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Analyzing Profitability And Performance Of Edf Since 2004

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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

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