|
|
|
|
PRESS RELEASE
14 February 2017 |
|
|
|
2016 annual
results
Revised 2016 targets
reached
Good performance of operational
activities
Performance plan consistent with announced
trajectory
2017 targets confirmed
-
EBITDA: €16.4 billion,
-4.8% organic variation[1]
-
Net income excluding
non-recurring items: €4.1 billion, compared to €4.8 billion in
2015, -15.3%
-
Net income - Group share:
€2.9 billion, 2.4x compared to 2015
-
Nuclear output:
- France: 384TWh, -7.9% due
primarily to additional controls resulting in outages or the
extension of certain planned outages
- United Kingdom: 65.1TWh, a record
level since 2003, +4.5TWh compared to 2015
Performance
plan
-
Continuation of Opex
reductions[2]: -€0.3 billion compared to 2015
-
Rapid progress of the disposals
plan: €6.7 billion in disposals signed or realised, 67% of the
objective
Debt
-
Stabilised net financial
debt: €37.4 billion
-
Net financial debt/EBITDA:
2.3x, in line with the target of below 2.5x
-
Proposed dividend for 2016:
€2.1 billion, with an option of payment in new shares, with a
payout ratio of 60%
2017
targets
-
Nuclear output: 390 -
400TWh
-
EBITDA[3]: €13.7
to 14.3 billion
-
Net financial
debt/EBITDA[4]: at or
below 2.5x
-
Payout ratio of Net income
excluding non-recurring items[5]: 55% to
65%
2018
targets
-
Continuation of the Opex
plan[6] with a
savings of €0.7 billion compared to 2015
-
EBITDA[7]: at or above €15.2 billion
-
Net investment excluding
Linky[8], new
developments and disposals: ~€10.5bn
-
Cash flow7,[9]: at or above 0
-
Net financial
debt/EBITDA7,9: at or below 2.5x
-
Payout ratio of Net income
excluding non-recurring items5:
50%
EDF's Board of Directors meeting
on 13 February 2017, under the chairmanship of Jean-Bernard Lévy,
approved the consolidated financial statements for the year
ended.
Jean-Bernard Lévy, EDF's Chairman
and CEO, stated:
"The 2016 financial results show that EDF's
fundamentals are robust. The Group's transformation is well under
way, thanks to the commitment and remarkable effort of its
employees. The CAP 2030 strategy is advancing at a steady pace and
the performance plan is progressing according to the announced
trajectory, a sure sign that the company is moving forward. We will
continue this momentum in 2017 by launching new offers and
innovative services for our customers, by developing low carbon
projects and by exporting our expertise into targeted markets
outside of Europe."
Change in EDF
group's annual results
In millions of euros |
2015 |
2016 |
Change vs. 2015
(%) |
Organic growth
(%) |
Sales |
75,006 |
71,203 |
-5.1 |
-3.2 |
EBITDA |
17,601 |
16,414 |
-6.7 |
-4.8 |
EBIT |
4,280 |
7,514 |
+75.6 |
+76.6 |
Net income - Group share |
1,187 |
2,851 |
+140.2 |
|
Earnings per
share[10] |
0.32 |
1.15 |
|
|
Net income excluding non-recurring items |
4,822 |
4,085 |
-15.3 |
|
Change in EDF
group's EBITDA
In millions of euros |
2015 |
2016 |
Organic growth (%) |
|
|
|
|
France - Generation and supply activities |
6,936 |
6,156 |
-11.2 |
France - Regulated activities |
4,719 |
5,102 |
+8.1 |
United Kingdom |
2,242 |
1,713 |
-12.3 |
Italy |
1,345 |
641 |
-50.6 |
Other International |
609 |
711 |
+21.2 |
Other activities |
1,750 |
2,091 |
+22.0 |
Total
Group |
17,601 |
16,414 |
-4.8 |
The performance plan, together
with the sound management of the industrial base and commercial
performance, made it possible, in an unfavourable market
environment, to partially offset the increased competition and the
reduced availability of the nuclear power plants in France due to
additional tests. The Group's EBITDA amounted to €16.4 billion,
down by 6.7% compared to 2015. Excluding the foreign exchange
effects (-€0.3 billion), resulting mainly from the depreciation of
the pound sterling against the euro, and excluding consolidation
scope effects, EBITDA was down by 4.8% in organic terms. This
change also reflects the positive impact of the 2014 tariff
adjustment and the strong performance of regulated activities.
As part of its performance plan,
which provides for a reduction in operational
expenditures[11] of at
least €1 billion in 2019 compared to 2015, EDF group has reduced
its operational expenditures by 1.3%[12], or about
€0.3 billion compared to 2015. In France, EBITDA of Generation and
supply activities amounted to €6.2 billion, an organic decline of
11.2%, due mainly to a drop in nuclear generation compared to 2015
and a negative evolution in market conditions.
The France - Regulated activities
segment recorded an EBITDA of €5.1 billion, an organic increase of
8.1%, mainly due to the combined effects of a positive weather
impact and lower costs of covering network losses.
In the United Kingdom, EBITDA was
down by 12.3% in organic terms compared to 2015. The excellent
performance of nuclear generation and the continuation of the cost
savings plan partially offset the highly negative impact of falling
prices and increased competition.
In Italy, EBITDA recorded a 50.6%
drop in organic terms, mainly due to unfavourable market conditions
in 2016 and the positive outcome of the arbitration on the Libyan
gas contract in 2015, which had no equivalent in 2016.
