EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

Other energy and commodity purchases 49.1.1.1.2 Purchase commitments for other energies and commodities mainly concern coal and oil used to operate the fossil-fired plants, and purchases of biomass fuel used by Dalkia in the course of its business. Nuclear fuel purchases 49.1.1.1.3 Commitments for purchases of nuclear fuel arise from supply contracts for the nuclear plants intended to cover the EDF group’s needs for uranium and fluoration, enrichment and fuel assembly production services.

Gas purchases and related services 49.1.1.1.4 Gas purchase commitments are principally undertaken by Edison and EDF. The volumes concerned for both entities at 31 December 2019 are as follows:

31/12/2019

31/12/2018

Maturity

Total

< 1 year

1-5 years

> 5 years

Total

(in billions of m 3 )

Edison

135

12

44

79 16

140

EDF

24

2

6

22

Gas purchase contracts Edison has entered into agreements to import natural gas from Russia, Libya, Algeria and Qatar, for a total maximum volume of 12.4 billion m 3 per year. The residual terms of these contracts vary between 1 and 15 years. The contract with Algeria was renewed in 2019 for 1 billion m 3 per year until 2027. The long-term contract for gas from Russia terminated in 2019 and Edison signed a new contract for 1 billion m 3 per year for 2020. EDF has entered into an import contract for LNG from the United States, concerning an annual supply of 0.7 million tonnes of LNG (1 billion m 3 of natural gas per year) for a 20-year period beginning in May 2020.

Gas-related service contracts Under the contract with Terminale GNL Adriatico, Edison also benefits from approximately 80% of the terminal’s regasification capacities until 2034. Under the contract with the Dunkerque LNG methane terminal, EDF benefits from approximately 61% of the terminal’s regasification capacities until 2037, in return for payment of an annual premium of approximately €150 million. A provision for onerous contracts has been recorded in connection with this contract. Other commitments and risks Edison has recently signed two significant purchase contracts for gas from Azerbaijan (1 billion m 3 per year), with deliveries scheduled to start in 2021, and LNG from the United States (1 million tonnes per year), with deliveries scheduled to start in 2023.

49.1.1.2 Operating contract performance commitments given At 31 December 2019, these commitments mature as follows:

31/12/2019

31/12/2018

Maturity

Total

< 1 year

1-5 years

> 5 years

Total

(in millions of euros)

Operating guarantees given

7,349 7,594

2,243 4,100

2,133 2,717

2,973

7,047 6,898

Operating purchase commitments  (1) Other operating commitments OPERATING CONTRACT PERFORMANCE COMMITMENTS GIVEN  (2)

777

305

82

131

92

172

15,248

6,425

4,981

3,842

14,117

Excluding fuel and energy. (1) Including commitments given by controlled entities to joint ventures, amounting to €1,019 million at 31 December 2019 (€982 million at 31 December 2018). (2)

Operating guarantees given 49.1.1.2.1 Operating guarantees given are as follows:

In the course of its business, the Group provides contract performance guarantees, generally through the intermediary of banks. Operating guarantees given at 31 December 2019 mainly consist of guarantees given by EDF, Edison and EDF Renewables in connection with its development projects.

31/12/2019

31/12/2018

(in millions of euros)

EDF

2,081 1,612 1,319

2,038 1,677 1,262

EDF Renewables

Edison

EDF Energy Framatome Other entities

912 552 873

795 517 758

TOTAL

7,349

7,047

383

EDF | Universal registration document 2019