477 million in the first half of 201, an organic increase of 44.2% compared to first half 2018.
EDF Trading turned to its advantage movements in European market prices in the first half of 2019, which was marked by a particularly significant decrease in gas prices, and took positions which are profitable at 30 June 2019. Its activities on the international energy markets, LNG (Liquefied Natural Gas) and LPG (Liquefied Petroleum Gas) also contributed to this performance.
EDF and Jera broadened their partnership to include LNG optimisation and trading activities since 1 April 2019.
Main events (37)
since the 2019 first quarter press release
Major Events
- EDF signed two bilateral sustainable revolving credit facilities with Crédit Agricole CIB and Societe Generale CIB, bringing the total of its sustainability-linked loans to over €5 billion (see press release of 22 July 2019)
- EDF Group successfully completed its offer reserved for employees and former employees (see press release of 10 July 2019)
- EDF launched “Mes jour zen” (see press release of 19 June 2019)
- Results of the option for the payment of the balance of the dividend to be paid out on the 2018 financial year (see press release of 17 June 2019)
- EDF acquired Energy2market (e2m) and strengthen its position in the field of decentralized energy management in Europe (see press release of 13 June 2019).
- EDF launched DREEV, its new subsidiary to turn innovative smart charging solutions into a reality (see press release of 20 May 2019).
- Annual general meeting and board of directors meeting of 16 May 2019: All the resolutions were adopted. The Board of Directors moved to renew the mandate of Jean-Bernard Lévy as Chairman and CEO (see press release of 16 May 2019).
EDF Renouvelables (38)
- The Council of State approved the final administrative permits for the Fécamp and Courseulles-sur-Mer offshore wind farm projects (see press release of 24 July 2019).
- EDF Renewables and Total Eren signed Power Purchase Agreements for more than 700MWp of solar energy in India (see press release of 8 July 2019).
- EDF Renewables announced the commissioning of its very first solar power plant in Mexico (see press release of 4 July 2019).
- EDF-led consortium selected for the Dunkirk offshore wind power project (see press release of 14 June 2019).
- The Council of State approved the Saint-Nazaire offshore wind farm operating permit (see press release of
7 June 2019). - Consortium of EDF, Masdar and Green of Africa named as successful bidder for Morocco’s landmark Noor Midelt I solar project with an installed capacity of 800MW, a world first hybrid solar and storage technology (see press release of 22 May 2019).
- EDF Renewables and WiSEED launched participative financing relative to the Toucan 2 solar project with storage in French Guiana (see press release of 6 May 2019).
- EDF Renewables secured a 20-year Power Purchase Agreement following auctions in Greece for a future 60MWp solar plant located near Athens (see press release of 6 May 2019).
Group Energy Services
- Inauguration of the biomass boiler of the Roanne heating network (see press release of 19 June 2019).
- Grand Poitiers: the heating network will be heated with straw (see press release of 5 June 2019).
Nuclear industry
- Hinkley Point C has hit its biggest milestone yet on schedule (see EDF Energy’s press release
of 28 June 2019, available on the website www.edfenergy.com). - Flamanville EPR: EDF is reviewing decision from French Nuclear Safety Authority (see press release of 20 June 2019).
- Current review of 3 different scenarios to upgrade the penetration welds
- After a detailed examination of the 3 scenarios and exchanges with the Nuclear Safety Authority, communication by the Group in the coming months of the impacts on schedule and costs
- At this stage, commissioning cannot be expected before end of 2022
Group Disposal
- Edison announced the signing of the agreement to sell Edison Exploration and Production to Energean oil and gas (see press release of 4 July 2019).
- EDF announced the completion of the disposal of its 25% stake in Alpiq (see press release of 28 May 2019).
Others highlights
- Changes within the EDF Group’s Executive Committee (see press release of 20 May 2019).
