EDF
Trading Annual Review 2008
In 2008, EDF Trading
expanded its business
platform, delivered
a strong performance
for the EDF Group
and increased
activities across
the energy markets.
Contents
INTRODUCTION
Introductory statement
01
EDF Group profile
04
EDF Trading, Chairman’s statement
05
EDF Trading profile
07
EDF Trading, Chief Executive’s statement
08
OUR MARKETS
Electricity 12
Gas 16
Carbon emissions 20
Coal 24
Freight 26
Renewable fuels 30
Derivatives 32
Eagle Energy 34
OUR APPROACH
Expertise
40
Business development and risk management services
43
IT
44
Risk management
47
Transmission and regulation
50
Ghana charity project
52
Financial Information
Financial details summary
56
EDF Trading profit and loss summary
57
EDF Trading balance sheet summary
57
The Executive team
58
Introduction
As an integral part of the
EDF Group, EDF Trading
has expanded its business
across the wholesale
energy markets in Europe,
North America and Asia.
Being active in all of the
major commodity sectors
and with our asset-backed
business model, we are
well placed to support the
EDF Group and our third
party counterparts.
1
Introduction
2
3
Introduction
EDF Group
Profile
Within Europe, the EDF Group is the
largest generator of electricity and has
power plants in Belgium, France,
Germany, Hungary, Italy, Poland, Spain,
Switzerland and the UK. It is also one of
the most committed operators to all forms
of renewable energies with significant
interests in hydro, wind and solar power
generation. The EDF Group is the world’s
premier operator of nuclear power stations
and is taking a leading role in global
nuclear renaissance.
Globally, the Group employs more than
158,000 people and has over 38 million
end-user customers.
Developing from its European base, the
EDF Group is strategically expanding in
global markets. It is present in Laos and
Vietnam, and is one of the largest foreign
investors in electricity production in China
where it has technology partnerships in
nuclear, thermal and hydro generation.
It has nuclear power generation interests
in South Africa. In North America through
its subsidiaries, EDF owns significant
volumes of renewable energy and wind
generation. It is also seeking to develop
nuclear power generation.
4
The EDF Group
is a leader in
the European
energy industry,
a growing force
in the world energy
market and the
world’s leading
nuclear operator.
It is active in all
areas of the energy
value chain including
generation,
transmission,
distribution,
supply and
trading.
Introduction
EDF Trading
Chairman’s statement
“ EDF Trading’s support in
optimising Group assets is an
important factor in our planning
and implementation of new
initiatives and strategies.”
“The contribution of EDF Trading to the
EDF Group’s performance and development
continues to prove invaluable. In 2008,
EDF Trading delivered strong results in
optimising Group assets and providing
sound risk management services.
Throughout the year EDF Trading
successfully undertook a number of
initiatives to enhance Group strategies and
performance. In the USA, EDF Trading‘s
acquisition of Eagle Energy complements
the Group’s nuclear power joint venture
with Constellation. Its acquisition of a share
in an Australian coal mine helps secure
supplies for Group power generation
businesses. And EDF Trading currently has
more than 100 CDM projects underway
alongside the Group carbon fund. These
are in addition to EDF Trading’s role as our
interface to the wholesale energy markets,
its optimisation of the Group’s gas portfolio
and its responsibility for EDF Energy’s
wholesale trading business.
Within a market of considerable volatility,
and with the on-going energy challenge,
EDF Trading remains at the heart of the EDF
Group providing the essential wholesale
market interface which will maximise the
value of EDF Group’s investments.
I am confident that EDF Trading will
continue to make a strong contribution
to the Group’s performance.”
Jean-Louis Mathias
Chairman, EDF Trading Board
Chief Operating Officer, EDF SA
5
Introduction
6
Introduction
EDF Trading
Profile
Based upon a distinctive
asset-based, multi-commodity,
physical and financial business
model, EDF Trading is a leader
in the international wholesale
energy markets.
In an environment where most aspects of
the energy markets are becoming global,
and with commodity risk management
becoming more prominent, EDF Trading
plays a pivotal role within the EDF Group.
As the Group’s interface to the wholesale
energy markets we optimise the value of
assets owned and operated by EDF Group
businesses.
EDF Trading has its own extensive portfolio
of upstream and midstream assets. These,
combined with assets owned by Group
businesses, support our ability to service
the EDF Group and our counterparts
through sourcing, supplying, transporting,
storing, blending and converting
commodities.
Our broad platform capabilities encompass
all the energy commodities including gas,
power, coal, freight, oil, carbon emissions
and renewable fuels. Equally, we are
expanding our geographic breadth and in
2008, acquired assets in the USA and
Australia as well as being active through
the Middle and Far East.
Such a well balanced yet dynamic business
model sets EDF Trading apart from other
energy businesses. Having assets and
capabilities throughout the energy supply
chain empowers us to be highly
competitive in our pricing, innovative in our
transactions and to more effectively
manage the complexities of risk exposure.
Underpinning all EDF Trading activities is an
entrepreneurial culture founded in
operational excellence and rigorous risk
management. We trade from a position of
financial stability having been consistently
profitable since our inception in 1999 and
we have our own Moody’s A3 credit rating.
7
Introduction
EDF Trading
Chief Executive’s statement
“ Throughout a period of such
high activity and achievement
the performance of our
employees has been consistently
outstanding. Without doubt,
it is the skills and determination
of our people along with the
commitment of the wider
Group to our activities, that
make EDF Trading the success
that it is.”
“In 2008, EDF Trading expanded its
business platform, delivered a strong
performance for the EDF Group and
increased activities across the energy
markets.
The past 12 months has seen many
changes affecting our marketplace,
including the exit of some participants.
Within this, EDF Trading’s robust business
model and our important role for the
EDF Group have enabled us to continue
expanding our activities and developing
a global platform for the EDF Group.
8
In the USA, our acquisition of Eagle Energy
will provide a multi-commodity wholesale
energy trading hub to support asset
optimisation for the EDF Group in the
North American market. Similarly, in
Australia, our purchase of a stake in the
Narrabri coal mine will help with long term
security of supply for EDF Group power
generation businesses.
Within the European market, we expanded
our gas optimisation services for the EDF
Group, we increased our gas storage
facilities and also assumed responsibility
for EDF Energy’s wholesale trading
business. In Asia, our close relationship
with Chubu has enabled our joint venture,
Chubu Energy Trading, to supply a
significant amount of coal to the Hekinan
power station on favourable terms.
Operationally, in our role as the wholesale
market interface for the EDF Group, we
have continued to work closely with the
Group to facilitate increased wholesale
market access for Group companies.
