The extreme cold snap in Texas in the first quarter had a significant negative impact on production EBITDA estimated at -€95 million. EDF Renewables was obliged to buy back energy at very high prices to meet its contractual commitments and had to book an impairment for one of its fleet assets, leading to a negative impact on net income.
The production EBITDA also benefits from an increase (+1.6TWh) in volumes produced thanks to the capacities commissioned.
“Development & Sale of Structured Assets” made a favourable contribution to EBITDA, notably owing to disposals in the United States and Portugal.
Development costs increased, supporting the 27% growth in the portfolio of wind and solar projects of 73GW.
The strong EBITDA growth can be attributed primarily to the recovery in services and works following a first-half 2020 negatively impacted by the closure of numerous customer sites, the postponement of construction projects, and continued gains in performance in heating and cooling networks.
It is also explained by a very good rebound in the works and energy efficiency activities in the UK.
Sales development remained strong, particularly in greening and operation and maintenance of heating networks, with contracts won in Issoire, Puteaux and Monplaisir (Angers) for example.
EBITDA rose sharply as a result of brisk activity at “Fuel” and “Primary Component” production plants and the lesser impact of the health crisis.
The “Installed base” activity, mainly in North America and France, also contributed favourably to EBITDA.
The action plan on structural costs also continues to contribute to EBITDA.
Order intake amounted to around €3.7 billion at end-2021 (1), an improvement relative to 2020.
Framatome is developing its engineering expertise and expanding its Instrumentation and Control (I&C) capabilities with the acquisition of the I&C activity of Rolls-Royce (2).
The extremely sharp decrease in EBITDA resulted mainly from a 4TWh downturn in nuclear output for an estimated -€198 million and from a substantial decrease in realised nuclear prices (-£12.6/MWh) stemming from a considerable volume of buybacks at high market prices, estimated at -€550 million.
Downstream activity was also impacted by the energy crisis in the United Kingdown. In particular, the contribution of the residential customer segment decreased as the rise in energy prices was not fully passed on in 2021 to customers with capped prices.
The acquisition of Green Network Energy’s customers, on the one hand, the integration of Utility Point and Zog Energy clients’ portfolio in accordance with the supplier of last resort mechanism, on the other hand, have required additional purchases.
Business in the professional segment increased relative to 2020, the latter having been adversely affected by the health crisis.
The electricity activities reported EBITDA growth, in particular thanks to the improved use of CCGT (combined cycle gas turbines) and of ancillary services in an environment of highly volatile market prices. The contribution from renewable energy generation also increased, especially wind power, against a backdrop of high prices.
Gas business benefited from the capital gain generated from the disposal of Infrastrutture Distribuzione Gas (IDG), the surge in activity (impact of the health crisis) in the industrial customer segments and a colder weather in 2021 than in 2020.
Ebitda also benefited from the growth of the services activities.
The creation of Edison Renewables is to be marked with the entry of a new financial partner, which acquired a 49% stake in order to develop new generation capacities.
In Belgium (3), the decline in EBITDA resulted primarily from reduced wind farm production, linked to less favourable wind conditions compared with 2020, and purchases at high prices, particularly at the end of the year.
Net installed wind capacity increased to 591MW (4), up 7.8% compared with end- 2020. Nuclear output is increasing. The improved availability of thermal plants helped to increase the services provided to the electric system.
After the slowdown in 2020 owing to the health crisis, service activities returned to growth and downstream activities held up well against a backdrop that continued to suffer from intense competition and extensions to social tariffs.
Luminus finalised the acquisition of around 330,000 customers from Essent Belgium, the Belgian gas and electricity supplier (5).
In Brazil, EBITDA increased in organic terms thanks to the increase in the price of the Power Purchase Agreement (PPA) relating to the EDF Norte Fluminense plant, by 28% in November 2020 and 7% in November 2021, as well as sales at high prices on the spot market.
The increased EBITDA of gas activities resulted mainly from the revaluation of long-term contracts (with no cash effect) in line with the substantial improvement in medium- and long-term USA-Europe spreads and an improvement in the operational margins of the Group’s gas businesses.
EDF Trading posted EBITDA of €1,200 million, up an organic 89.6% relative to 2020. This was an outstanding performance given the extreme volatility on the commodities markets.
The trend was also underpinned by the sale of real estate in France.
(1) At Framatome scope.
(2) See the Framatome press release of 8 November 2021.
(3) Luminus and EDF Belgium.
(4) Net capacity for Luminus. Gross installed wind capacity totaled 658MW at end-2021 (+11.9%).
(5) See the Luminus press release of 3 May 2021.
