EDF Group results February 13, 2014
Please follow this link to the EDF Group media release relating to the worldwide Group’s Annual Results for 2013 which have been published this morning.
Please note that these results relate to the performance of the entire EDF Group, and include a summary of EDF Energy’s performance in the UK. EDF Energy will provide a detailed breakdown of how each part of its business has performed in its annual segmented accounts.
The key points relating to EDF Energy’s performance in 2013 are:
- Operating Profit (EBIT) for 2013 was £863m.1
- The operating profit was driven by the strong operational performance of EDF Energy’s eight existing nuclear power stations. They generated 60.5 TWh of electricity which is the best output in eight years.
- EDF Energy expects to be able to extend the life of the Dungeness B nuclear power station by ten years to 2028 with a decision expected during 2014.2
- Based on the expected life extensions, all seven of our AGR stations will be operating in 2023 when the new nuclear power station at Hinkley Point C is due to be commissioned if a final investment decision is taken in 2014.
- In 2013 EDF Energy and the UK Government reached agreement on the principal commercial terms for an investment contract for a new nuclear power station at Hinkley Point C in Somerset. This is subject to state aid approval by the European Commission which launched an investigation on December 18.
- The company reinvested all of its operational profit and more back into the business, with over £1.1bn being spent on its existing nuclear and coal stations, its new nuclear project, new generation capacity, gas storage facilities and in its customer supply business. The company has reinvested around £3.5bn back into the UK over the last three years.
- In 2013, EDF Energy paid £300m in interest payments on its loans, £114m in corporation tax and £170m to repair the deficit into its employees’ pension scheme.
“The investment we are making in our existing nuclear power stations has resulted in their best performance for eight years. We believe that their operating lives can be safely extended and we expect to be able to announce a 10 year life extension for Dungeness B before the end of 2014. This means existing nuclear can hand over directly to the next generation of nuclear power stations without the need for more fossil fuel generation.”
“Our customer numbers also continue to grow. We took early action to limit price rises and will continue to work closely with policy-makers to bear down on rising costs for consumers. We will listen to our customers and their concerns and take action on their behalf wherever we can.”
Fair value for customers
- EDF Energy’s announcement in November to limit price increases means its customers have not had to wait to see the benefits from changes to ECO charges – unlike customers of some other suppliers.
- Our standard variable prices have on average been the cheapest for 95 weeks out of 104 in 2012 and 2013 compared to other major suppliers.*
- We have over 5.7m residential customer accounts – a net increase of 250,000 in 2013 and 600,000 over the last three years.
- Our Blue +Price Promise tariff – which offers no termination fees, fixed prices and a promise to inform customers if they can save £52 a year or more with another supplier – has gained 2m customer accounts since it was launched in April, 2012.
:: For further information the UK results, please contact Nick Foley in the EDF Energy press office on 0207 752 2196 or Louis Blake on 0207 752 2248.
1. Operating profit as reported in 2012 was £801m. This included the impact of a one–off charge of £190m relating to the value of EDF Energy’s gas generating assets. This means underlying profitability was 12.9% lower in 2013.
EDF Energy’s financial performance as measured by earnings before interest, tax, depreciation and amortization (EBITDA) was £1,689m. EBITDA in 2012 was £1,666m. This means EBITDA was 1.4% higher in 2013.
2. Dungeness B is a nuclear power station, located in Kent. It has generated low carbon electricity since 1983 and is currently scheduled to close in 2018. Dungeness B has a capacity of 1040 MW and is capable of supplying over 1.5 million homes.
Glossary of terms
Earnings before interest, tax, deprecation and amortization (EBITDA)
This is effectively the company’s net income from selling energy minus its operating expenses. It is not a measure of profit as 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 factor in the amount a company must invest to maintain existing assets or build new power stations.
Reflects the value of non-physical assets owned by the company such as copyright or patents.
Earnings before interest and tax (EBIT) / Operating profit
This is company’s ‘operating’ profits before payments for tax and interest payments are included. The charge for depreciation and amortization is included in the operating profit figure.