Equally, we have provided risk management
assistance to Group companies and also
given transactional support for important
Group initiatives such as a power plant
construction in the Netherlands and
a salt cavern storage project in Germany.
As we look forward through 2009, we
will consolidate and develop our existing
business to continue to provide essential
support to the EDF Group and our third
party counterparts.”
John Rittenhouse
Chief Executive, EDF Trading
Introduction
9
Our Markets
10
11
Our Markets
Electricity
Overview
EDF Trading is
one of the largest
participants
in the European
electricity market
and is the exclusive
interface to the
wholesale energy
markets for EDF.
79 AUCTIONS
Physical transmission rights
obtained from participation
in 79 auctions.
Oslo
Office opened for
business in June 2008.
NORTH AMERICA
Eagle Energy acquired in October 2008.
12
Our Markets
Electricity
Overview
In 2008, we opened the EDF Trading office
in Oslo to further enhance our European
activities. Our Nordic team provides
origination and trading services with a
particular emphasis on structured
transactions involving hydroelectric power
generation. The Nordic power grid connects
to other European grids including Germany,
the Netherlands, Poland and Russia and
therefore having access to it is of major
importance to our business in these regions.
Throughout the year our dedicated team
continued to build our presence in Central
and Eastern Europe and we have
implemented a number of initiatives in
Poland. We also have teams dedicated
to the Iberian and Italian markets.
In the UK, EDF Trading became the primary
interface to the wholesale energy markets
for EDF Energy.
Additionally in 2008, we secured
transmission rights with many
interconnectors across the continent.
Case study
The Energy Management Centre
Through our
interaction with
EDF Energy in the
Energy Management
Centre we integrate
the specialised skills
of both businesses
to optimise EDF
Energy’s power
generation assets.
EDF Trading and EDF Energy have been
working closely together to identify and
exploit the synergies in their wholesale
energy market activities.
The Energy Management Centre is
responsible for the short term optimisation
and despatch of EDF Energy’s generation
assets. As such it manages the 4,790 MW
of capacity generated by EDF Energy’s UK
power stations in Cottam, West Burton and
Sutton Bridge. Equally, it has a full physical
view of the marketplace through real time
communications with all power production
plants in the UK.
With a team monitoring activity across
the UK grid 24 hours a day every day of
the year, the Energy Management Centre
has an immediate awareness of events
within the physical market and can interact
with EDF Trading’s power and gas desks
to optimise the commercial potential.
Within this context, EDF Energy’s
Energy Management Centre is now
located on EDF Trading’s main trading
floor in London. This facilitates closer
co-operation between the two businesses
and creates seamless integration between
the technical and commercial aspects of
the Group’s UK power generation activities.
We are ideally positioned to provide the
products and services fundamental to the
optimisation of all European EDF Group
companies. Our access to the wholesale
markets, experience and analytical skills
help secure the supply of electricity for
Group customers, hedge the Group’s
market risks and maximise the value of
Group assets.
We also transact with a wide range of
counterparts including other utilities, large
commodity consumers, investment banks,
trading houses and oil companies.
2008 also saw EDF Trading acquire Eagle
Energy, a significant participant in the North
American power and gas markets and a
leading asset management provider for
power generators in the United States.
13
Our Markets
Electricity
Case study
The Energy Management Centre
14
Our Markets
15
Our Markets
Gas
Overview
As one of Europe’s
largest participants
in the wholesale
natural gas market,
EDF Trading supports
the EDF Group’s
growing gas business
including its gas-fired
generation resources
and pan-European
portfolio of end-user
gas customers.
16
Our Markets
Gas
Overview
We are the exclusive interface
to the wholesale gas markets
for EDF in France and for
EDF Energy in the UK. As such,
we manage the full spectrum
of gas requirements for
both companies including
supply, storage, hedging
and asset optimisation.
Gas markets
Countries where EDF Trading is
currently transacting, has transacted,
or is pursuing opportunities.
Europe
Austria, Belgium, Czech, Denmark,
France, Germany, Hungary, Ireland,
Italy, Netherlands, Norway, Poland
Slovakia, Spain, Switzerland, UK.
Canada
USA
Egypt
Trinidad
Qatar Abu Dhabi
Oman
Japan
China
India
Nigeria
Australia
17
Our Markets
Gas
Overview
In Europe, we transact on the principal
hubs of Belgium, France, Holland and the
UK, and are active in the developing hubs
of Austria, the Czech Republic, Germany,
Ireland, Italy, Spain and Switzerland. We
also trade in the USA.
During a turbulent year in the markets,
EDF Trading’s asset backed model and
robust risk management procedures
provided a stable platform for continued
development. Our ability to transact across
all markets and to offer customised
products providing complete solutions
gave us a distinct advantage. During 2008,
we were one of the most active participants
across the gas market with the widest
geographic spread.
Among the significant developments
in 2008, EDF Trading completed the
acquisition of Eagle Energy, which is a
leader in the North American wholesale
natural gas markets.
During the year we also finished the third
stage expansion of our Hole House
salt-cavity gas storage facility in Cheshire,
England. Fourth stage development is
currently underway and, when completed
in 2009, will significantly increase capacity.
Looking to the future, EDF Trading will be
closely involved in supplying a gas-fired
combined cycle power plant in the
Netherlands currently being developed
by EDF in France.
4 YEAR
CONTRACT
LNG terminal capacity contract in US.
GEOGRAPHIC
FOOTPRINT
Transact in over 23 countries.
NORTH AMERICA
Eagle Energy acquired in October 2008.
18
LNG
Liquefied Natural Gas (LNG) provides gas
sourcing diversification and is of growing
importance to security of supply for EDF
Group companies.
We have grown LNG trading alongside our
pipeline business and work the two closely
together. This enables us to capture market
opportunities quickly and in a co-ordinated
manner, thereby enhancing both the stability
of supply and optimisation of assets.
In Europe, the EDF Group has significant
midstream positions with re-gasification
capacity in terminals at Rovigo and
Fos-Cavaou in addition to EDF Trading’s
capacity at the Montoir LNG terminal and
Zeebrugge.
During the year, we extended our contract
at the Montoir terminal in anticipation of
deliveries commencing in April 2009 from
the EDF Group’s LNG supply contracts.
We also increased our capacity at the
Zeebrugge terminal, in relation to our
LNG supply contracts.
Gas is becoming a global trading business.
In addition to our extensive European
activities, we increased our access to the
USA LNG market by means of an agreement
that gives us optional capacity at a terminal
in Freeport, Texas, in exchange for optional
access to our European facilities. Such an
agreement creates flexibility to offer
producers opportunities to capitalise on
global pricing variations.
In 2008, working with the EDF Trading
freight team, we chartered our first LNG
tanker to transport LNG from Zeebrugge
to India.
