|
|
 |
|
Viewing report
|
|
|
|
European Utilities Key Players and Strategies - EDF
Datamonitor, Dec 2005, Pages: 89
Chapter 1
Introduction 14
Utility competition is starting to transcend national borders, but a single EU market place remains distant 14
Larger utilities need to find a suitable geographical arena in which to pursue their ambitions 14
The emergence of pan-European suppliers is an ideal for now, the reality is the emergence of geographic competitive arenas 16
Chapter 2
Our european utility scorecard 17
E.ON leads the our European Utility Ranking, EDF ranks second out of the 12 companies benchmarked 17
EDF’s supply assets and financial strength push up its score on Datamonitor’s European Utility Scorecard, to 47* out of 100 18
EDF has a spread of active interests across the WMed, NWE and CEE European competitive arenas 19
EDF is active in 3 of the 5 competitive arena’s for power led assets and just one for gas 20
EDF is the second largest supplier of end user volumes for power and gas across 32 European markets, with 6.5%* market share 21
Chapter 3
Power supply volumes and market shares 22
With the largest market share across Europe, EDF has entered into the WMed, NWE and CEE markets, with a balanced portfolio 22
EDF has gained the highest market share, 12.8%* across the EU 32 markets 23
EDF’s power volumes geographic spread stretches across 3 markets, WMed, NWE and Central Europe 25
EDF currently has no power volumes sales across the Nordic region, a region dominated by Vattenfall, E.ON and Nordic regional suppliers 26
EDF’s power volumes across the NWE region totals 92TWh, 100-150TWh behind E.ON and RWE, with MEU sales accounting for 58% 27
EDF’s power volumes across CEE total 6.8TWh, the smallest share of the leading European utilities active in the region 28
EDF dwarfs the competition for power volumes sales across the WMed region, due to its interests in France and Italy, with 374TWh 29
EDF’s French and UK power volumes combine to account for almost 80% of their end user volumes in RES and 90% for I&C volumes 30
EDF has sizeable market share in only one of the leading competitive markets, as assessed by Datamonitor’s MCI rating – that of the UK 32
EDF’s power supply revenues total €34,834m, with 48% made from supplying MEU customers 34
EDF derives a higher proportion of revenue from Germany and Italy than the proportion of power supplied 36
Chapter 4
Gas supply volumes and market shares 37
EDF’s gas sales are driven through its UK and German assets, thus active in only on arena, NWE and weighted towards the lower end of the market of RES and SME sales 37
EDF has only attained a 0.4%* market share across the EU 32 markets for end user gas supply volumes 38
EDF’s gas activities are located in just one of the competitive arenas, NWE 40
EDF has no gas volumes sales across the Nordic region, a market that is still immature, with only E.ON and oil majors active 41
EDF gas volumes across the NWE region totals 32TWh, like Centrica it has a RES supply bias, with 3 out of 4 units sold to this sector 42
EDF has no gas volumes sales across the CEE region, E.ON is present, but this region is dominated by Russia’s Gazprom 43
EDF has no gas volumes sales across the WMed region, an arena dominated by national players, primarily GDF, Eni and Gas Natural 44
EDF is active in the UK and Germany market, a larger share of RES volumes contributed from the UK, the converse in I&C gas supply 45
EDF is active in only one of the leading competitive markets for gas, as assessed by Datamonitor’s MCI rating – that of the UK 47
EDF’s gas supply revenues total €921m, sourcing all its revenues from NWE markets and a 75% contribution from RES 49
Chapter 5
Generation capacity and market share 51
EDF is the largest generator across Europe, its French nuclear assets drive its market share, however growing assets outside of France now total 23GW 51
EDF ranks as the largest European generator across Europe, with 124GW of capacity, three times greater than its nearest competitor 52
EDF’s geographic power plant spread traverses 3 competitive arenas, WMed, CEE and the NWE arenas 53
EDF’s has no power plant assets across Nordic region, a region dominated by Vattenfall, E.ON, Fortum and Statkraft 54
EDF’s plant capacity across the NWE region totals 11GW, a market where the German giants own 25% of capacity 55
EDF supply assets in the CEE markets total 5GW, half the size of CEZ but ahead of E.ON and RWE 56
EDF’s hegemony of the WMed competitive arena with a capacity of 107GW, leveraged through its French power base 57