In the Other activities segment,
EBITDA was up by 22.0% in organic terms, in particular due to the
growth of the activities of EDF Trading, whose EBITDA was up 56.8%
in organic terms, and of EDF Énergies Nouvelles, whose EBITDA
benefitted from the net capacities installed in 2015 and the
success of the development model through asset rotation.
EBITDA for Other International
increased by 21.2% in organic terms, supported by all
countries.
Operating
performance:
Nuclear generation in France affected by
additional controls
Excellent nuclear performance in the United
Kingdom
In France, nuclear output amounted
to 384TWh, a decrease of 32.8TWh compared to 2015. 2016 was marked
by the implementation of additional controls[13], in
particular on the steam generators, leading to the extension or
scheduling of additional planned outages for several reactors. The
analyses and tests carried out on the steam generators potentially
affected by the carbon segregation issue led the French Nuclear
Safety Authority (ASN) to grant approval to restart 17 out of the
18 reactors concerned, confirming the ability of these reactors to
operate safely. The Civaux 1 reactor is currently undergoing
controls.
At the same time, the operational
performance of the nuclear fleet remains solid, with the lowest
volume of unplanned outages ever reached, increasingly positive
safety results and a historically low number of automatic reactor
stoppages.
Nuclear generation was
supplemented by the output from the thermal power plants, which
amounted to 11.9TWh, up 5.1TWh due to higher demand, in particular
for gas-fired plants.
Finally, hydropower output
amounted to 42.4TWh in 2016, up 3.5TWh due to more favourable hydro
conditions than in 2015.
In total, the output of the France
- Generation and supply activities segment amounted to 438.3TWh,
down by 24.2TWh compared to 2015.
After the end of the Yellow and
Green tariffs, and in an increasingly competitive environment, more
than 75% of customers in this segment chose EDF in 2016.
Commercial development has led to
an increase of 10.5% in the number of gas customer accounts
compared to 2015.
In the United Kingdom, nuclear
output was at its highest level ever, reaching 65.1TWh, up by
4.5TWh compared to 2015, thanks to excellent operational
performance. Nuclear generation in 2016 benefitted from the very
high level of fleet availability and a historically-low rate of
unplanned outages.
EDF Énergies Nouvelles output
reached 11.3TWh, an increase of 9%. This growth was driven by the
commissioning of 1.2GW in gross capacity in wind power and in North
America. The portfolio of projects under construction amounts to
1.8GW of nuclear provisions at 31/12/2016, of which approximately
50% is located in new geographical areas (India, Brazil, Chile,
China).
In energy services, heating
network activities have developed significantly, and the share of
renewable energies in the energy mix has risen sharply.
Net income
The Group's share of net income
amounted to €2.9 billion in 2016, an increase of €1.7 billion
compared to 2015, due to lower impairment losses in 2016 compared
to 2015 and to the positive effect of the extension to 50 years of
the accounting depreciation period of the PWR 900MW
series[14] in
France.
The financial result corresponds
to an expense of €3.3 billion in 2016, up €0.7 billion compared to
2015, due mainly to an increase in the unwinding costs of nuclear
provisions attributable in particular to the significant drop in
the discount rate of nuclear provisions from 4.5% to 4.2%.
The Group's net income excluding
non-recurring items stood at €4.1 billion for 2016, down by 15.3%
from 2015.
Performance plan
consistent with announced trajectory
EDF confirms the continuation of
its efforts to reduce operational expenditures[15] with
a decrease of €0.3 billion in 2016 compared to 2015. This
trajectory supports the objective of the performance plan to reduce
operational expenditures by €0.7 billion in 2018 compared to 2015,
and by €1 billion in 2019 compared to 2015. All segments contribute
to this financial result, with, in particular, a decrease of 1.0%
of OPEX in the France - Generation and supply activities segment,
thanks to an adjustment of the sales and administrative costs to
the competitive environment and to an optimisation of the thermal
fleet costs. The France - Regulated activities segment is also
continuing its efforts to optimise costs. The UK recorded a
reduction of 3.6%, and Italy 4.7%.
The optimisation plans have had a
positive impact of €0.7 billion on the working-capital requirement
in 2016.
The disposal plan has led to
around €6.7 billion in disposals that were signed or closed in
2016, as part of the €10 billion disposal plan over the 2015-2020
period.
Net investments amounted to €11.7
billion in 2016 compared to €12.7 billion in 2015, a decrease of
€1.0 billion
(-8.0%). Net investments excluding Linky, new developments and
assets disposals went down by €0.6 billion to €11.8 billion in 2016
compared to €12.4 billion in 2015. These developments, in line with
the trajectory to achieve net investments excluding Linky and asset
disposals of approximately €10.5 billion in 2018, are primarily
attributable to the decrease in international net investments
(-€0.7 billion, -28.5%), due to rationalisation of investments
mainly in the United Kingdom, Italy, Poland and China.
Proposed dividend
for 2016: distribution of €2,102 million, corresponding to a payout
ratio of 60%, with option of payment in new shares
Terms of settlement of the dividend
balance for 2016
On 13 February 2017, EDF's Board
of Directors scheduled the Combined General Meeting of Shareholders
for 18 May 2017 and decided to propose to the Shareholders'
Meeting, in accordance with Article L. 232-18 of the French
Commercial Code and Article 25 of the Company's articles of
association, to offer each shareholder to opt for a payment in new
Company shares of the dividend balance to be distributed for the
fiscal year closing 31 December 2016. If the option is exercised,
the new shares will be issued at a price equal to 90% of the
average opening price of EDF's shares on the Euronext Paris market
during the twenty trading days preceding the day of the
Shareholders' Meeting, less the amount of the remaining balance of
the dividend to be distributed for 2016, rounded to the nearest
euro cent.