Our Markets
Gas
Case study
Upstream assets
With its management
of the output from
three EDF North
Sea gas fields, EDF
Trading is employing
its proven expertise
to directly support
EDF Group companies.
The EDF Group is diversifying its gas
portfolio to include upstream assets as a
means of securing supply for its power
generation activities and end-user
customers. In 2008, EDF acquired a stake
in three North Sea gas fields and appointed
EDF Trading to manage the gas output.
The appointment is a natural extension of
EDF Trading’s gas capabilities. We already
have purchase agreements from other
North Sea gas fields in our portfolio and are
one of the leading participants in the
European wholesale gas markets.
Garrow Platform
The three gas fields all flow from unmanned
platforms and the gas is exported by
pipeline to the UK’s Bacton terminal. From
Bacton it can be exported into either the UK
grid or via the cross channel interconnector
to Belgium. The fields have significant
potential for future production enhancement
and it is expected that up to five new wells
will be brought on-stream in the coming
years.
With the clear convergence of power and
gas in the energy commodities markets,
this investment adds diversity to the EDF
Group portfolio.
Wenlock Platform
Garrow Platform
Kilmar Platform during drilling operations
19
Our Markets
Carbon emissions
Overview
EDF Trading’s
carbon team is
responsible for the
execution of EDF
and EDF Energy’s
CO2 requirements.
We are one of the top three market
participants in European emission
allowances (EUA) and certified
emission reduction (CER) credits which
is essential in helping the EDF Group
meet its compliance obligations within
the EU emissions trading scheme.
€300M
Management of EDF
Group’s Carbon Fund.
OVER 100
Projects
Developments
in 15 countries.
20
Our Markets
Carbon emissions
Overview
The EDF Group has by far the lowest
carbon emissions of any of the major
European energy producers. In fact around
95% of EDF’s generation activities in France
do not emit any CO2. With the potential to
further reduce emissions being extremely
limited, support for Clean Development
Mechanism (CDM) emission reduction
projects is a cost effective solution for
off-setting the Group’s carbon impact.
As the wholesale market interface for
the EDF Group we have built extensive
knowledge of the CDM market and
expanded our involvement along key areas
of the value chain. With the experience of
having sourced reliable CDM projects in
over 15 countries, our expertise includes
an in-depth knowledge of the UN’s
approval process and the delivery risk
inherent to every CDM project.
Working with project developers, we have
applied our expertise to assist in the staged
process that requires project validation
by the host country, by a UN appointed
organisation and by the UN itself. Currently,
we are involved in more than 100 projects
in 15 countries. During 2008, we expanded
the geographic diversity of the portfolio to
include activities in Thailand, Vietnam,
Indonesia and the Philippines.
This, together with our strong trading
capability, enables us to optimise the
EDF Group’s carbon position. We are also
able to propose attractive carbon products
to large industrial concerns and end-user
organisations as a means of helping them
manage the risk and derive value from their
carbon positions.
2008 saw an increase of our global
activities, which included eight trades
completed with Japanese counterparts.
21
Our Markets
22
Our Markets
Carbon emissions
Case study
Shandong CDM project
The Shandong
Gaotang 30MW
biomass CDM project
offers benefits for
all. It is good for the
reduction of global
warming, it enables
local farmers to
derive benefit from
waste materials and
it will deliver power
to the Chinese grid.
CHINA
GAOTANG
SHANDONG
Province
EAST
CHINA SEA
Rice husk, one of the commodities used in
the Shandong biomass power plant
The Shandong project is one of China’s
pioneering biomass projects. Located in
Gaotang County in Shandong Province,
it will see the development of a 30MW
biomass power generation plant in
conjunction with National Bio Energy,
one of the largest companies of its type
in China.
The boiler for the plant will be supplied
by the Danish BWE Company, which is
a world leader in biomass and biomass
cogeneration boilers. When complete, it is
estimated that the plant will deliver 145,000
MWh/y of electricity to the North China grid
and consume around 121,000 tons of
biomass each year.
Gaotang County, a major agricultural
base in the north west of Shandong, has
a thriving farming community producing
rice and cotton crops. Traditionally, the
rice husks and cotton stalks have been
disposed of as waste following processing
of the crops. However, with the introduction
of the biomass power plant, the waste
materials can be sold and used as fuel for
generating electricity.
23
Our Markets
Coal
Overview
EDF Trading
offers EDF Group
companies and
other wholesale
coal consumers an
integrated supply
chain management
capability from the
load port all the way
through to the power
plant gate.
24
Our Markets
Coal
Overview
With multiple sources of coal supply
worldwide and the ability to ship, store,
blend and deliver coal, EDF Trading is
one of the major participants in the
global coal markets.
In 2008, we imported approximately
30 million tonnes of physical coal making
us the largest coal importer into Europe.
Reflecting this, our assets include a fleet
of vessels, coal terminals and inland
logistics, railcars and we have long-term
off-take contracts with major coal
producers around the world.
Such capabilities are a critical factor in
ensuring the stability and cost effectiveness
of coal supplies to EDF Group power
generation companies. We are the exclusive
supplier of coal to EDF in France and we
have long-term supply agreements with
EDF Energy in the UK. EDF Trading also
has long-term supply contracts with other
major European utilities.
Case study
Chubu Energy Trading
EDF Trading is honoured to partner
with Chubu Electric Power Company
in the operation of Chubu Energy
Trading. The bringing together of two
highly successful business models has
enabled CHUBU energy trading to be well
positioned in the Asian Energy market.
Chubu Electric Power Company serves
an area of approximately 39,000 square
kilometres in middle Japan. The region is
home to around 16 million people and is
one of the country’s leading manufacturing
centres. Chubu’s Hekinan coal-fired power
station is the largest of its type in Japan
and one of the largest in the world.
Among the highlights of 2008 was our
acquisition of a stake in the Narrabri coal
joint venture in Australia. This investment
includes a coal off-take contract for in
excess of 50 million tonnes over the life of
the mine. Production is due to commence
in 2009.
Based in Nagoya, Japan, Chubu Energy
Trading integrates Chubu’s procurement
skills with EDF Trading’s coal and freight
trading, risk management and IT expertise.
The partnership brings together two highly
successful business models.
Chubu’s Hekinan coal-fired power station
Our Chubu Energy Trading coal and freight
joint venture with Japan’s Chubu Electric
Power Company is now fully operational
and successfully delivering significant
volumes of coal to the Hekinan power plant.
Following a successful first year, there
is considerable potential for activities to
be extended to other energy markets in
the future.
For more information on
Chubu Energy Trading, please visit:
www.chubuet.com
In 2008, we also procured port capacity
on the east coast of the USA.