APPENDICES
Consolidated income statement
(in millions of euros) | H1 2019 (1) | H1 2018 (2) | |
Sales | 36,469 | 34,962 | |
Fuel and energy purchases | (17,951) | (16,770) | |
Other external expenses | (3,655) | (3,989) | |
Personnel expenses | (6,963) | (6,815) | |
Taxes other than income taxes | (2,810) | (2,691) | |
Other operating income and expenses | 3,256 | 3,365 | |
Operating profit before depreciation and amortisation | 8,346 | 8,062 | |
Net changes in fair value on energy and commodity derivatives, excluding trading activities | 350 | 19 | |
Net depreciation and amortisation | (4,776) | (4,307) | |
Net increases in provisions for renewal of property, plant and equipment operated under concessions | (54) | (66) | |
(Impairment)/reversals | (45) | (57) | |
Other income and expenses | (149) | (56) | |
Operating profit | 3,672 | 3,595 | |
Cost of gross financial indebtedness | (925) | (782) | |
Discount effect | (1,801) | (1,697) | |
Other financial income and expenses | 2,596 | 861 | |
Financial result | (130) | (1,618) | |
Income before taxes of consolidated companies | 3,542 | 1,977 | |
Income taxes | (1,020) | (582) | |
Share in net income of associates and joint ventures | 352 | 365 | |
Net income of discontinued operations | (410) | (7) | |
GROUP NET INCOME | 2,464 | 1,753 | |
EDF net income | 2,498 | 1,726 | |
Net income of continuing operations | 2,898 | 1,733 | |
Net income of discontinued operations | (400) | (7) | |
Net income attributable to non-controlling interests | (34) | 27 | |
Net income of continuing operations | (24) | 27 | |
Net income of discontinued operations | (10) | 0 | |
Earnings per share (EDF share) in euros: | |||
Basic earnings per share | 0.72 | 0.46 | |
Diluted earnings per share | 0.72 | 0.46 | |
Earnings per share of continuing operations | 0.85 | 0.46 | |
Diluted earnings per share of continuing operations | 0.85 | 0.46 |
- The financial statements at 30 June 2019 apply IFRS 16 from 1 January 2019 (using the modified retrospective approach).In accordance with the new standard’s transition provisions, the comparative figures have not been restated.
- The published figures for 2018 have been restated due to the impact of presenting Edison’s E&P operations as operations held for sale.
In application of IFRS 5, the net income of operations held for sale is presented on a separate line of the income statement for the financial periods presented. The impact of application of IFRS 5 on the published figures for 2018 is presented.
Consolidated balance sheet
ASSETS (in millions of euros) | 30/06/2019 (1) | 31/12/2018 | |
Goodwill | 10,210 | 10,195 | |
Other intangible assets | 9,953 | 9,918 | |
Property, plant and equipment operated under French public electricity distribution concessions | 57,284 | 56,515 | |
Property, plant and equipment operated under concessions for other activities | 6,792 | 7,339 | |
Property, plant and equipment used in generation and other tangible assets owned by the Group | 84,273 | 78,252 | |
Investments in associates and joint ventures | 7,609 | 8,287 | |
Non-current financial assets | 40,252 | 37,104 | |
Other non-current receivables | 2,140 | 1,796 | |
Deferred tax assets | 1,273 | 978 | |
Non-current assets | 219,786 | 210,384 | |
Inventories | 14,066 | 14,227 | |
Trade receivables | 14,165 | 15,910 | |
Current financial assets | 28,913 | 31,143 | |
Current tax assets | 280 | 869 | |
Other current receivables | 6,615 | 7,346 | |
Cash and cash equivalents | 4,345 | 3,290 | |
Current assets | 68,384 | 72,785 | |
Assets held for sale | 1,555 | - | |
TOTAL ASSETS | 289,725 | 283,169 |
- The financial statements at 30 June 2019 apply IFRS 16 from 1 January 2019 (using the modified retrospective approach).In accordance with the new standard’s transition provisions, the comparative figures have not been restated.
EQUITY AND LIABILITIES (in millions of euros) | 30/06/2019 (1) | 31/12/2018 | |
Capital | 1,525 | 1,505 | |
EDF net income and consolidated reserves | 43,629 | 42,964 | |
Equity (EDF share) | 45,154 | 44,469 | |
Equity (non-controlling interests) | 8,422 | 8,177 | |
Total equity | 53,576 | 52,646 | |
Provisions related to nuclear generation - back-end of the nuclear cycle, plant decommissioning and last cores | 50,616 | 49,204 | |
Other provisions for decommissioning | 1,494 | 2,033 | |
Provisions for employee benefits | 19,623 | 17,627 | |
Other provisions | 2,986 | 2,908 | |
Non-current provisions | 74,719 | 71,772 | |
Special French public electricity distribution concession liabilities | 47,218 | 46,924 | |
Non-current financial liabilities | 54,620 | 52,129 | |
Other non-current liabilities | 4,955 | 4,896 | |
Deferred tax liabilities | 2,337 | 1,987 | |
Non-current liabilities | 183,849 | 177,708 | |
Current provisions | 6,280 | 6,010 | |
Trade payables | 11,335 | 13,421 | |
Current financial liabilities | 16,430 | 17,167 | |
Current tax liabilities | 1,032 | 205 | |
Other current liabilities | 16,394 | 16,012 | |
Current liabilities | 51,471 | 52,815 | |
Liabilities related to assets held for sale | 829 | - | |
TOTAL EQUITY AND LIABILITIES | 289,725 | 283,169 |
(1) The financial statements at 30 June 2019 apply IFRS 16 from 1 January 2019 (using the modified retrospective approach).In accordance with the new standard’s transition provisions, the comparative figures have not been restated.