The terms of settlement of the
dividend balance for 2016, which will be submitted to the
shareholders for approval were set as follows:
-
ex-dividend date (ordinary and loyalty) on 6
June 2017
-
exercise period for payment in new shares from 6
June to 20 June 2017 inclusive
-
payment of dividend balance and settlement of
shares on 30 June 2017
The dividend balance to be
distributed for 2016 amounts to €1,096 million.
The dividend per share, the
balance per share and the balance per share for loyalty shares,
taking into account the interim dividend of €0.50 per share paid on
31 October 2016, will be announced by the company at the launch of
the capital increase, which should occur, subject to market
conditions, before the end of the first quarter 2017[16].
Stable net
financial debt
|
31/12/2015 |
31/12/2016 |
Net financial debt (in billions of euros) |
37.4 |
37.4 |
Net financial debt/EBITDA |
2.1x |
2.3x |
Net financial debt amounted to
€37.4 billion on 31 December 2016, stable compared to 31 December
2015. The ratio of net financial debt/EBITDA was 2.3x, in line with
the objective of being less than 2.5x.
Operating cash flow amounted to
€13.1 billion, down by 3.3%. This change resulted primarily from a
drop in EBITDA by €1.2 billion, which was partially offset by a
decrease in income taxes paid and a decrease in net financial
expenses disbursed.
In addition, the change in the
working-capital requirement of -€1.9 billion in 2016 compared to
+0.1 billion in 2015 is largely cyclical in nature. This change is
primarily attributable in France to the effect of the adjustment of
the 2014 regulated sales tariffs (-€0.9 billion) and a more severe
climate effect in 2016, triggering an increase in receivables
(-€0.9 billion).
Thanks to management efforts and
despite the difficult environment, Group cash flow totalled -€1.6
billion, against -€2.1 billion in 2015.
The foreign exchange effect had a
positive impact of €1.1 billion on the Group's net financial debt
on 31 December 2016, mainly due to the significant depreciation of
the pound sterling against the euro.
EDF also continued its active
financing policy with a series of senior bond issues in October
2016 in US Dollar, Euro and Swiss Franc, raising a total of €3
billion through a "Formosa Bond" in two tranches of $2,655 billion
and a "Samurai Bond" in January 2017 for approximately €1.1
billion.
Among these issues, three green
bonds were issued: one tranche of €1.75 billion (10-year maturity)
and two samurai tranches (12 and 15-year maturities) for a total of
¥26 billion, or the equivalent to €0.2 billion. These issues will
allow the Group to continue its investments in the development of
renewable energies carried out by EDF Énergies Nouvelles, as well
as the modernisation and development of existing hydropower plants
in mainland France.
On 31 December 2016 the average
maturity of the Group's debt stood at 13.4 years for an average
coupon of 2.7%, compared to 2.9% on 31 December 2015.
Due to the decrease in the real
discount rate on 31 December, the allocations to provisions must be
offset by allocations to dedicated assets in accordance with the
decree of 24 March 2015 in the amount of €1,095 million. EDF will
proceed within 30 days of the closing of the financial statements
to the allocation of that amount to dedicated assets, in compliance
with the letter of 10 February 2017 sent by the Ministers of
Economy and Finance, and Environment, Energy and Sea.
In the same letter dated 10
February 2017, the minister for the Economy and Finance and the
minister for the Environment, Energy and the Sea announced their
decision to change the calculation formula for the regulatory limit
on discount rates with effect from 2017. This decision will be set
out in an amendment to the ministerial order of 21 March 2007,
itself modified by the order of 24 March 2015. This amendment comes
after joint work by the nuclear operators and public authorities to
establish a formula for a maximum discount rate, taking into
account the long time horizons of nuclear liabilities and
prudential objectives for secure financing of long-term nuclear
expenses.
Under the new formula, the
regulatory limit will gradually migrate from its level at 31
December 2016 (4.3%) until by 2026 it is equal to the average
constant 30-year rate (TEC 30 years) over the four most recent
years, plus 100 base points.
Considering past and anticipated
changes in rates, the new formula, which will progressively
incorporate the move from the regulatory 4.3% to a four-year
average including a 100 base point spread, should mean that future
years see smoother changes in the regulatory limit than under the
previous formula.
Outlook
2017
targets
2017 will be marked by the effects
of lower market prices in France and in the UK compared to 2016 and
ARENH volumes subscribed at the end of 2016. Moreover, nuclear
generation in France will be influenced by the outages of the Bugey
5, Fessenheim 2, Gravelines 5 and Paluel 2 reactors and by a volume
of planned outages linked to the continuation of the "Grand
Carénage" industrial programme.
In this context, the Group has set
the following targets for 2017:
-
Nuclear output: 390 -
400TWh
-
EBITDA[17]: €13.7
to 14.3 billion
-
Net financial
debt/EBITDA[18]: at or
below 2.5x
-
Payout ratio of Net income
excluding non-recurring items[19]: 55%
to 65%
2018
targets
In 2018, EDF will benefit from
additional savings arising from the performance plan, the gradual
normalisation of the level of nuclear generation in France and the
development of the Group's service activities. Changing market
conditions in France and the UK should have a positive effect.