We successully integrated into our
business the three Amsterdam coal
terminals acquired in 2007. In addition
to strengthening our supply chain
management capabilities, the business
now handles significantly increased
throughput volumes.
With a tightening supply/demand balance
in the global coal market, security of supply
and cost competitiveness is a critical factor
in Chubu’s commitment to providing its
customers with superior low cost services.
In such an environment, a partnership
between Chubu and EDF Trading was
established in December 2007. Known
as Chubu Energy Trading, the aim of the
partnership is to employ world class
standards of coal procurement, risk
management and commercial optimisation
to secure a cost effective supply to the
Hekinan station.
Chubu Energy Trading’s trading Floor
Additionally, during 2008, in the
Amsterdam, Rotterdam and Antwerp
market we purchased a fourth floating
crane and opened a dedicated Rotterdam
office providing third party inland barge,
railcar and freight logistics.
30 Million
Tonnes of coal physically
delivered in Europe.
11.4 MILLION
Tonnes handled by Amsterdam terminals.
US Coal Business
Development of US coal business
through Eagle Energy.
25
Our Markets
Freight
Overview
The link between
our freight team
with its fleet of
dry-bulk carriers
and our coal team
is instrumental in
securing the stability
and cost effective
supply of coal
to EDF Group
companies.
26
Our Markets
Freight
Overview
EDF Trading’s
dry-bulk fleet is one
of the most modern
in the market with
an average age of
just 5.6 years. We
are joint owners of
two capesize vessels
currently under
construction and
have a significant
number of other
vessels on long
term charter. the
mix within the fleet
of capesize and
panamax vessels is
ideally matched to
handle EDF Trading’s
typical coal
shipment volumes.
Having our own
fleet enables EDF
Trading to control
the entire logistics
chain and is the most
cost effective means
of transporting
coal. Approximately
50% of our fleet
capacity is taken
by EDF Group
businesses.
Vessel ‘Cape Garland’
27
Our Markets
Freight
Overview
Our freight team works closely to advise
and support other EDF Trading desks,
particularly the coal desk, and EDF Group
companies on managing their freight
exposure. The freight requirement is met
by our own time-charter tonnage and our
freight risk is managed through the freight
derivatives market or, in exceptional
circumstances, by voyage charter from
third party ship owners. In this way the
freight team creates the freight hedge
which, for the coal team, enables them
to negotiate supply contracts and take
positions safe in the knowledge that freight
capacity is available at fixed levels.
During the year the freight team helped the
EDF Trading LNG team complete its first
deal of its type by chartering an LNG ship
to deliver LNG from Zeebrugge to India.
2008 saw unprecedented price volatility
as global seaborne demand slowed, which
resulted in a number of participants exiting
the market. Looking forward, the strength
and credibility of EDF Trading provides a
solid foundation for us to increase our
share of the freight market.
Over 30
dry-bulk
Carriers in operation.
50%
of fleet capacity is taken
by EDF Group businesses.
28
Case study
Vessel ownership
EDF Trading
transports very
large amounts of
coal for EDF Group
power generation
businesses. Vessel
ownership not only
enhances logistical
control, but is
also the most cost
effective way to
manage freight
exposure.
In a significant joint venture deal,
EDF Trading has contracted to build
a capesize vessel in Japan.
The capesize vessel is a 180,000 dwt
bulker and is scheduled for delivery
in 2011. Capesize volumes account for
approximately 80% of EDF Trading’s
cargoes and this new vessel ideally fits
with our existing time charter fleet of
capesize and panamax vessels.
Entering into joint venture ownership
reflects and will enhance EDF Trading’s
increasing levels of activity in the Far East
freight and coal markets. In 2007, we
established the Chubu Energy Trading
joint venture coal business with Japan’s
Chubu Electric Power Company, and in
2008, acquired an interest in the Australian
Narrabri coal joint venture. Coal is also
sourced from South Africa, Columbia,
Indonesia, USA and Russia for shipment
to EDF Group company power generation
assets.
Vessel ‘Sakuragawa’
Our Markets
29
Our Markets
Renewable fuels
Overview
EDF Trading’s
growing presence
in the renewable
fuels market not
only presents
cross-business
opportunities,
but also offers
synergies with
many other
EDF Group
companies
and activities.
30
Our Markets
Renewable fuels
Overview
We supply biomass materials and provide
logistical and technical support to the
EDF Group and other coal-fired power
generation companies wishing to take
advantage of the environmental and
economic benefits of co-firing.
Co-firing is a valuable tool for power
generators to achieve their environmental
sustainability objectives and is linked to
the value of carbon emission allowances.
Our knowledge of the market is therefore
directly beneficial to EDF Trading’s
emissions and CDM project teams. Equally,
our biomass trading is complementary to
and benefits from EDF Trading’s position in
the global coal and freight markets.
From a wider perspective, our biomass
expertise supports the EDF Group’s
renewable energies strategy. As such, we
are working closely with Group companies
to consolidate biomass procurement
and develop biomass related business
opportunities. For instance, we are working
with EDF Polska to help it meet its biomass
ambitions and we also supply biomass to
EDF Energy in the UK for its two co-fired
stations.
Notable in 2008 was a unique deal we
reached with a third party power generation
station in the UK in which we will be
receiving Renewable Obligation Certificates
(ROCs) while supplying biomass for its
planned three new stations.
In the UK, within the ROCs system, the
use of purpose grown energy crops are
attributed greater value than biomass.
Reflecting this, we are partnering with an
agri-business to explore the efficiencies,
sustainability, logistics and economics
of large scale energy crop production.
Similarly, we are working with the EDF
Trading carbon team to develop energy
crop production projects such as farming
miscanthus in South America.
Case study
Energy crops
With the expected increase in biomass
demand, the development of energy crops
on a sustainable, environmental and
commercial footing will be instrumental in
the growth of our renewable fuels business.
Different from traditional biomass products,
an energy crop is one that has been grown
specifically for the purpose of being used
as fuel.
In the UK, from April 2009, the rules
regarding Renewable Obligation
Certificates (ROCs) change. For co-fired
and dedicated biomass stations the
ROC/MWh allowance will be greater for
using energy crops rather than other
biomass types. Similarly, from 2010, the
co-firing of energy crops will not be subject
to the cap on the number of co-fired
ROCs a supplier is allowed to use to
fulfil its obligation.
One solution to the need for energy
crops, currently under investigation by
EDF Trading, is the farming of miscanthus
(often referred to as elephant grass) in
South America.