Consolidated cash flow statement
(in millions of euros) | H1 2019 (1) | H1 2018 (2) | |
Operating activities: | |||
Income before taxes | 3,168 | 2,013 | |
Income before taxes of discontinued operations | (374) | 36 | |
Income before taxes of consolidated companies | 3,542 | 1,977 | |
Impairment/(reversals) | 45 | 57 | |
Accumulated depreciation and amortisation, provisions and changes in fair value | 3,169 | 4,916 | |
Financial income and expenses | 312 | 277 | |
Dividends received from associates and joint ventures | 88 | 124 | |
Capital gains/losses | (6) | 50 | |
Change in working capital | 1,050 | 1,419 | |
Net cash flow from operations | 8,200 | 8,820 | |
Net financial expenses disbursed | (606) | (719) | |
Income taxes paid | 259 | 200 | |
Net cash flow from continuing operating activities | 7,853 | 8,301 | |
Net cash flow from operating activities relating to discontinued operations | 129 | 111 | |
Net cash flow from operating activities | 7,982 | 8,412 | |
Investing activities: | |||
Acquisitions of equity investments, net of cash acquired | (282) | (296) | |
Disposals of equity investments, net of cash transferred | 217 | 45 | |
Investments in intangible assets and property, plant and equipment | (7,537) | (7,621) | |
Net proceeds from sale of intangible assets and property, plant and equipment | 41 | 89 | |
Changes in financial assets | 1,799 | (479) | |
Net cash flow from continuing investing activities | (5,762) | (8,262) | |
Net cash flow from investing activities relating to discontinued operations | (69) | (58) | |
Net cash flow from investing activities | (5,831) | (8,320) | |
Financing activities: | |||
EDF capital increase | - | - | |
Transactions with non-controlling interests (3) | 420 | 1,285 | |
Dividends paid by parent company | (31) | (60) | |
Dividends paid to non-controlling interests | (80) | (113) | |
Purchases/sales of treasury shares | (16) | - | |
Cash flows with shareholders | 293 | 1,112 | |
Issuance of borrowings | 2,521 | 2,299 | |
Repayment of borrowings | (3,778) | (3,087) | |
Payments to bearers of perpetual subordinated bonds | (334) | (378) | |
Funding contributions received for assets operated under concessions | 68 | 56 | |
Investment subsidies | 141 | 301 | |
Other cash flows from financing activities | (1,382) | (809) | |
Net cash flow from continuing financing activities | (1,089) | 303 | |
Net cash flow from financing activities relating to discontinued operations | (61) | (67) | |
Net cash flow from financing activities | (1,150) | 236 | |
Net cash flow from continuing operations | 1,002 | 342 | |
Net cash flow from discontinued operations | (1) | (14) | |
Net increase/(decrease) in cash and cash equivalents | 1,001 | 328 | |
CASH AND CASH EQUIVALENTS - OPENING BALANCE | 3,290 | 3,692 | |
Net increase/(decrease) in cash and cash equivalents | 1,001 | 328 | |
Effect of currency fluctuations | (49) | (22) | |
Financial income on cash and cash equivalents | 8 | 7 | |
Effect of reclassifications | 95 | (48) | |
CASH AND CASH EQUIVALENTS - CLOSING BALANCE | 4,345 | 3,957 |
- The financial statements at 30 June 2019 apply IFRS 16 from 1 January 2019 (using the modified retrospective approach). In accordance with the new standard’s transition provisions, the comparative figures have not been restated.
- The published figures for 2018 have been restated due to the impact of presenting Edison’s E&P operations as discontinued operations.
- Contributions via capital increases, or capital reductions and acquisitions of additional interests or disposals of interests in controlled companies. In 2019, this item includes an amount of €418 million relating to CGN’s payment for the NNB Holding Ltd. and Sizewell C Holding Co capital increases (€361 million
at 30 June 2018). In 2018 it also included an amount of €797 million relating to the sale of 49% of EDF Renewables’ wind farms.
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 (1), 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.
- The customers were counted at the end of 2018 per delivery site; a customer can have two delivery points: one for electricity and another for gas.
