Universal Registration Document 2021

6. Financial statements

 1.4.3 Consequences of the Covid-19 pandemic

The economic disruption caused by the Covid-19 pandemic in 2020 had significant repercussions for many of the Group’s activities in 2020, particularly nuclear power, worksites and services.

For the half-yearly closing at 30 June 2020, then the annual closing at 31 December 2020, in-depth analyses were conducted in the Group’s entities to prepare reliable estimates of the impacts of the pandemic on the Group’s financial statements, based on specific reporting and valuation principles explained in the 2020 half-year financial statements (see note 2.1) and 2020 annual financial statements (see note 1.4.1).

The impact of the Covid-19 pandemic on the Group’s operating profit before depreciation and amortisation was estimated at €(1,479) million at 31 December 2020 and mainly concerned:

  • the France – Generation and Supply segment €(872) million, due to lower nuclear power output, a decrease in demand, and recognition of impairment on trade receivables;
  • the France – Regulated activities segment €(237) million, reflecting lower delivery volumes and the downturn in network connection activity as site work was suspended or slowed down; and
  • the United Kingdom €(182) million, mainly due to the decline in demand.

Even though the Covid-19 pandemic continued to have effects during 2021, its impacts on the Group’s operating profit before depreciation and amortisation at 31 December 2021 are not very significant, diffuse and not easily traceable.

Impairment of trade receivables

Analyses conducted by different Group entities to estimate credit losses on trade receivables at 31 December 2020 led to a €223 million increase to impairment of trade receivables for 2020 resulting from the pandemic, recognised in “Other operating income and expenses” in the income statement. This amount was calculated under the principles presented in note 1.4.1.2 to the consolidated financial statements at 31 December 2020. It comprised €80 million concerning the France – Generation and Supply segment, €58 million for the France – Regulated activities segment, €68 million for the United Kingdom, and €13 million for Belgium.

The risk analyses were updated at 31 December 2021 in view of the recovery levels observed over the year, and this led to recovery of a total €115 million from impairment concerning the various operating segments.

Note 2 Summary of significant events

The main significant events and transactions for the Group in 2021 and up to the date of approval of the consolidated financial statements are the following:

  • Nuclear developments:
    • EDF submitted to the Indian nuclear operator NPCIL the French binding techno-commercial offer to build six EPRs at the Jaitapur site (see the Group press release of 23 April 2021);
    • EDF decided to move Dungeness B into the defueling phase (see the EDF Energy press release of 7 June 2021, and notes 7, 10.8, 15.2);
    • Reactors of the Civaux and Chooz nuclear power plants: replacements and preventive checks on parts of the piping of a safety system (see the Group press release of 15 December 2021, and note 23);
    • AGR lifetime reviews were carried out (see the EDF Energy press release of 15 December 2021, and note 10.8);
    • Update on the Flamanville EPR (see the Group press release of 12 January 2022, and note 10.6);
    • On 13 January 2022 EDF updated its estimated nuclear output in France for 2022 (see the Group press release of 13 January 2022, and note 23);
    • On 7 February 2022 EDF adjusted its estimated nuclear output in France for 2022 (see the Group press release of 7 February 2022, and note 23);
    • On 11 February 2022 EDF adjusted its estimated nuclear output in France for 2023 (see the Group press release of 11 February 2022, and note 23).
  • Disposals:

    • Edison completed the sale of Edison Norge to Sval Energi for a value of $374 million (see the Edison press release of 25 March 2021, and note 3.1);

    • Edison completed the sale of Infrastrutture Distribuzione Gas (IDG) to 2I ReteGas for a value of €150 million (see the Edison press release of 30 April 2021, and note 3.1);
    • Dalkia completed the sale of its subsidiary Dalkia Wastenergy to Paprec (see the Dalkia press release of 28 July 2021, and notes 3.1 and 7);
    • EDF completed the sale of its interest in CENG (see the Group press release of 9 August 2021, and notes 3.1 and 7);

    • EDF completed the sale of the West Burton B CCGT gas power station to EIG (see the EDF Energy press release of 31 August 2021, and note 3.1);

    • Edison and Credit Agricole Assurances completed the transaction to accelerate the development of renewables in Italy together (see the Edison press releases of 3 and 14 December 2021, and note 3.1);
    • EDF transferred a property portfolio in the Île-de-France region to a joint venture with POWERHOUSE HABITAT (see the Group press release of 16 December 2021, and note 5.4).
  • Financing operations:
    • EDF launched an issue of a Euro-denominated perpetual social hybrid notes on 26 May 2021 with a total nominal amount of €1.25 billion (see the Group press release of 27 May 2021, and note 14.4);

    • EDF launched an issue of a senior Green Bond with a nominal amount of €1.75 billion on 23 November 2021 (see the Group press release of 24 November 2021 and note 18.3.2.2);

    • EDF announced the signature of a new credit facility indexed on social indicators, syndicated with 9 banks on 23 December 2021 (see the Group press release of 23 December 2021, and note 18.4).
  • Renewable energies:
    • Edison completed the acquisition of E2i (see the Edison press release of 16 February 2021, and notes 1.3.4.9 and 3.1);
    • EDF Renewables, Enbridge and wpd launched construction of the Calvados offshore wind farm (see the EDF Renewables press release of 22 February 2021, and note 12.3);
    • The EDF group won a 1.5GW offshore wind power project in New Jersey in the United States (see the Group and EDF Renewables press releases of 1 July 2021 and note 12.3);
    • For construction of France’s first offshore wind farm in Saint-Nazaire, production of components was finalised and offshore operations continued (see the Group and EDF Renewables press releases of 28 August 2021, and note 12.3);
    • The Dongtai V offshore wind farm in China was commissioned (see the Group and EDF Renewables press releases of 9 December 2021, and note 12.3).
  • EDF and AREVA reached a settlement agreement (see the Group press release of 30 June 2021, and note 7);
  • EDF put an end to Ecocombust, a project to develop a new class B wood-based fuel (see the Group press release of 8 July 2021, and note 3);
  • Framatome announced the completion of its purchase of Rolls Royce Civil Nuclear I&C (see the Framatome press release of 8 November 2021, and note 1);