The Group has set the following
targets for 2018:
-
Opex[20]: -€0.7 billion compared to 2015
-
EBITDA[21]: at or above €15.2 billion
-
Net investment excluding Linky,
new developments and disposals: around €10.5 billion
-
Cash flow21,[22]: at or above 0
-
Net financial debt/EBITDA
21,22: at or below 2.5x
-
Payout ratio of Net income
excluding non-recurring items19: 50%
Beyond
2018
-
Reduction in operational
expenditures20: at or above €1 billion in 2019 vs. 2015
-
Asset disposals in
2015-2020: At least €10 billion
-
Payout ratio of Net income
excluding non-recurring items19: 45% to 50%
Main Group results
by segment
France -
Generation and Supply Activities:
positive effects of the Group performance plan and
the tariff adjustment,
lower nuclear generation and difficult market
conditions
In millions of euros |
2015 |
2016 |
Organic variation (%) |
Sales[23] |
37,327 |
35,191 |
-5.7 |
Opex |
9,837 |
9,591 |
-1.0[24] |
EBITDA |
6,936 |
6,156 |
-11.2 |
Sales in the Generation and supply
activities segment amounted to €35.2 billion, down 5.7 % in
organic terms.
EBITDA was down 11.2% organically
to €6.2 billion in an unfavourable market environment.
It was affected by the decline in
nuclear output by 32.8TWh compared to 2015, mainly attributable to
outages and the extension of outages related to additional tests,
for an estimated €1.3 billion.
Net sales on the markets had a
negative impact estimated at almost €0.5 billion, partly due to
purchases made necessary in the second half of the year by the
unavailability of the nuclear fleet.
The impact of the changing market
conditions with the end of the Yellow and Green regulated sales
tariffs, declining market prices and the highly competitive
environment is estimated at -€1.2 billion.
EBITDA benefited from the positive
weather effect, a leap year and tariff increases for a total of
about €0.3 billion. This change reflects the adjustment of the
regulated tariffs for the period between 1 August 2014 and 31 July
2015, following the French State Council's decision on 15 June
2016, in the amount of €0.9 billion.
As part of the EDF group's
performance plan, Opex24 declined
1.0% thanks to operational performance gains in all entities,
including an adaptation of the commercial and administrative costs
to a competitive environment and the optimising of thermal fleet
costs.
France - Regulated
activities: favourable weather and market conditions
In millions of euros |
2015 |
2016 |
Organic variation (%) |
Sales[25] |
15,418 |
15,728 |
+2.0 |
Opex |
4,950 |
4,951 |
-0.4[26] |
EBITDA |
4,719 |
5,102 |
+8.1 |
Sales from regulated activities
amounted to €15.7 billion, up 2.0% in organic terms. EBITDA rose by
8.1% organically, attributable to a positive weather effect
(+5.6TWh), a leap year (+1.2TWh) and lower costs of covering
network losses due to lower market prices. In addition, cost
optimisation actions are continuing.
United Kingdom:
excellent nuclear performance and control of Opex,
which only partially offset the difficult market
conditions
In millions of euros |
2015 |
2016 |
Organic variation (%) |
Sales 25 |
11,622 |
9,267 |
-9.0 |
Opex |
2,492 |
2,024 |
-3.6 26 |
EBITDA |
2,242 |
1,713 |
-12.3 |
In the United Kingdom, sales
amounted to €9.3 billion, an organic decline of 9.0% compared to
2015. EBITDA amounted to €1.7 billion, an organic decline of 12.3%,
excluding the negative foreign exchange effect of €0.3 billion
attributable to the depreciation of the pound sterling in
particular following the Brexit referendum.
This change is the result of an
increase in nuclear generation, reaching a record level of 65.1TWh
(+4.5TWh), thanks to excellent operating performance, which
partially offset the very negative impact of lower realised nuclear
prices.
Despite the highly competitive
environment, the average number of residential customer accounts
remained stable compared to 2015, at 5.2 million.
Furthermore, EBITDA was supported
by the organic 3.6% drop in Opex26, thanks to
EDF Energy's cost control plan.
Italy: Opex
control mitigates difficult market conditions
and the 2015 positive impact from gas contract
arbitration
In millions of euros |
2015 |
2016 |
Organic variation (%) |
Sales[27] |
11,694 |
11,125 |
-4.5 |
Opex |
939 |
896 |
-4.7[28] |
EBITDA |
1,345 |
641 |
-50.6 |
In Italy, sales amounted to €11.1
billion, down 4.5% in organic terms compared to 2015.
EBITDA decreased in organic terms
by 50.6% mainly due to the positive effect of the Libyan gas
contract arbitration in 2015, without equivalent in 2016.
In Electricity activities, EBITDA
was hurt globally by the adverse trend in average sales prices.
Exceptionally strong hydrological conditions in 2015 resulted in a
negative change in 2016.
EBITDA for Hydrocarbons activities
was down due to the positive impact in 2015 of the arbitration of
the Libyan gas contract, and the continued drop in Brent prices,
which negatively affected the exploration & production
activities.
This drop was partially offset by
the positive effect of higher gas volumes sold, as well as by the
restoring of gas sales margins in 2016. This was the result of the
renegotiations of the Libyan gas contract (end of 2015), and the
Qatari gas contract with Rasgas (June 2016), which incorporates a
revision of the price formula.
Moreover, the continuation of the
cost reduction plan led to a 4.7% cut in Opex28.