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 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 2019, 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
This press release is certified. You can check that it’s genuine at medias.edf.com
Only print what you need. EDF SA 22-30, avenue de Wagram 75382 Paris cedex 08 Capital de 1 525 484 813 euros 552 081 317 R.C.S. Paris www.edf.fr | CONTACTS Presse : +33(0) 1 40 42 46 37 Analysts and investors : +33(0) 1 40 42 40 38 |
([1]) Hydropower output after deduction of pumped volumes represents 17.1TWh in the first half of 2019 (25.5TWh in the first half of 2018).
([2]) Linky is a project led by Enedis, an independent EDF subsidiary as defined in the French Energy Code.
- [3]) Cash flow after dividends. The financial statements for the six months ended 30 June 2019 have been prepared in accordance with IFRS 16. Comparative figures have not been restated and the impact on Group cash flow would have been +€302m.
([4]) Net financial debt increased by €4.5bn in connection with the implementation of IFRS 16 on 1 January 2019.
- [5]) Net financial debt is not defined by accounting standards and does not appear directly in the Group's consolidated balance sheet. It corresponds to borrowings and financial debts less cash and cash equivalents and liquid assets. Liquid assets are financial assets composed of funds or securities with an initial maturity of more than three months, easily convertible into cash, and managed for liquidity purposes.
- [6]) Data published for the 2018 financial year (excluding net financial debt) have been restated for the impact of the presentation of the E&P as a discontinued operation.
- [7]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €164 million as 30/06/2018.
([8]) Breakdown of sales across the segments, before inter-segment eliminations.
- [9]) After deduction of pumped-storage hydropower volumes,
- [10]) Excluding the energy savings certificate component of market-price offers.
- [11]) -0.5% at 1 August 2018 (including the end of tariff catch-up) and +7.7% excluding taxes at 1 June 2019.
- [12]) Sum of personnel expenses and other external expenses. Based on comparable scope, IFRS 16 and exchange rates and constant discount rates for pensions. Excluding changes in operating expenses of the service activities.
- [13]) Regulated activities include Enedis, ÉS and island activities.
([14]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €83 million as 30/06/2018.
([15]) Breakdown of sales across the segments, before inter-segment eliminations.
([16]) Indexed adjustment of -0.21% to the TURPE 5 distribution tariff from 1 August 2018 and +3.0% to the TURPE 5 transmission tariff from 1 August 2018.
([17]) For the years 2012-2017 following publication of the official decisions. A provision has been booked for 2018 and the first half of 2019.
([18]) Sum of personnel expenses and other external expenses. Based on comparable scope, IFRS 16 and exchange rates and constant discount rates for pensions. Excluding changes in operating expenses of the service activities.
([19]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €27 million as 30/06/2018.
([20]) Breakdown of sales across the segments, before inter-segment eliminations
([21]) For the renewable energy generation optimized within a larger portfolio of generation assets, in particular relating to the French hydro fleet after deduction of pumped volumes, sales and EBITDA are estimated, by convention, as the valuation of the output generated at spot market prices (or at purchase obligation tariff) without taking into account hedging effects, and include the valuation of the capacity, if applicable.
([22]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €17 million as 30/06/2018.
([23]) Breakdown of sales across the segments, before inter-segment eliminations.
- [24]) Group Energy Services include Dalkia; Citelum, CHAM and service activities of EDF Energy, Edison, EDF Luminus and EDF SA. They consist in particular of street lighting, heating networks, decentralised low-carbon generation based on local resources, energy consumption management and electric mobility.
- [25]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €22 million as 30/06/2018.
([26]) Breakdown of sales across the segments, before inter-segment eliminations.
([27]) Breakdown of EBITDA across the segments, before inter-segment eliminations.
([28]) Including a €21m charge related to the revaluation of inventories, carried out as part of the determination of the Framatome acquisition balance sheet
([29]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €8 million as 30/06/2018.
([30]) Breakdown of sales across the segments, before inter-segment eliminations
- [31]) The disposal of Edison's Exploration and Production (E&P) activity was classified as a discontinued operation within the meaning of IFRS 5 as of 1 January 2019. The data published for the 2018 financial year have been restated for the impact of the presentation of the E&P activity in the process of being sold.
- [32]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €9 million as 30/06/2018.
([33]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €5 million as 30/06/2018.
([34]) Breakdown of sales across the segments, before inter-segment eliminations
([35]) Lunimnus and EDF Belgium
([36]) The 30/06/2019 financial statements are prepared applying the IFRS 16 standard. The comparative data was not restated and the EBITDA impact would have been of €6 million as 30/06/2018.
([37]) A full list of press releases is available on EDF’s website www.edf.fr
([38]) La liste exhaustive des communiqués de presse d’EDF Renouvelables est disponible sur le site internet : www.edf-renouvelables.com
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