However, coal- and oil-fired plants represent less than a fifth of EDF’s generating capacity. The majority of EDF’s contributions to a cleaner tomorrow originate from alternative power sources. Hydroelectric represents 16% of the company’s power generating capacity or about 22 gigawatts. Renewable technologies provide another 5.6 gigawatts. Nuclear power technologies are EDF’s key to the carbon-free world.
|St. Laurent des Eaux|
Just the same the company's experience in the U.S. is swiftly coming to a close. In July 2013, EDF announced an agreement with its partner Exelon (EXE: NYSE) to pull out of their joint venture called Constellation Energy Nuclear Group (CENG) by the year 2013. The venture operates five nuclear plants in the United States with a total capacity of 3.9 gigawatts. EDF is exercising a put option that allows EDF to sell CENG to Exelon at the fair value of its stake over a four year period beginning January 2016. EDF will also receive an exceptional dividend estimated at $400 million from CENG. EDF cited economic realities as its motivation in exiting the U.S. market. The move suggests that some of the smartest nuclear operators in the world do not expect to see a reversal of the economic circumstances in the U.S. that favor natural gas.
Among electric utilities, EDF International represents one of the closest to a pure play on nuclear power generation. Sales totaled 72.7 billion euros in the year 2012, providing 16.1 billion in EBITDA. The current year 2013, appears to be off to a good start with revenue at 39.7 billion euros and a 10.7% year-over-year growth rate. It is also notable that the EBITDA margin improved to 24.4% in the first half of the year 2013, compared to 22.2% in the year 2013.