Miscanthus Crop
Miscanthus is an environmentally friendly,
annually harvested, perennial crop. It is
carbon neutral in that it absorbs and stores
carbon dioxide while growing. Fertiliser
demands are low and it provides a habitat
that encourages a greater diversity of
species compared with cereals. From the
farmer’s perspective, miscanthus can be
planted, maintained and harvested using
conventional agricultural machinery. It can
be grown on existing low productivity
agricultural land thus providing no
motivation for land clearance or harm
to the rainforests.
31
Our Markets
Derivatives
EDF Trading
helps EDF Group
companies optimise
their assets and
manage market
exposure by
actively trading
electricity, gas,
coal, oil and other
energy related
derivatives.
32
Our Markets
Derivatives
Overview
The primary goal of our derivatives team
is the management of complex market
risks through the development and risk
management of derivative products across
multiple commodity markets. Our activities
encompass valuation and hedging along
with structuring and product development
with regard to the needs of EDF Group
businesses.
Oil
Underpinning our activities is the
continuous in-house development of
bespoke derivatives trading technologies.
Quantitative trading strategies are used to
help us evaluate opportunities in a wide
range of complementary markets. We then
pursue those opportunities to produce
consistent and diversified revenue streams.
Essential to the success of our derivatives
trading is the work of our quantitative
analysts and developers who provide
analytical pricing and deal structuring
support. They develop models to analyse
the behaviour of different types of deal
structures such as fast-cycle gas storage
or pumped storage hydro.
EDF Trading helps to manage the
EDF Group’s oil exposure with respect
to its oil-fired power generation plants,
retail customer business and oil-indexed
gas procurement activities. Our oil team
is integrated within the day to day business
of hedging oil exposure for the EDF Group
globally. As such, we provide access to
market, timing and execution.
Weather
Weather derivatives are used to help
mitigate ambient temperature related risks
inherent in EDF Group activities as well as
for hedging weather risks for our market
counterparts.
33
Our Markets
Eagle Energy
34
Our Markets
35
Our Markets
Eagle Energy
Eagle Energy
enables us to
provide the EDF
Group with a North
American platform
and access to the
US energy markets.
The acquisition of Eagle Energy in 2008
represents an important opportunity for
EDF Trading to expand its activities and
support EDF Group developments in the
North American market.
Eagle Energy is one of the largest providers
of market services to the wholesale gas
and power sectors in the USA and Canada.
It has offices in Houston, Atlanta, Chicago,
Denver, Pittsburgh and Calgary.
Eagle optimises supply, transportation,
transmission, load and storage portfolios
on behalf of a growing base of wholesale
energy clients. Current activities include
balancing and matching customer supply
and demand, the optimisation of assets
for power generation, gas storage and
gas transportation, and the provision of
risk management products.
36
Griff Jones
Chief Executive
Philipp Bussenschutt
Origination and
Business Development
Eric Dennison
Legal
Matt Blake
Finance, Risk and
Accounting
Russell Schneider
Finance, Risk and
Accounting
Kurt Wissner
IT
Cody Moore
Power
Jeremy Davis
Gas
Our Markets
Eagle Energy
The North American energy market is highly
segmented and ranges from hundreds of
independent generators and exploration
companies through to very much larger
utilities and end users.
“We bring a stabilising force to the market
place,” says Griff Jones, Eagle’s CEO.
“We use the financial markets to hedge
the risk of our customers’ and our own
physical volumes.”
The strength of Eagle is such that since
its formation in 2003, it has developed
a large geographically diverse footprint
of assets and contract positions across
the USA and Canada. In natural gas, it
sells to over 225 end user organisations
and utilities. In power, it is one of the
premier asset management providers
for generators in the USA and currently
manages over 8,000 MW of generation
and in excess of 2,400 MW of peak load.
Having built its business in power and gas,
Eagle is already expanding into coal and
there are considerable future opportunities
in both LNG and renewable fuels. With
the market for most energy commodities
becoming ever more global, the potential
for Eagle as part of EDF Trading to support
EDF Group activities is clear to see.
37
Our Approach
38
39
Our Approach
Expertise
At the heart of EDF Trading’s
business strategy is our role
within the EDF Group in
maximising the value of its
large asset base. In order to
ensure efficient delivery of
the services we provide, we
rely on operational excellence,
outstanding IT and precise
legal, financial, market and
credit risk management.
These functions, together with our asset
optimisation, origination and trading
expertise, combine to provide a sustainable
foundation for our market activities.
Throughout EDF Trading, in every area of
activity, our employees are the positive
force behind the realisation of our strategy.
40
The pace and constant change of the
energy trading markets necessitates
innovative thinking at all levels and in every
facet of our business. As such, EDF Trading
people are encouraged to challenge
traditional ideas, test new approaches,
anticipate market developments and react
quickly to market opportunities. However,
energy trading also requires a rigorous risk
management and procedural framework.
The success of EDF Trading is based upon
a culture in which entrepreneurial spirit and
tight procedural control are supported by
appropriate technologies to create a single
cohesive unit.
Within EDF Trading, the focus is on
ensuring that we have the best skills in
every position. Reflecting the global nature
of the wholesale energy markets, we have
people from over 30 nationalities working
together as a team. Such diversity is our
strength and an important factor in our
continued business growth and profitability.
Our Approach
41
Our Approach
42
Our Approach
Business development and risk management services
Our origination team and group
integration and synergies team
provide EDF Group companies
and third parties with risk
management services, asset
optimisation services and
commercial knowledge of
the wholesale energy market.
The group integration and synergies team
manages our relationship and co-ordinates
business development with the EDF Group
and with individual Group companies. In
particular, it works to identify opportunities
in which the skills and resources of EDF
Trading can be applied to help meet the
business needs of Group companies.
Our origination team structures longer term
complex energy market transactions to
enhance and optimise the value of Group
and third party assets.
The two teams created the impetus to
integrate EDF Energy’s trading activities
with EDF Trading, commence management
of EDF’s upstream gas output and, through
the carbon fund, generate emission credits
for all the main EDF Group affiliates. They
also provide gas optimisation services for
the EDF Group and enable support for
EDF Polska with regard to biomass and
coal trading.
Recently, the teams were instrumental in
implementing long term tolling to a
gas-fired combined cycle power plant
being developed in the Netherlands.
EDF Group is a partial owner of the plant.
Similarly, they played a central role in the
2008 acquisition of Eagle Energy, which will
enhance Group access to the US energy
markets, and in the acquisition of a stake in
the Narrabri coal joint venture in Australia.
43
Our Approach
Bespoke IT
Bespoke IT systems and
a custom built technology
platform give EDF Trading
a competitive advantage.
IT has a critical role in providing
an operational foundation upon
which our business processes
and strategy depend.
