EDF or Électricité de France S.A. is an electric utility company headquartered in Paris, France.
It is having businesses in electricity generation, transmission and distribution as well as energy trading. EDF is the world’s largest producer of electricity and has a presence in 15 countries globally through wholly owned subsidiaries, JVs or by having stake in power companies. It is the world’s largest nuclear operator in the world, with nuclear power accounting for 54% of EDF’s installed capacity of 136.2 GW. Nearly 87% of the group’s global electricity production of 623.5 TWh is from carbon-free sources i.e. nuclear, hydro, wind and solar power.
EDF’s history lies in the complex power sector of post war France, prompting the French Government to create a state monopoly and thus, EDF was incorporated on 8th April, 1946. Till 19th November, 2014 EDF was a state owned corporation, after which it became a limited liability corporation with the French Government retaining 85% of stake in the company. To facilitate the growing need for safe, affordable, low-carbon electricity, EDF invests actively in R&D - € 650 million in 2014, supplemented by 10 R&D centres globally and 14 laboratories. On July 25, 2014, EDF acquired Dalkia, an energy service company offering management and maintenance services to industrial production sites, offices, public utilities and hospitals and an annual turnover of € 3.5 billion. With Dalkia’s inclusion, EDF is now one of Europe’s top 3 energy service providers.
EDF plans to be an efficient and responsible energy company, championing low-carbon growth is reflected in Cap 2030, the group’s strategy for the next 15 years. As part of the vision, 20 operational action programmes, ranging from strategy to shared project involving Group employees has been launched as well as a mammoth investment commitment of € 6.4 billion in new energy and renewables in 5 years.
Sales: $ 96.7 billion
Net Income: $ 4.7 billion
Asset: $ 324.3 billion
The span of power & energy companies encompasses a wide variety of firms involved in either one of generation, transmission, distribution and sale of energy or multiple functions or in some cases, all of them. Additionally, there are multiple sources of energy involved, some being more capital intensive than the others. Hence, it would be difficult to rank the companies this wide gamut of companies by one specific metric. To have a fair estimation, the following method has been adopted:
• Top 21 companies from Forbes Global 2000 in electrical utilities segment are shortlisted
• The following values are considered: Revenues, Net Income, Assets
• A score is assigned for each value based on the rank of the company. E.g.: The company with highest & lowest sales is given score of 21 and 1 respectively. Similarly for the other values.
• Weighted score for each company is determined, based on the following formula:
(Revenues score*0.3) + (Net Income score*0.3) + (Assets score*0.4)
Assets are given a higher weightage as it provides an avenue to increase net income by way of sale of assets.
• Final rank is decided on the basis of the weighted score with the company having highest & lowest score ranked as 1 & 21 respectively