PRESS RELEASE
22 April 2016 | |
Board of Directors' meeting held on 22 April 2016
Wholesale power prices - ranging between 25 and 28 €/MWh since the beginning of 2016 - are at an all-time low. Prices could stay at this low level in France and in Europe over the next two to three years. In France, the end of regulated tariffs for businesses at end 2015 increases EDF's exposure to wholesale market prices. Around 65% of EDF's generation output in France is now exposed to market prices.
EDF announces consequently an action plan in order to enable the company, despite these adverse market conditions, to continue its strategic development within the CAP 2030 framework.
Investments on the existing scope will be reduced by close to €2bn between 2015 and 2018, with the objective to reach €10.5bn by then.
Investments excluding existing scope representing close to €2bn per year are planned until 2018 in regulated activities (Linky meters whose rollout is already under way, construction of new generation units from renewable energy sources, Hinkly Point C project).
The total amount of Group investments should hence range between €12.5bn and €13.5bn per year over the next three years.
The Group already reduced cost by around €300m in 2015 compared to 2014 and announced, during the presentation of its annual results on 16 February 2016, a cost reduction objective of €700m in 2018 compared to 2015.
Cost reductions are strengthened and furthered. The reduction objective is reinforced to at least €1bn in 2019 compared to 2015.
The disposals plan initiated in 2015 to contribute to financing investments corresponding to new developments is strengthened. The Group sets an assets disposals target of around €10bn between 2015 and the 2020 horizon, including an evolution of RTE's equity capital, thermal power generation assets outside of France and minorities stakes.
Note: these figures do not include the projected acquisition of a controlling stake in AREVA NP.
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 a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 37.8 million customers, of which 28.3 million in France. The Group generated consolidated sales of €72.9 billion in 2014, of which 45.2% outside of France. EDF is listed on the Paris Stock Exchange.
Only print this message if you really need to
EDF SA 22-30, avenue de Wagram 75382 Paris cedex 08 Capital de 930 004 234 euros 552 081 317 R.C.S. Paris www.edf.fr |
CONTACTS
Press office: +33 1 40 42 44 19 Analysts and investors: +33 1 40 42 40 38 |