Edf "risks Serie B". These words, spoken by CEO Jean-Bernard Levy, give an idea of the crisis facing the French energy group, which in 2020 saw its net profit plummet by 87% to 650 million, under the effect of the health crisis and non-recurring items. The profit came from 5,2 billion in 2019, and turnover also fell, 69 billion (-3,2%). It is therefore not surprising that the stock lost more than 3% on the Paris Stock Exchange in mid-morning, at 10,2 euros per share. Above all, EDF is paying for the fact that it has bet almost everything on nuclear power in recent years, and Covid, for example, has blown up the large project for the Hinkley Point, in the Uk. This is why the French group now plans to change course and focus on renewables: the goal is to invest in solar and wind power to bring green production capacity to 60 GW in 2030.
However EDF underlines its “resilience, both from an operational and financial point of view. Despite a historic recession, we are delivering solid financial results”, commented CEO Jean-Bernard Levy, who announced during a conference call the increase of medium-term targets in renewable energies. The French group controls in Italy Edison, which instead defended itself very well even in this complicated 2020, closing with a return to profit for 19 million euro compared to the loss of 436 million euro recorded in 2019 which "was affected to a greater extent by the write-downs of the E&P assets being divested".
"Despite the economic crisis caused by Covid-19 - explains the company - which had a negative impact on the 2020 Ebitda estimated at 59 million euros, the group's margins are growing thanks above all to renewables". In 2020 Ebitda grew by 13,6% to 684 million euros while net financial debt at the end of 2020 remained stable at 513 million euros (from 516 million euros in 2019). As for the future, Edison expects Ebitda growth for 2021 which will fall within a range of 680 to 740 million euros. The board also decided to propose to the shareholders' meeting the full settlement of the losses existing at 31 December equal to 918 million euros (of which 68 million euros referred to 2020) as well as through the use of the available reserves of 277 million euros, also through a reduction of the share capital for 641 million euros.
As regards the results of the parent company, Edison Spa closed with revenues of 4.432 million euros and a negative net result of 68 million euros (against a negative net result of 411 million euros in 2019).
Still on the energy front, it also published the 2020 accounts the Spanish Repsol, which closed with a loss of 3,29 billion, however improving the loss of 3,82 billion euro of the previous year. Adjusted net profit was €600 million compared to €2,04 billion a year earlier. The group specified that "the net loss narrowed in the fourth quarter but the activity suffered from a difficult context due to the coronavirus pandemic, with the drop in raw material prices which damaged inventories".