Fundamental to the effectiveness of our
IT systems strategy is an intellectual
approach in which developments are
tailored specifically to the requirements
of the business. Central to this is an IT
governance structure ensuring that the
heads of business and support functions
have an effective channel to raise and
prioritise new and existing IT requirements.
Our approach ensures that IT developments
align directly with today’s business dynamic.
They also give us a competitive advantage
by incorporating the inherent scalability
necessary to speed our expansion into
new products, new markets and wider
geographies.
44
At the heart of our operations is the
in-house developed Global Energy
platform, which automates our activities
such as electronic and voice trade capture,
confirmations, invoicing and settlements.
The platform also provides one of the most
effective logistics systems in the industry
to support our physical trading activities.
Its design gives us functionality for critical
aspects such as scheduling of power and
gas, point to point communications for
nominations to the transmission system
operators, and for managing complex
logistics activities with shippers for
freight transportation.
Equally dynamic is our Bluebird platform.
Developed in-house, it enables the
valuation, position and risk management
of highly complex structured transactions.
Operating on dedicated hardware, Bluebird
provides an end-to-end solution for
modelling complex positions.
Our Approach
45
Our Approach
46
Our Approach
Risk management
The effectiveness of our
risk management procedures,
governed by attention to risk
issues at the highest level, forms
the foundation of our business.
EDF Trading’s commitment to managing
risk is such that our senior executives take
personal and direct responsibilty for risk
management.
The Risk Committee, which oversees all
aspects of market and operational risk
management, determines whether EDF
Trading is prepared to accept the risk
associated with new transactions and
activities. It also sets appropriate risk limits.
The Credit Committee members include
our Chief Executive, Chief Financial Officer,
General Counsel and Chief Operating
Officer. It oversees all aspects of credit risk
management, establishes credit policies
and approves credit limits for each
counterparty.
47
Our Approach
Risk management
Market Risk
Credit Risk
Capital Management
Fundamental to our market risk
control is the imposition of stop-loss
and Value-at-Risk (VaR) limits. These
tools are complemented by additional
techniques such as stress testing,
which assesses the profit and loss
impact of extreme movements in the
portfolio’s underlying variables.
EDF Trading has always placed
credit risk management at the
heart of its business activities.
The effective use of capital is a
fundamental consideration of the
Risk Committee when deciding
whether to enter into a new business
or structured transaction. As such,
we have established capital allocation
procedures to ensure that our capital
structure is sufficient to support the
various business units while maintaining
a strong investment grade profile.
At 31 December 2008, EDF Trading’s
overall VaR limit for its trading books
stood at €29.1 million (2007: €26 million).
Our credit risk management processes
have been proven effective in supporting
business activities during periods of
economic uncertainty and market
volatility. The processes are designed
to enable EDF Trading to react
prudently yet quickly to credit events
and are founded on a strong credit risk
culture built across all businesses.
EDF Trading works with the EDF Group
and its subsidiaries on the consolidation
of Group exposures and the development
and implementation of credit risk
management awareness and techniques.
Activities are directed, monitored and
managed by the Credit Committee. In
turn, credit risk management processes
are co-ordinated and managed by
the credit operations team. The team
works closely with all stakeholders
including front office, legal, finance,
market risk and market counterparts to
ensure effective support and control.
Our credit risk management activities
are based on five processes:
• Analysis and identification of the
credit and liquidity risk triggers.
• Qualitative and quantitative
assessment of all counterparties to
establish counterparty limits. These
limits are approved by our Credit
Committee, which evaluates the
proposals to ensure that the credit risk
management strategy is aligned to the
commercial and liquidity strategy.
• Daily measurement, monitoring
and management of all
counterparty exposures.
• Negotiation and implementation of
the credit support arrangements
and risk mitigation techniques
• Credit event planning to continuously
assess the processes and controls to
ensure effective credit risk management.
At a corporate level EDF Trading
supports the development of credit
risk management and mitigation
techniques across the energy sector.
In particular, we are active participants
in industry working groups involved
in the development of contractual
arrangements and clearing initiatives.
48
Capital allocation provides a consistent
method for measuring both the absolute
level and the change in the overall level
of risk within the business as well as
supporting the calculation of risk-adjusted
returns on capital. The methodology
is broadly based on the Basel Accord,
which includes the assessment of market,
credit and operational risk capital.
EDF Trading also includes a
capital provision against tangible
and intangible assets.
Liquidity Management
Liquidity management within
EDF Trading not only ensures that
sufficient cash is available to meet all
contractual commitments as they fall
due, but also that we have sufficient
funding to withstand stressed market
conditions or an extreme event.
The EDF Group supports our liquidity
management through the provision of letter
of credit facilities, medium term notes,
working capital facilities and a committed
back-up credit facility, undrawn of €500m.
Our Approach
Risk management
Trading Procedures
We trade under standard industry
agreements such as GTMA for UK
power, EFET for continental power,
ISDA for cash settled transactions,
and NBP97 and ZBT for gas.
While these agreements and terms
normally include netting and default
provisions, we have established
cross-commodity netting terms for
our major counterparts. This provides
netting benefits and also standardises
material adverse change and default
provisions. We also obtain collateral
against exposures where appropriate.
To provide an additional safeguard,
the EDF Trading legal team is involved
in every significant transaction. The
team contributes advice and guidance
to senior management on all business
issues and ensures that we act in a
manner commensurate with legal
and regulatory requirements.
Accounting Policies
EDF Trading uses mark-to-market
accounting for positions where there is an
observable traded market or fair values can
be estimated with reasonable certainty, in
accordance with UK accounting principles.
The overall valuation of the trading
portfolio includes an allowance for
credit and operational risks.
Operational Risk
Managing operational risk is an ongoing
priority. We continuously assess the
level of operational risk across all
business lines and implement measures
to mitigate areas of exposure.
Our business transaction procedures,
which govern the activities of all
employees, are regularly updated
to address operational risk. Central
to this is that procedures for gaining
authorisation for new business or trading
instruments must undergo a rigorous
operational authorisation process.
In the critical area of system outage risk,
we have established backup systems
and procedures to manage every degree
of incident ranging from short term
disruptions to full scale disaster recovery.
Operating procedures are documented
for each functional area and are
designed to prevent the occurrence of
operational errors. However, should an
error occur, we have early detection
mechanisms in place to enable prompt
implementation of corrective actions
and so minimise the impact.
The market prices used to value
EDF Trading’s positions take account
of the cost of closing out our net
trading position in the market.
Performance indicators are used
to monitor the effectiveness of key
operational processes and provide
assurance that the processes are
functioning effectively. The indicators are
reviewed monthly by individual business
managers and reported to the Chief
Executive, Chief Operating Officer and
Chief Financial Officer on a regular basis.
