EDF Group Results 2020 – highlights for EDF Energy Ltd
Please follow this link to the EDF Group media release relating to the Group’s Annual Results for 2020 which were published this morning. These relate to the consolidated performance of EDF Group and include a summary of EDF’s performance in the UK.
EDF Energy Ltd will provide an external communication with the breakdown of how each part of its business has performed when it publishes its annual segmental accounts before the end of April this year.
Key points for the UK
- EBITDA for 2020 was £712 million (+3% growth vs. 2019) driven by higher nuclear prices and improvements in our residential performance offsetting lower nuclear volumes (-5.3TWh) and Covid-19 impacts.
- EBIT was -£862 million.
- Covid-19 has affected all parts of the business but has mainly impacted Customers performance. Lower electricity usage volumes among business customers and the increase of bad debt provision resulted in an EBITDA impact of -£160 million.
- 18 out of 20 key milestones for 2020 were delivered at Hinkley Point C, but the impact the impact of Covid-19 means the start of electricity generation from Unit 1 is now expected in June 2026.
Residential accounts decreased slightly to just over 4.8 million, down from just over 5 million in 2019. This figure does not include our appointment to take on supply of Green Network Energy’s residential customer accounts which occurred in 2021.
We continue to focus on delivering great customer service, maintaining a Trustpilot score of 4.3 out of 5.
The nuclear generation fleet produced 45.7TWh during 2020, 5.3TWh less than 2019. This decline resulted primarily from the outage of Hinkley Point B for a graphite inspection. Hunterston B came back to the grid in September and Dungeness B is still offline. Our output was also affected by the de-load of Sizewell B in May-Sept at the request of National Grid, which was fully compensated.
Hinkley Point C
Covid-19 has had an impact on construction at the site. Extensive measures were introduced to ensure the safety of workers and the community. Despite the challenges, 18 of the 20 milestones set for 2020 were delivered but the impact of the pandemic means the start of electricity generation from Unit 1 is now expected in June 2026.
At the end of 2020, the Government confirmed it was formally entering negotiations with EDF on the development of Sizewell C.
In 2020, EDF Renewables entered the Republic of Ireland market with the acquisition of 50% of the Codling offshore wind farm project, and the acquisition of Wessex Solar which includes eight solar projects with around 100 MW capacity.
The offshore construction of the 450MW Neart na Gaoithe (NnG) offshore wind started in August 2020 and onshore construction continues. NnG will be built 15km off the coast of Scotland and is a joint venture with Irish electricity company ESB. It will create new jobs and manufacturing opportunities in Scotland. Eyemouth Harbour has been confirmed as the location for NnG operations and maintenance base where 50 people will be employed over the 25-year lifetime of the wind farm.
2020 also saw the completion of the 11 MW Burnfoot East onshore wind farm in Clackmannanshire in Scotland.
Notes / Glossary of terms
EDF Renewables’ accounts are not included in the above as they are consolidated and presented as part of the EDF Renewables Group.
Earnings before interest and tax (EBIT) / Operating profit
This is a company’s operating profits before payments for tax and interest payments are included. The charge for depreciation and amortisation is included in the operating profit figure.
Earnings before interest, tax, depreciation and amortisation (EBITDA)
This is effectively the company’s net income from selling energy minus its operating expenses, but it excludes the significant costs involved in repaying loans, paying tax and the declining value of the assets it owns (e.g. buildings, power stations and equipment).
It also does not include the amount a company must invest to maintain existing assets or build new power stations.