The sale of Naturgas pulls EDP’s profits to 1,147 million

  • ECO News
  • 3 November 2017

The Portuguese electricity company ended the first nine months of the year with 1,147 million euros' profit, 86% more than in the same period of last year. One-offs are responsible for this growth.

EDP achieved a 1,147 million euros’ profit in the first nine months of the year, an 86% growth in comparison to the same period of 2016, according to the company’s announcement sent to the Portuguese Securities Market Commission (CMVM).

The Portuguese electricity company headed by António Mexia justifies this profit growth with the impact of the 558 million euros from the sale of Naturgas. Without this one-off effect, profits would have increase from 615 million in the same period of last year to 633 million euros. In spite of this increase in profits, EDP suffered a 3% fall in the group’s gross profit, which stood at 4.122 billion euros.

EBITDA (earnings before interest, taxes, depreciation and amortization) grew 13% to 3.26 billion euros; adjusted for one-off impacts, EBITDA decreased 4% to 2.7 billion euros, mainly reflecting the de-consolidation of gas distribution in Spain as from 27-Jul-17″. EDP explains that in spite of having increased its production capacity, the group faced “the abnormally dry weather” in the first nine months of the year, “compared to last year’s outstanding hydro conditions” in the same nine months of last year.

Net debt retrieved 5%, from 15.9 billion euros in December of 2016 to 15.1 billion euros in September of 2017. This debt reduction is essentially influenced by the sale of Naturgas, which was concluded in March of 2017, for 2.5 billion euros. António Mexia’s company assured, by then, that the sale would have a 2.3 billion euros’ impact in reducing EDP’s net debt in 2017.

Consolidated capital expenditure (capex) amounted to 1.078 billion euros in the first nine months of the year, 60% of which dedicated to expansion, namely in “the construction of new hydro & wind capacity” worth 754 million euros; the same press release adds that “91% was dedicated to regulated or long term contracted activities”.

Net investment reached 1.148 billion euros, comparable to the 505 million euros registered in the first nine months of 2016. This amount includes 1.078 billion euros of capex and 70 million in financial investments, excluding the sale of a minority stake in Portuguese wind assets to CTG.