Other activities:
very strong operating performance
In millions of euros |
2015 |
2016 |
Organic variation (%) |
Sales[29] |
7,288 |
7,734 |
+4.5 |
EBITDA |
1,750 |
2,091 |
+22.0 |
Sales in Other activities amounted
to €7.7 billion, up 4.5% in organic terms over 2015. EBITDA rose by
22% organically.
EDF Énergies Nouvelles contributed
€0.9 billion to the Group's EBITDA, an organic increase of 6.1%
compared to 2015. This growth is attributable to the continued
growth of generation and to the success of the asset rotation
development model in Europe (wind farm disposals in Greece and
Portugal) and in the United States.
Dalkia's EBITDA amounted to €0.3
billion, corresponding to organic growth of €18 million. This trend
reflects both the positive impact of commercial development and the
implementation of performance plans, despite the negative impact of
lower gas prices.
EDF Trading's contribution to the
Group's EBITDA amounted to €0.7 billion in 2016, an organic
increase of €0.3 billion (+56.8%) compared to 2015. This change is
attributable to high volatility in European energy markets,
particularly during the second half of the year, and to the good
performance of the trading activities in LNG.
Other
International: strong performance in all regions
In millions of euros |
2015 |
2016 |
Organic variation (%) |
Sales[30] |
5,827 |
5,286 |
-6.8 |
EBITDA |
609 |
711 |
+21.2 |
Sales in the Other International
segment amounted to €5.3 billion, down 6.8% in organic terms
compared to last year. EBITDA was up 21.2% in organic terms.
In Belgium, EBITDA rose
organically by 46.4%, thanks to the growth of wind power generation
(+19% of installed capacity to 301MW), the strong performance of
nuclear generation following the restart of the Doel 3 and Tihange
2 reactors, and good thermal performance due to improved clean
spark spreads and the continued high level of activity in system
services.
In Poland[31], EBITDA
amounted to €0.3 billion, up 19.1% organically compared to 2015
thanks to the good performance of EDF Polska. This performance
reflects the increase in electricity and heat generation due to
improved asset availability, for which the modernisation works are
nearing completion, a positive weather effect and connections of
new customers. Poland's EBITDA also benefitted from higher heat
tariffs and the positive effect of fuel prices.
Brazil participated in the
segment's EBITDA growth with an organic increase of +€87 million,
attributable to the positive effect of the annual tariff review of
EDF Norte Fluminense's power purchase agreement (PPA), the positive
price effect on gas purchases, system services and the positive
volume effect on maintenance and export.
In Asia, EBITDA was down following the end of the Figlec concession
in China since September 2015.
Main
events
since the 2016 third quarter press release
Board of
Directors' meeting held on 13 February 2017
During its meeting held on 13
February 2017, the Board of Directors of EDF decided to carry out a
capital increase with preferential subscription rights to existing
shareholders for a total amount, including issue premium, of
approximately 4 billion euros, as announced on 22 April
2016.
EDF intends to launch this capital increase before the end of the
first quarter of 2017, subject to market conditions and after
having received the visa from the French Autorité des marchés
financiers (the "AMF") on the prospectus. This transaction will be
executed, after a new deliberation of the Board of Directors, in
accordance with the delegation of authority which has been granted
to it by the second resolution adopted at the extraordinary general
meeting of the shareholders of the company held on 26 July
2016.
The French State, EDF's largest shareholder, has committed to
subscribe for new shares in an amount of 3 billion euros out of the
total amount of approximately 4 billion euros.
The nuclear
industry and the Group's industrial development
EDF announced that, following the
memorandum of understanding signed on 28 July 2016, AREVA and EDF
have signed on 15 November the contract setting the terms of the
sale of an interest conferring exclusive control by EDF of an
entity ("NEW NP"), a 100% subsidiary of AREVA NP.
On 23 January 2017, EDF announced
that RasGas Company Limited delivered its first liquefied natural
gas (LNG) cargo to the Dunkerque LNG Regasification Terminal,
France, under the Sales and Purchase Agreement signed between Ras
Laffan Liquefied Natural Gas Company(3) and EDF in June, 2016. This
followed the successful commencement of commercial operations of
the Dunkirk LNG terminal on 1 January 2017.
Compensation
protocol for the closure of the Fessenheim nuclear plant
At a meeting held on 24 January
2017, EDF's Board of Directors examined the terms of the protocol
negotiated between the company and the French State in order to set
the terms governing compensation for the damage suffered by the
company as the result of the closure of the Fessenheim nuclear
power plant, in application of the law on energy transition of 17
August 2015. This law sets a ceiling of 63.2GW for installed
nuclear electricity generation capacity in France. This means that
the commissioning of the Flamanville 3 EPR is conditional upon the
shutdown, on the same date, of an equivalent generation
capacity. The Board of Directors was informed of the
unanimously negative opinion submitted by the EDF Works Council on
10 January 2017.
The Board approved the terms of the protocol and authorised the CEO
to sign it on behalf of EDF in due course. The protocol provides
for the following compensation for EDF:
a fixed initial portion covering the anticipated costs associated
with the closure (costs of staff retraining, decommissioning, the
INB[32] tax and
"post-operation" costs). This fixed portion is currently estimated
at approximately €490 million, 20% of which would be paid in 2019
and 80% in 2021; a further, variable portion giving rise, where
applicable, to subsequent payments reflecting EDF's shortfall up to
2041. In addition, the closure of the Fessenheim plant requires a
decree revoking the licence to operate the power plant, to be
issued at the request of the company and which, in application of
the law, will take effect at the same time as the commissioning of
the Flamanville 3 EPR, scheduled for late 2018.