49
Our Approach
Transmission and regulation
The transmission and regulation
team works closely with the
EDF Group to help shape market
regulation across the liberalised
European energy market.
The transmission and regulation team
coordinates with the EDF Group to
manage its relationship with the European
Commission, with Europe’s national
regulators and with the gas and power
transmission companies. In particular,
we have been working closely with the
EDF Group on the 3rd energy package
aimed at establishing more effective,
integrated and efficient European
wholesale markets. We also work with
the European Federation of Energy
Traders to improve the conditions
of energy trading in Europe.
50
An important part of the team’s role is to
ensure that EDF Trading is fully compliant
with the rules and regulations governing
the European wholesale markets.
This includes making sure the correct
contractual agreements and licenses
are in place and regulatory requirements
are met so that EDF Trading is ready and
able to transact in new products and
markets as the opportunities arise.
Of significant importance is the team’s
involvement with our origination
and trading desks in respect of the
transmission auctions that enable us
to transact across borders. Auctions
are inherently complex and require the
input of many different EDF Trading
functions including legal, financial and
IT. The transmission and regulation team
essentially acts as a project manager in
such instances to ensure that all regulatory
requirements and contractual obligations
are in place for the successful acquisition
of transmission capacity. In 2008, EDF
Trading participated in 79 annual auctions
involving 20 countries and 26 national
borders and acquired approximately
16 TWh of physical transmission rights.
Our Approach
51
Our Approach
Ghana charity project
EDF Trading is proud to
support the TEST for Ghana
educational charity. Its aim
of providing Ghanaian based
scholarships to deserving
tertiary students will ultimately
benefit local communities
and the country as a whole.
GHANA
SOUTH
ATLANTIC
OCEAN
The origins of the TEST for Ghana charity
lie in a chance conversation between a
number of Oxford University alumni, one
of whom was independently sponsoring
young Ghanaians to attend Linacre College
at Oxford. It became clear that for the cost
of educating one person at Oxford a far
greater number of scholarships could be
offered for undergraduate education within
Ghana itself.
So it was that TEST (Tertiary Education
Scholarship Trust) for Ghana was formed.
Its aim is to provide funding to bright but
financially needy students looking to
continue or undertake new tertiary
education at Ghanaian institutions.
Scholarships are available to students at
all levels of tertiary education and across
subjects ranging from medicine, agriculture
and engineering to environment, business,
education and construction.
Currently, 128 scholarships have been
awarded to students studying at Ghanaian
universities and polytechnics. A mentoring
scheme involving present and past students
and tutors provides academic and personal
support to scholars during their studies and
in the early years of their professional lives.
On completion of their studies, recipients of
scholarships are required to remain in Ghana
for a minimum of five years to work for the
social and economic development of their
community and country.
TEST for Ghana is funded entirely by
charitable donations. Its accounting
principles are transparent and
administrative costs are kept to a
minimum, and borne by a special donor,
to ensure that 100% of donations are
dispensed for scholarships.
TEST for Ghana is part of TEST for Africa,
the fundraising arm for this project.
For more information, please visit
www.testforghana.com or
www.testforafrica.com.
52
Our Approach
Ghana charity project
A selection of Scholarship student profiles
Esther
Anima Duah
Kwame Nkrumah
University of
Science and
Technology,
BSc Land
Economy
Matilda Aseyoro
University for
Development
Studies, School of
Medical Sciences
Anthony Boadu
Kwame Nkrumah
University of
Science and
Technology,
Business
Administration
Patience
Maaldu
University for
Development
Studies,
Agricultural
Technology
Clement
Mensah
Kwame Nkrumah
University
of Science and
Technology,
BSc Development
Planning
“Ghana is a peace loving nation, but there are so many issues about land disputes that
need to be solved. With financial support I can complete my studies and become a land
economist. Then I will form an organisation that will enlighten people on land matters.
The organisation I want to set up will educate people on how to acquire land, the rightful
procedures involved and also how to dispense land. In the long run this will reduce land
disputes and so help create a more peaceful nation.”
“Following the death of my father, my mother shouldered all the responsibility for raising
the family and running our subsistence farm. The burden was too great and my aunt had
to come to her aid by adopting me as one of her children. Even so, my aunt is a primary
school teacher and her meagre salary made paying for my education a struggle.
Receiving a scholarship enables me to continue my studies. When I qualify, I want to use
my position as a medical doctor to further the cause of health care delivery and education
throughout the country.”
“I come from Sefwi Boako in the west of Ghana. The people in my village are not really
interested in education and just want to send their children to the farms. My father does
not have a regular income and last year he could only pay half of my school fees. This year
I had to borrow the money.
In my holidays I teach younger students in the village and try to convince them that
education will be better than peasant farming. With money from a grant I will finish my
studies and then help people in small villages like mine.”
“My father is a pensioner and my mother a small trader, so it is a struggle to get my school
fees paid every year. Members of my extended family help when they can to pay for my
hall fees and food. I hardly ever have money to buy the academic handouts, instead I get
the previous year’s handouts from friends ahead of me in their studies, but the curriculum
doesn’t always correspond.
If I can get the financial aid to finish my studies I want to teach people in Northern Ghana
how to develop the agricultural side of the economy.”
“If I qualify as a development planner my work will focus on the welfare of people
and improvement of the social system. Looking at the deteriorating nature of urban
settlements in Ghana, I believe the best way forward is careful proactive planning rather
than reacting to situations as happens now.
With my mother providing the only support for my education I could not pay all the fees
this year. She is a small trader and money is very tight. A grant will help me finish my
studies so I can then promote well planned urban settlements in the country.”