EDF has a 12.5% and a 8.5% market share of total and renewables generation capacity across the EU 32 markets respectively 58
EDF’s fuel mix is weighted distinctly towards nuclear, 52%, evident from its deviation from the EU 32 fuel mix 60
France dominates EDF’s country generation mix, at 82%, active in 6 markets, besides France, EDF’s only other high market penetration is in Poland 62
EDF’s generation output totals 600TWh, driven by its nuclear load in France, with 82% of its total output 64
Chapter 6
Structural hedge – power 66
We use generation and supply market shares to determine if companies are generally long or short in power 66
EDF is much longer in absolute terms in its NTR*, by 397.4TWh, the trend with most other European players being generally 30TWh long 67
Reviewing the NTR as a percentage, EDF additional 397.4TWh makes the company long by 197% 68
EDF NTR* is structurally long in almost across all its markets, though short across a handful of CEE markets 69
Currently energy companies with higher market share are structurally long and profitable 70
Chapter 7
Structural hedge – gas 71
European utilities gas equity and gas supply market shares determine if these companies are generally long or short in gas 71
EDF is short in its NTR* gas position, at 27.8TWh, where the trend for the leading energy companies remains being significantly short 72
A handful of energy companies outside the oil and gas majors have equity gas, EDF has none, unlike Centrica, GDF, RWE and E.ON 73
Chapter 8
Base financials overview 74
EDF is financially strong, with average gearing, high cash flow and following flotation, additional sums for acquiring European assets 74
EDF’s revenues in 2004 exceeded €45bn, only exceeded by E.ON from the major power players 75
Over the last five years EDF’s revenues have grown at a CAGR of 8%, earnings grown faster by 17% CAGR 76
Utilities PE ratio’s are currently and performing near or above the sector average 77
EDF’s gearing is 1.1x earnings, average amongst its peers, and allowing it the ability to leverage additional funds if required 78
EDF’s free cash flow amounts to €3.4bn, a sizeable sum amongst its peers, securing potential additional funds if seeking a major takeover 79
Chapter 9
Appendix 80
Understanding Datamonitor’s European Utility Scorecard rating, focusing on competitive sectors of generation, equity gas and retail volumes 80
Scoring methodology 81
Scorecard rating component breakdowns and scoring metrics and measures 82
Data methodology 83
The MCI Index shows how attractive a particular market is to new entrants in terms of the competitive environment 84
The MCI Index is calculated by deriving a weighted average of scores over 9 key metrics 85
Glossary of terms 86
Future readings 88
SPP writing team 88
How to contact experts in your industry
List of Tables
Table 1: Datamonitor’s European Utility Scores and ranking for the 12 benchmarked companies 17
Table 2: EDF Competitive Arenas matrix, 2005 19
Table 3: Scoring rating matrix for Datamonitor’s European Utility Scorecard
List of Figures
Figure 1: 32 European markets divided into 5 regional competitive arenas 16
Figure 2: EDF’s European Utility Scorecard, 2005 18
Figure 3: Companies matrix by value chain focus and competitive arena, 2005 20
Figure 4: Top twelve power and gas supply volume market shares across 32 European markets, 2005 21
Figure 5: Leading players power supply volumes (GWh) market share across EU 32 markets, 2005 23
Figure 6: Weighting between I&C and residential power volumes for the key players across EU 32 markets, 2005 24
Figure 7: Power volumes supplied across the EU 32 markets by sector and competitive arena, 2005 25
Figure 8: Power volumes supplied in the Nordic competitive arena by company, 2005 26
Figure 9: Power volumes supplied in the NWE competitive arena by company, 2005 27
Figure 10: Power volumes supplied in the CEE competitive arena by company, 2005 28
Figure 11: Power volumes supplied in the WMed competitive arena by company, 2005 29
Figure 12: EDF’s power supply volumes (GWh) RES country breakdown, 2005 30
Figure 13: EDF’s power supply volumes (GWh) I&C country breakdown, 2005 31
Figure 14: Scores and geographical distribution of 13 power markets assessed by Datamonitor’s MCI Index rating, 2005 32
Figure 15: Map representing EDF’s size and the geographical distribution of its power market share across EU 32 markets, 2005 33
Figure 16: EDF’s power supply volumes revenue breakdown, by sector, 2005 34
