EDF Energy smashed analyst expectations today as the French utilities giant enjoyed a strong performance from its renewable energy business.
The firm’s profit for 2019 was €5.2bn (£4.3bn), almost five times larger than the €1.1bn it posted in 2018. Analysts had predicted a profit of €3bn.
Revenue rose four per cent to €71.3bn, ahead of forecasts of €70.9bn.
EDF reported €1.8bn of free cash flow, and earnings per share of €1.50, a seven and a half times increase on the 20 cents averaged in 2018.
Why it’s interesting
The French power giant spent much of 2019 expanding its renewables portfolio, and only yesterday announced the acquisition of electric vehicle charging firm Pod Point.
Along with beginning the construction of the 450 megawatt Irish windfarm Neart na Gaoithe, EDF has also set up a renewable energy business with Emirati firm Masdar.
It has also taken stakes in solar and biomass projects in Egypt and the Ivory Coast respectively to underline its credentials as a renewable energy super-supplier.
Earnings, however, did feel the pinch of lower nuclear output, as milder weather conditions meant that there was less demand for the energy source.
What EDF said
Jean-Bernard Lévy, EDF’s chairman and chief executive, said: “The rebound first seen in 2018 was confirmed and enhanced by our performance in 2019. EDF is a profitable company, which has achieved its financial targets.
“The unwavering commitment of group’s employees enabled us to further deploy our CAP 2030 strategy at a rapid pace, whilst making disciplined investments and reducing operational costs.
“We are forging ahead in all renewable energies, moving ahead with our commercial offensive in France and making strong progress with the implementation of our solar, electricity storage and electric mobility plans and we are investing in nuclear existing assets and projects”.