In the corporate interests of EDF, and in order to comply with the
statutory ceiling of 63.2 GW, the Board has made the submission of
this request for revocation subject to the entry into effect of the
permissions necessary to proceed with the construction of
Flamanville 3 and the continued operation of Paluel 2, which is
currently shut down, and also confirmation from the European
Commission that the protocol complies with State aid
regulations.
The Board has decided that the submission of this application for
revocation will give rise to further deliberation on its part to
establish that these conditions are met.
The duration of the operational outage of Paluel 2 was extended for
two years by an order published on 4 February 2017 in the Journal
Officiel.
Significant
progress in the disposal plan
EDF, Caisse des Dépôts and CNP
Assurances sign a binding agreement for the acquisition by Caisse
des Dépôts and CNP Assurances of a 49.9% stake in Réseau de
Transport d'Electricité (RTE[33]). The
final agreed value was set at €8.2 billion for 100% of RTE equity.
EDF will potentially benefit from a value complement of up to €100
million.
EDF Trading will hold 33% of JERA
Trading shares. The sale should be completed at the end of the
first half of 2017
EDF and ENKSZ ("Elso Nemzeti
Közmuszolgáltató Zrt.") have completed the transaction for the sale
of the whole of EDF stake in EDF DÉMÁSZ Zrt, its Hungarian
subsidiary. This announcement follows the receipt of both the
approval by the Hungarian regulator of the energy sector and the
authorization by the French Ministry of Economy. The transaction
values the 100% stake of EDF in EDF DÉMÁSZ Zrt at approximately 400
million euros, and is a new step forward in the execution of EDF's
disposal plan for the 2015-2020 period.
Tikehau IM acquired from the EDF
group property investment company SOFILO a portfolio of c. 130
office real estate and business assets. The portfolio owns assets
located in Ile-de-France and others regions, covering floor space
of approximately 300,000 square meters.
A memorandum of understanding was
signed in January 2017 between EDF and a consortium of Polish
utilities made up of PGE, Enea, Energa and PGNiG The purpose of
this memorandum is to frame discussions about the sale of EDF
Polska.
The development
of renewable energies
On 11 January 2017, EDF Energies
Nouvelles announced the commissioning of four wind farms in the
United States with installed capacity totalling over 708
MW.
Moreover, the Group has also accelerated its solar energy expansion
drive in 2016 with notably a new 150 MWac project in the United
States.
This contributes to the EDF Group's CAP 2030 strategy, which aims
at doubling its renewable energy capacity by 2030.
EDF announced the inauguration of
the Boléro solar plant, the most powerful of the Group's
commissioned solar facilities, the start of construction of the
Santiago Solar plant (capacity of 115 MWc), and the start on the
new Cabo Leones 1 wind farm, one of the most powerful in the
country.
Off Grid Electric, a leading
distributed solar company in Africa, and EDF, a global leader in
low-carbon energies, today announced a partnership to supply
competitive off-grid solar energy in Africa.
EDF welcomed the launch of a 100%
renewable smart-grid project, combining two complementary energies:
hydropower and biomass. In parallel, EDF is developing, at the
request of the West Guyana Community of Communes, an innovative
program for the electrification of the isolated towns in Guyana's
interior.
Financial
structure
EDF (AA JCR / A- S&P / A3
Moody's / A- Fitch) successfully raised JPY137 billion, i.e. around
EUR1.1 billion, through a senior bond issuance in 4 tranches on the
Japanese market ("Samurai bonds"). The 20-year bond represents the
longest maturity ever issued on the Samurai market. With the
issuance of two green tranches totaling JPY26 billion dedicated to
the financing of its renewable investments, EDF opens the Samurai
Green market and continues to participate actively in the
development of Green Bonds as financing instruments of the energy
transition.
EDF announced the disposal on 22
December of a share (26.40%) of the receivable of the Public
Service Costs for Energy (CSPE) it held with the French state under
the deficit of the CSPE compensation until 31 December 2015, as
announced on 8 November 8 2016. The receivable has been assigned to
an investors pool composed of a banking institution and a dedicated
FCT (Fond Commun de Titrisation - French securitized mutual fund).
Proceeds from this disposal (without recourse) amount to €1.5
billion.