53
Financial Information
54
55
Financial Information
Financial summary
TOTAL SHAREHOLDER’S
EQUITY (�millions)
profit before tax
(�millions)
1100
1000
900
800
700
600
500
400
300
200
100
0
1800
1,012
1200
985
800
530
600
349
705
400
200
2005
2006
2007
2008
0
2005
2006
2007
GAS VOLUMES TRADED
Derivatives
80
80
1,565
1,565
2000
1500
1500
1,198
1,198
438
438
1,198
760
760
438
760
2005
2005
1,207
1,207
1,019
1,019
381
381
1,019
638
638
381
638
2006
2006
276
276
931
1,207
931
276
274
274
1,565
1,291
1,291
274
1,291
68
68
70
70
80
60
60
54
54
70
50
50
18
18
60
40
40
54
36
36
18
50
30
30
18
18
68
51
51
18
74
74
66
66
14
14
66
52
52
14
11
11
74
63
63
11
63
51
52
2005
2005
2006
2006
2007
2007
2008
2008
2005
2006
2007
2008
40
20
20
931
2007
2007
2008
(billion therms)
Physical
Derivatives
2000
2000
50000
1,147
1000
580
Physical
1000
500
500
1,680
1400
electricity VOLUMES
TRADED (TWh)
1500
1000
1000
1600
30
10
10
2008
2008
2000
36
10
0
2005
2006
2007
2008
coal VOLUMES TRADED
(million tonnes)
500
500
Physical
275
275
300
300
400
200
200
300
100
100
200
00
100
0
56
198
198
145
145
190
190
275
198
190
145
53
53
2005
2005
86
86
53
2005
2006
2006
86
2006
FREIGHT VOLUMES
TRADED (million tonnes)
200
200
Derivatives
400
400
500
0
415
415
310
310
202
202
240
240
240
160
160
2007
92
92
150
100
100
111
111
160
115
115
71
71
92
74
74
115
111
175
175
100
50
50
108
108
2007
2007
108
Derivatives
200
150
150
415
310
202
Physical
175
2008
2008
2008
41
41
71
24
24
40
40
5000
17
17
41
2005
2005
24
2006
2006
40
0
17
2005
2006
68
68
74
41
41
68
2007
2007
2007
2008
2008
41
2008
Financial Information
EDF TRADING PROFIT AND LOSS SUMMARY
For the year ended 31 December 2008
2008
€’000
2007
€’000
104,681,881
Turnover
Cost of sales (103,469,723)
58,726,070
(58,078,989)
Net trading income
1,212,158
Operating costs
(208,850)
Operating profit
1,003,308
Net interest (payable) / receivable
(378)
Share of joint ventures’ operating profit
22 Share of associates’ operating profit
9,304 Profit on ordinary activities before taxation
1,012,256
Tax on profit on ordinary activities
(293,843)
Profit on ordinary activities after taxation
718,413
Dividend
(185,000)
533,413
Retained profit carried forward
647,081
(136,537)
510,544
9,959
9,283
529,786
(162,972)
366,814
(205,000)
161,814
EDF TRADING BALANCE SHEET SUMMARY
As at 31 December 2008
2008
€’000
2007
€’000
Fixed assets
266,077 181,400
Current assets
14,971,375
9,206,916
Creditors: amounts falling due within one year (12,830,603)
(8,167,648)
Net current assets
2,140,772 1,039,268
Total assets less current liabilities
2,406,849 1,220,668
Creditors: amounts falling due after more than one year
(713,555)
(55,062)
Provisions for liabilities and charges
(13,129)
(18,110)
Net assets
1,680,165 1,147,496
Shareholder’s funds
1,680,165 1,147,496
Statutory accounts
Financial information contained in this document does not constitute statutory accounts within the meaning of section
240 of the Companies Act 1985 (“the Act”). The statutory accounts for the year ended 31 December 2008 will be filed
with the Registrar of Companies. The auditors have reported on these accounts; their report was unqualified and did
not contain a statement under section 237(2) or 237(3) of the Act.
57
The Executive Team
The Executive Team
John Rittenhouse
Chief Executive
Namesh Hansjee
Head of Trading
Justin Rowland
Chief Operating Officer
With the support of the executive
team, John is responsible for the
development and implementation
of EDF Trading’s strategy.
Namesh joined EDF Trading in April 1999
as Senior Electricity Trader. In 2001,
he became Head of Electricity Trading
and in July 2003, was appointed Head
of Trading. Previously, Namesh was an
oil trader with JP Morgan and Shell.
Justin joined EDF Trading in May 2001 as
Head of Risk Management. He succeeded
John Rittenhouse as Chief Financial
Officer in April 2005 and then became
Chief Operating Officer in September
2008. Justin previously worked for Ernst
& Young in London and New York.
John was seconded to EDF Trading in
1998 to supervise the start-up of the
business. He joined the EDF Trading
Board of Directors in April 2006 and,
prior to his appointment as Chief
Executive in July 2008, he held the
roles of Managing Director and Chief
Financial Officer. Previously, John spent
10 years with the Louis Dreyfus group.
John has an MBA in Finance and is
a Certified Public Accountant.
58
Namesh has a first class BA Honours
in Chemistry.
Justin has a first class BEng in Aeronautics
and is a Chartered Accountant.
The Executive Team
Emmanuel Deutsch
Head of Group Integration
and Synergies
François Joubert
Executive Vice President,
Corporate Development
Emmanuel joined EDF
Trading and the executive
team in September 2007 as
Head of Group Energy Risk
Management Services. He
is responsible for building
EDF Trading’s relationship
with the EDF Group and
developing synergies with
other EDF companies.
François was appointed to the
executive team in 2008. He
joined EDF Trading’s origination
team in 2000 and has led the
company’s development across
a number of areas, including
the set up and management of
our carbon emission origination
and trading business. Prior to
EDF Trading, François held a
variety of roles within the EDF
Group in the strategy division
at EDF’s head office in Paris
and as Financial Manager
for EDF China in Beijing.
Prior to joining EDF Trading,
Emmanuel held a number of
roles within EDF. He joined the
research and development
team in 1991 and in 1998
moved to the marketing division
where he was responsible
for structuring and pricing
end-user contracts. He was
appointed Head of Group
Energy Market Risk Control
in 2002.
François graduated from
Ecole Polytechnique, Ecole
Nationale de la Statistique et
de l’Administration Economique
and has an MSc in Accounting
and Finance from the London
School of Economics.
Béatrice Bigois
Chief Financial Officer
Robert Quick
General Counsel
Béatrice was seconded to
EDF Trading in 2006 to set
up and run our Paris office.
She assumed her role as
Chief Financial Officer
and became a member
of the EDF Trading Board
of Directors in September
2008. Since joining the EDF
Group in 1994, Béatrice has
held a number of roles in
finance, risk management
and asset optimisation at
both EDF and EDF Energy.
Robert is the General Counsel
and Head of Compliance
for EDF Trading. He was
appointed to the executive
team in 2008. He joined in
January 2002 as Assistant
General Counsel and became
General Counsel in May 2005.
Previously he worked for Enron.
Robert is a graduate
of Pembroke College,
Cambridge, and is a solicitor.
Béatrice graduated from
Ecole Polytechnique and
Ecole Nationale des Ponts
et Chaussees, where she
specialised in applied
mathematics and economics.
Emmanuel has a PhD
in physics.
59
60
80 Victoria Street
Cardinal Place, 3rd Floor
London SW1E 5JL
United Kingdom
tel +44 (0) 20 7061 4000
fax +44 (0) 20 7061 5000
www.edftrading.com
EDF Trading Markets Limited
Arranger for EDF Trading, authorised and regulated by the Financial Services Authority as an Energy Market Participant