Figure 17: EDF’s power supply volumes revenue breakdown, by competitive arena, 2005 35
Figure 18: Proportion of revenues vs. end user power volume sales in markets where EDF has a >5% volume market share, 2005 36
Figure 19: Leading players gas supply volumes (GWh) market share across EU 32 markets, 2005 38
Figure 20: Weighting between I&C and residential gas volumes for the key players across EU 32 markets, 2005 39
Figure 21: Gas volumes supplied across the EU 32 markets by sector and competitive arena, 2005 40
Figure 22: Gas volumes supplied in the Nordic competitive arena by company, 2005 41
Figure 23: Gas volumes supplied in the NWE competitive arena by company, 2005 42
Figure 24: Gas volumes supplied in the CEE competitive arena by company, 2005 43
Figure 25: Gas volumes supplied in the WMed competitive arena by company, 2005 44
Figure 26: EDF’s gas supply volumes (GWh) RES country breakdown, 2005 45
Figure 27: EDF’s gas supply volumes (GWh) I&C country breakdown, 2005 46
Figure 28: Scores and geographical distribution of 13 gas markets assessed by Datamonitor’s MCI Index rating, 2005 47
Figure 29: Map representing EDF’s size and the geographical distribution of its gas market share across EU 32 markets, 2005 48
Figure 30: EDF’s gas supply volumes revenue breakdown, by sector, 2005 49
Figure 31: EDF’s gas supply volumes revenue breakdown, by competitive arena, 2005 50
Figure 32: Generation capacity (MW) for 12 leading European energy companies across 32 European markets, broken down by fuel type, 2005 52
Figure 33: Generation capacity (MW) across the EU 32 markets by sector and competitive arena, 2005 53
Figure 34: Generation capacity (MW) across the Nordic competitive arena by company, 2005 54
Figure 35: Generation capacity (MW) across the NWE competitive arena by company, 2005 55
Figure 36: Generation capacity (MW) across the CEE competitive arena by company, 2005 56
Figure 37: Generation capacity (MW) across the WMed competitive arena by company, 2005 57
Figure 38: EDF’s generation capacity (MW) market share across 32 European markets, 2005 58
Figure 39: EDF’s renewable capacity (MW) market share across 32 European markets, 2005 59
Figure 40: EDF’s generation fuel mix across its European asset base, 2005 60
Figure 41: EDF’s generation fuel mix across its European asset base against EU 32 market proportions, 2005 61
Figure 42: EDF owned generation capacity (MW) breakdown by country, 2005 62
Figure 43: EDF generation capacity (MW) market share in each European country, 2005 63
Figure 44: EDF’s generation output by fuel type, 2005 64
Figure 45: EDF’s generation output breakdown, by competitive arena, 2005 65
Figure 46: Estimated absolute Net Trade Requirements (NTR)* for power, for the benchmarked 12 players, 2005 67
Figure 47: Estimated percentage Net Trade Requirements (NTR)* for power, for the benchmarked 12 players, 2005 68
Figure 48: EDF’s Power NTR position across the European markets it is active in 69
Figure 49: Operating income vs. NTR position for 12 benchmarked players, 2004/2005 70
Figure 50: Estimated absolute Net Trade Requirements (NTR)* for gas, for the 12 benchmarked players, 2005 72
Figure 51: Estimated percentage Net Trade Requirements (NTR)* for gas, for the 12 benchmarked players, 2005 73
Figure 52: Revenue and net income for 12 energy companies benchmarked, 2004 75
Figure 53: EDF’s revenue and net income 5 year summary, 2000-2004 76
Figure 54: PE ratio for listed companies, for the 12 companies benchmarked, 2004* 77
Figure 55: Debt/Equity ratio for 12 benchmarked companies, 2004 78
Figure 56: Free Cash Flow for the 12 benchmarked companies, 2004 79
Figure 57: Understanding Datamonitor’s European Utility Scorecard 80
Figure 58: Datamonitor’s MCI Index scale for market assessment 84
Figure 59: The MCI Index is calculated by deriving a weighted average of scores over 9 key metrics 85
Customers who bought this item also bought
European Utilities Key Player Profiles: EDF
The Rise of Renewable Energy Strategies amongst Major European Utilities
European Utilities Key Players and Strategies - Vattenfall
European Utilities Key Players and Strategies - Centrica
European Utilities Key Players and Strategies - Nuon
European Utilities Key Players and Strategies - RWE
European Utilities Key Players and Strategies - Enel
European Utilities Key Players and Strategies - GDF
European Utilities Key Players and Strategies - CEZ
European Utilities Key Players and Strategies - Endesa
European Utilities Key Players and Strategies - Scottish Power
European Utilities Key Players and Strategies - Electrabel
|
|
|
|