APPENDICES
Consolidated income statements
|
(in millions of Euros) |
|
2016 |
2015 |
|
Sales |
|
71,203 |
75,006 |
Fuel and energy purchases |
|
(36,050) |
(38,775) |
Other external expenses |
|
(8,902) |
(9,526) |
Personnel expenses |
|
(12,543) |
(12,529) |
Taxes other than income taxes |
|
(3,656) |
(3,641) |
Other operating income and expenses |
|
6,362 |
7,066 |
Operating profit before
depreciation and amortisation |
|
16,414 |
17,601 |
Net changes in fair value on Energy and
Commodity derivatives, excluding trading activities |
|
(262) |
175 |
Net depreciation and amortisation |
|
(7,966) |
(9,009) |
Net increases in provisions for renewal of
property, plant and equipment operated under concessions |
|
(41) |
(102) |
(Impairment)/reversals |
|
(639) |
(3,500) |
Other income and expenses |
|
8 |
(885) |
Operating profit |
|
7,514 |
4,280 |
Cost of gross financial indebtedness |
|
(1,827) |
(1,994) |
Discount effect |
|
(3,417) |
(2,812) |
Other financial income and expenses |
|
1,911 |
2,218 |
Financial result |
|
(3,333) |
(2,588) |
Income before taxes of
consolidated companies |
|
4,181 |
1,692 |
Income taxes |
|
(1,388) |
(483) |
Share in net income of associates and joint
ventures |
|
218 |
192 |
GROUP NET INCOME |
|
3,011 |
1,401 |
EDF net income |
|
2,851 |
1,187 |
Net income attributable to
non-controlling interests |
|
160 |
214 |
|
|
|
|
Earnings per share (EDF
share) in Euros: |
|
|
|
Earnings per share |
|
1.15 |
0.32 |
Diluted
earnings per share |
|
1.15 |
0.32 |
Consolidated balance sheets
ASSETS
(in millions of Euros) |
|
31/12/2016 |
31/12/2015 |
Goodwill |
|
8,923 |
10,236 |
Other
intangible assets |
|
7,450 |
8,889 |
Property,
plant and equipment operated under French public electricity
distribution concessions |
|
53,064 |
51,600 |
Property,
plant and equipment operated under concessions for other
activities |
|
7,616 |
7,645 |
Property,
plant and equipment used in generation and other tangible assets
owned by the Group |
|
70,573 |
71,069 |
Investments in associates and joint ventures |
|
8,645 |
11,525 |
Non-current financial assets |
|
35,129 |
35,238 |
Other
non-current receivables |
|
2,268 |
1,830 |
Deferred
tax assets |
|
1,641 |
2,713 |
Non-current assets |
|
195,309 |
200,745 |
Inventories |
|
14,101 |
14,714 |
Trade
receivables |
|
23,296 |
22,259 |
Current
financial assets |
|
29,986 |
27,019 |
Current
tax assets |
|
183 |
1,215 |
Other
current receivables |
|
10,652 |
8,807 |
Cash and
cash equivalents |
|
2,893 |
4,182 |
Current assets |
|
81,111 |
78,196 |
Assets classified as held for sale |
|
5,220 |
- |
TOTAL ASSETS |
|
281,640 |
278,941 |
Consolidated balance sheets
Liabilities
(in millions of Euros) |
|
31/12/2016 |
31/12/2015 |
Capital |
|
1,055 |
960 |
EDF net
income and consolidated reserves |
|
33,383 |
33,789 |
Equity (EDF share) |
|
34,438 |
34,749 |
Equity
(non-controlling interests) |
|
6,924 |
5,491 |
Total equity |
|
41,362 |
40,240 |
Provisions related to nuclear generation - back-end of the
nuclear cycle, plant decommissioning and last cores |
|
44,843 |
44,825 |
Provisions for decommissioning of non-nuclear facilities |
|
1,506 |
1,447 |
Provisions for employee benefits |
|
21,234 |
21,511 |
Other
provisions |
|
2,155 |
2,190 |
Non-current provisions |
|
69,738 |
69,973 |
Special
French public electricity distribution concession liabilities |
|
45,692 |
45,082 |
Non-current financial liabilities |
|
54,276 |
54,159 |
Other
non-current liabilities |
|
4,810 |
5,126 |
Deferred
tax liabilities |
|
2,272 |
4,122 |
Non-current liabilities |
|
176,788 |
178,462 |
Current
provisions |
|
5,228 |
5,354 |
Trade
payables |
|
13,031 |
13,284 |
Current
financial liabilities |
|
18,289 |
17,473 |
Current
tax liabilities |
|
419 |
506 |
Other
current liabilities |
|
24,414 |
23,622 |
Current liabilities |
|
61,381 |
60,239 |
Liabilities related to assets classified as held for
sale |
|
2,109 |
- |
TOTAL EQUITY AND LIABILITIES |
|
281,640 |
278,941 |
Consolidated cash flow stements
(in millions of Euros) |
|
2016 |
2015 |
Operating activities: |
|
|
|
Income before taxes of consolidated companies |
|
4,181 |
1,692 |
Impairment/(reversals) |
|
639 |
3,500 |
Accumulated depreciation and amortisation, provisions and changes
in fair value |
|
9,814 |
11,392 |
Financial
income and expenses |
|
948 |
951 |
Dividends
received from associates and joint ventures |
|
330 |
322 |
Capital
gains/losses |
|
(877) |
(1,593) |
Change in
working capital |
|
(1,935) |
132 |
Net cash flow from operations |
|
13,100 |
16,396 |
Net
financial expenses disbursed |
|
(1,137) |
(1,252) |
Income
taxes paid |
|
(838) |
(1,508) |
European
Commission decision of 22 July 2015 |
|
- |
(906) |
Net cash flow from operating activities |
|
11,125 |
12,730 |
Investing activities: |
|
|
|
Acquisitions of equity investments, net of cash acquired |
|
(127) |
(162) |
Disposals
of equity investments, net of cash transferred |
|
372 |
748 |
Investments in intangible assets and property, plant and
equipment |
|
(14,397) |
(14,789) |
Net
proceeds from sale of intangible assets and property, plant and
equipment |
|
508 |
964 |
Changes
in financial assets |
|
(2,913) |
(5,600) |
Net cash flow used in investing activities |
|
(16,557) |
(18,839) |
Financing activities: |
|
|
|
Transactions with non-controlling interests |
|
1,368 |
64 |
Dividends
paid by parent company |
|
(165) |
(1,420) |
Dividends
paid to non-controlling interests |
|
(289) |
(326) |
Purchases/sales of treasury shares |
|
(2) |
(14) |
Cash flows with shareholders |
|
912 |
(1,696) |
Issuance
of borrowings |
|
9,424 |
9,422 |
Repayment
of borrowings |
|
(6,176) |
(2,336) |
Payments
to bearers of perpetual subordinated bonds |
|
(582) |
(591) |
Funding
contributions received for assets operated under concessions |
|
143 |
152 |
Investment subsidies |
|
417 |
623 |
Other cash flows from financing
activities |
|
3,226 |
7,270 |
Net cash flow from financing activities |
|
4,138 |
5,574 |
Net increase/(decrease) in cash and cash
equivalents |
|
(1,294) |
(535) |
|
|
|
|
CASH AND CASH EQUIVALENTS - OPENING BALANCE |
|
4,182 |
4,701 |
Net
increase/(decrease) in cash and cash equivalents |
|
(1,294) |
(535) |
Effect of
currency fluctuations |
|
102 |
(36) |
Financial
income on cash and cash equivalents |
|
20 |
13 |
Effect of
reclassifications |
|
(117) |
39 |
CASH AND CASH EQUIVALENTS - CLOSING BALANCE |
|
2,893 |
4,182 |
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 36.7
million customers, 26.2 million of which are in France. The Group
generated consolidated sales of €71 billion in 2016. EDF is listed
on the Paris Stock Exchange.
