EDP wants to double its presence in Brazil by 2020, through expanding the distribution and transmission of energy, planning to invest €705m in the country.
Energias de Portugal (EDP) aims to double its size in Brazil by 2020, by expanding in the distribution and transmission of energy, a segment in which it expects to invest €705 million over the next four years, the company announced on Monday.
In comments to the financial newswire Bloomberg, the chief executive of EDP Brasil, Miguel Setas, said that the transmission segment should soon represent 20% of the company’s earnings (before interest, tax, depreciation and amortisation – EBITDA) by 2021. At present, this segment contributes next to nothing to the company’s results.
Setas also said that the company is “completely optimistic” about Brazil’s economic prospect, arguing that with one-digit interest rates and moderate inflation, growth should follow if the government implements its economic reform agenda.
The company’s growth plan includes looking out for opportunities to take control of or increase its stake in power plants in Santa Catarina, as well as to acquire other strategic assets.
Setas also mentioned the solar energy segment as another part of the company’s expansion plans.
With a market value of 9.4 billion reais (€2 billion), EDP Brasil is the eighth largest company in the Brazilian index of electricity generating companies.
According to Bloomberg data, in the first nine months of 2018, the company had an adjusted net profit of 748.7 million reais.