Company details EDF is a world-leading electricity company, which is created in 1946 and largely owned by French government. It participates in many business areas: energy supply, trading, transmission, and distribution. (EDF Group 2009 document, 2009) UK, USA, South Africa, and China are EDF’s main international growth markets. It supplies energy and services to more than 38 million customers around the world. What is more, EDF is committed to sustainable development. It remains the lowest carbon emitter among the major European energy companies, especially electric utilities. EDF also engages in social responsibilities. It promotes access to energy and energy efficiency and support education on energy issues. (EDF group 2009 document, 2009) Objectives This report will analyse profitability and performance of EDF since 2004 to the present using historical data and financial ratios. And by using PESTEL framework to evaluate the advantages and risks of operating in several geographical markets in several energy areas. And also limitations of this PESTEL framework will also be discussed. This report will also examine whether EDF will sustain its performance. Profitability and performance From graph 1, we can see that EDF’s operating profit and net income kept increasing from 2004 to 2007. However, due to the 2008 global financial crisis, EDF’s operating profit and net income decreased a lot. EDF’s operating profit and net income grew quickly in 2009. In 2010, the Nam Theun 2
My individual seminar paper is written on EDF Energy. This is one of UK’s largest energy companies and its large producer of low carbon electricity. They generate around one fifth of the UK’s electricity. They supply electricity and gas to around 5.5 million residential and business customers, making them the biggest supplier of electricity by volume.
EDF purpose is to protect nature ,help people thrive , have clean air and water , and have a stable climate but still carry an economic benefits. The EDF started in 1967 for the purpose of
The return on shareholders’ fund, capital employed, total assets all have gone down during this period. The ability of the company to pay its short term debt hasn’t varied much, but the administrative expenses have gone up by a very large amount.
Benjamin K. Sovacool is the director Danish Center for Energy Technology at the Department of Business Technology and Development and focuses primarily on energy policy and environmental issues. He has explored numerous topics on the connection between energy systems and society and has provided numerous journals analyzing the future of
Renewable energy has currently become a significant aspect in the countries generation, combination, and a constitution focus of government policy for energy, and environmental protection. As a result of public’s growing responsibility for the environment and constantly binding rules, and regulations of emission in the electric power industry, government has facilitated policies to boost the amount of renewable energy in the electricity generation portfolio. Additionally, the generation of electricity from renewable resources creates insufficient, and frequently, zero emissions of pollutants that comes from traditional fossil fuel production technologies. The additional use of renewable energy aids utilities in their emission agreement obligations. Furthermore, the anticipation of agreement with any future carbon emissions management would further toughen the incentive to move towards cleaner electricity creating technologies (Langwith, 2009).
Looking back at the statement of financial positon for 2013, 2014 and 2015 shows increases each year in the revenue. Investments over this period have increased by 2 million. Equipment and improvement expenses have gone down. In 2013 the expense was over 300k. 2014 and 2015 were much smaller around 10k. 2016 jumped up to just over 200k. This shows that attention is being paid to improving the office and equipment and staying up to date with technology.
The profit margin ratio of the organization indicates that the profit margin in 2015 decreased in comparison to 2014, but increased in comparison to 2013. The main reason is the poor growth in net income due to increase in cost of revenues in 2015 and 2013. In relation to debt to equity ratio of the organization debt to equity in 2015 and 2014 slightly increased. The reason of increase in the debt to equity ratio is the reduction in equity financing and increase in debt financing that means more financial leverage. The situation in 2013 was same as the ratio was 0.02 times. It means the organization increased capital through long-term debt. Current ratio growth in also not good as the current ratio of the organization in 2015 was 1.2 times
The purpose of the following blog post is to introduce the reader to the relationship between our global Economy, the Energy that we produce and the Environment we are part of, also known as the three Es. My goal is to give my readers a better understanding of the connections these three different areas have and how they relate to one another. Furthermore I would like to enable readers to comprehend the increasing challenges all three E’s are facing, and the implications these may have on our future.
Profitability ratios decreasing from 2005 to 2006 although the sales has increased substantially and the net income as well but not in the same percentage of increase due to the high reliance on debt as the interest expense increased as mentioned before.
Political Factors One of the key political factors Blue Nile, and the entire jewelry industry, must concern themselves with is the risk of procuring conflict diamonds. For the most part diamonds are obtained in politically unstable countries in the world, like Africa. The majority of diamond mines are within countries that are underdeveloped, where corruption is high and laws are easily broken. The chance for a militia group taking over diamond mines or diamond smuggling are high in these countries and could potentially become pricy for Blue Nile. Initiatives enacted in early 2000’s have made significant impacts on illegal trade within the industry.
The increase rate of revenue is relatively stable, with a rate around 14%; the increase rates of operating profit (before exceptional items) and profit before tax and exceptional items are also relatively stable, with a rate around 24%, however the increase rates of operating profit, profit before tax, basic earnings per ordinary share had changed greatly between 2008 and 2010, while the difference of change rate between 2008 and 2009 is higher than 50%, which is quite strange because the revenue and profit before tax and exceptional items did not suffer a great change (Krishna, 1985).
The country’s energy infrastructures received the grade “D+”, meaning they need serious efforts to improve it or it will have dead mental effects on the country as a whole. According to the report, the country relies on aging electrical grid and pipelines a distribution system that originates in the 1880. There are nominally 150, 00 miles of crude oil and product pipelines and 150,000 miles of natural gas
According to the case study written by Jurek, Bras, Guldberg, D’Arcy, Oh, and Biller, energy costs were steadily rising and were predicted to continue this trend going into the future. At the same time, utility companies were beginning to implement Smart Grid technologies to increase the efficiency of energy distribution. One resulting program to emerge from
By taking the position as Raj Bhatt, Business Development manager of GE Canada, I am comfortable and confident that energy efficiency is an attractive industry and business opportunity. What makes Raj Bhatt believe that the Energy Efficiency projects will be successful in Canada is that the project helps not only the ESCo, which conducts the performance-based contracting, but also the customers, who are more aware of the benefits of Energy Efficiency project. The Energy Efficiency project will optimize the energy usage, including conservation, use of efficient equipment and off peak usage. Even though the project has required intensive initial capital investment and long payback period, it will
Higher sales growth has been one reason why the major players have been able to put up a reasonable show in recent years. But what probably brought about the dramatic turnaround in financial performance in 1999 is the sharp improvement in profit margins in the business.