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
containedin 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 29 April 2016 and in the EDF EMTN base prospectus
dated 14 September 2016 as supplemented first on 3 October 2016,
second on 14 November 2016 and third on 10 January 2017, which are
available on the AMF's website at www.amf-france.org and on EDF's
website at www.edf.com.
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.
|
Only print what you
need.
EDF SA
22-30, avenue de Wagram
75382 Paris cedex 08
Capital de 1 054 568 341,50 euros
552 081 317 R.C.S. Paris
www.edf.fr |
|
CONTACTS
Press: +33 (0) 1 40 42 46 37
Analysts and investors: +33 (0) 1 40 42 40
38
|
[1] Organic
variation at comparable scope and exchange rates
[2] Sum of
personnel expenses and other external expenses. At 2016
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operational expenditures of
service activities
[3] At 2016
exchange rate
[4] At 2016
exchange rate and at an assumed discount rate on nuclear provisions
of 4.1% in 2017
[5] Adjusted
for the remuneration of hybrid bonds accounted for in equity
[6] At constant
scope, exchange and hypothesis of pensions discount rates.
Excluding change in operating expenses of service
activities
[7] At 2016
exchange rate and assumption for 2018 power prices in France on
volumes not hedged as of 31.12.2016: at or above €36/MWh
[8] Linky is a
project led by Enedis, independant subsidiary of EDF under the
provisions of the French energy code
[9] At 2016 and
exchange rates. Cash flow excluding Linky, new developments and
asset disposals, with nuclear commitments discount rates at 4.1%
for 2017 and 3.9% for 2018, excluding interim dividend for 2018,
which will be decided in the second half of 2018
[10] Earnings
per share = (net income Group share - hybrid interest
payments)/average number of shares outstanding. In 2016, hybrid
interest payments amounted to €582 million
[11] At
constant scope, exchange rates and pension discount rates.
Excluding change in operational expenditures of service
activities
[12] At 2016
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operational expenditures of
service activities
[13] See press
releases of 19 July 2016, 21 September 2016 and 21 October 2016
[14] Extension
to 50 years of the accounting depreciation period of the PWR 900MW
series, excluding Fessenheim (see press release issued by EDF on 29
July 2016)
[15] At 2016
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operational expenditures of
service activities
[16] Please
refer to the press release "Board of Directors' meeting held on 13
February 2017"
[17] At 2016
exchange rate
[18] At 2016
exchange rate and at an assumed discount rate on nuclear provisions
of 4.1% in 2017
[19] Adjusted
for the remuneration of hybrid bonds accounted for in equity
[20] At
constant scope, exchange and hypothesis of pensions discount rates.
Excluding change in operating expenses of service activities
[21] At 2016
exchange rate and assumption for 2018 power prices in France on
volumes not hedged as of 31.12.2016: at or above €36/MWh
[22] At 2016
and exchange rates. Cash flow excluding Linky , new developments
and asset disposals, with nuclear commitments discount rates at
4.1% for 2017 and 3.9% for 2018, excluding interim dividend for
2018, which will be decided in the second half of 2018
[23] As of
2016, breakdown of sales across the segments, before inter-segment
eliminations. The 2015 figures have been restated in this
regard
[24] At 2016
scope and exchange rates. At constant pensions discount rate.
Excluding change in operating expenses of service activities
[25] As of
2016, breakdown of sales across the segments, before inter-segment
eliminations. The 2015 figures have been restated in this
regard
[26] At 2016
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operational expenditures of
service activities
[27] As of
2016, breakdown of sales across the segments, before inter-segment
eliminations. The 2015 figures have been restated in this
regard
[28] At 2016
consolidation scope and exchange rates. At constant pension
discount rates. Excluding change in operational expenditures of
service activities
[29] As of
2016, breakdown of sales across the segments, before inter-segment
eliminations. The 2015 figures have been restated in this
regard
[30] As of
2016, breakdown of sales across the segments, before inter-segment
eliminations. The 2015 figures have been restated in this
regard
[31] EDF EN and
Dalkia's activities in Poland are incorporated in the "Other
activities" segment
[32] Nuclear
installed base
[33] I.e. an
equity stake of 29.9% by Caisse des Dépôts and of 20% by CNP
Assurances
EDF PR FY2016 results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: EDF via Globenewswire