EDF: Q1 2013 sales – Good performance, as expected triggered by cold weather
SELL, Fair Value EUR12 (-29%)
On Tuesday evening, EDF released good though unsurprising Q1 2013 sales which increased 12.1% y/y and 4.7% organically. This was helped by the cold weather in France and the UK, as well as an excellent UK nuclear output. All 2013 targets were reaffirmed but the group points out that EBITDA growth will be H2-loaded, implying the good Q1 trends will not pass through into the P&L. We are disappointed the EBITDA target of Edison was reiterated for FY13 (EUR500m) despite the +EUR300m impact on EBITDA of the announced renegotiation of the Sonatrach gas contract.
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