Updates: last update's detail


RTE's results 2003.

Source: RTE 16/03/2004

RTE's results for 2003 are above target. Our turnover has grown strongly and net income has almost tripled. This has enabled us to continue our debt reduction programme.

For RTE, the financial year 2003 was marked by a number of achievements: our financial performances registered a clear improvement, above objectives, with turnover growing strongly; net income reached levels almost three times higher than those recorded in 2002; the economic rate of return rose to 7.1%; and debt was reduced by 470M. These results are explained by the substantial improvement in productivity, which has risen by 5% per year on average over the last three years.

Net income has almost tripled?
At the end of the financial year 2003, net income after tax amounted to 276M, compared with 105M in 2002. Without RTE's portion (27.1%) of the tax arrears attributed to EDF by the European Commission on 16th December 2003, the company's net income after tax would have stood at 333M.

?due to RTE's improved productivity
The productivity gains achieved by RTE are largely thanks to developments in the cost of transmission per kWh which, over the period 2000-2003, fell by an average of 5% per year.
A 3% saving on purchases linked to core business.
The opening of the markets to new suppliers is beginning to bear fruit: it has resulted in a 3% drop in purchases linked to RTE's core business

?completed by a significant rise in its turnover
In 2003, RTE's turnover amounted to 4,035M, compared with a figure of 3,657M in 2002 (1). There are several reasons for this increase of 378M:
- network access tariffs were applied to the entire year 2003, thereby generating 196M in extra income compared with 2002
- growth in extractions represents 98M of the extra income. This increase is partly due to the sharply contrasting climatic conditions experienced in 2003 (cold snap, heatwave in the summer), after a particularly mild 2002
- at the same time, income linked to instances where the subscribed power level is exceeded rose by 80M

?and stabilised operating costs
Operating costs in 2003 reached 3,247M, compared with 3,220M in 2002.
-purchases linked to the operation of the electrical system, at 804M in 2003, rose by 60M
-other operating costs (purchases of goods and services, etc.) fell by 87M to 868M (955M in 2002), thereby offsetting the rise in personnel costs, taxes and levies

RTE's finances currently look healthy, enabling the company to continue its debt reduction programme
-Cash-flow increased from 861M in 2002 to 936M in 2003, reflecting the rise in income
-Investments amounted to 535M, within the budget authorised by CRE (547M). This figure is down on 2002 (616M)
-Working capital requirements fell by 478M, having previously risen by 82M in 2002
-In 2003, RTE paid the French State a dividend of 61M based on 2002 results
-As a result, long-term debt has been reduced by 470M (99M in 2002). The debt-to-equity ratio fell from 2.07 at the end of 2002, to 1.87 at the end of 2003

The economic and financial rates of return have improved
The economic rate of return improved significantly: it now stands at around 7.1%, compared with just 4.4% in 2002. Corrected for climatic contingencies, it works out at 6.2%, in line with the 6.5% set by the regulator for fixing tariff levels.
The financial rate of return reached 7.2%, compared with 2.9% in 2002.

(1) The published turnover for 2002 is 3,740 M. For analytical purposes, it is corrected to take account of income from the balancing mechanism (83 M), which does not appear in turnover for 2003.

Press kit.

Press Contacts:
M.DERDEVET: +33 (0)141 021 973 / +33 (0)682 594 587
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