EDP’s profit shrinks to 422 million euros

  • ECO News
  • 30 October 2020

The Portuguese company registered a drop in net profit, penalized by the coronavirus pandemic.

EDP ended the first nine months of the year with a net profit of 422 million euros. It registered a drop of 8% compared to the same period last year, with the pandemic weighing on the company’s financial results.

“EDP’s net profit dropped 8% YoY to €422m, with electricity prices and demand falling significantly vs. the same period of last year, despite some recovery in 3Q20,” says the company. “After electricity distributed in Portugal experienced a sharp 11% decline in 2Q20, the 3Q20 was broadly in line with the previous year (+0.3%), leading to an overall decline of 3.4% in 9M20, in line with the trends also observed in Spain and Brazil.”

EDP, which closed the first nine months with a 2% drop in EBITDA to 2,625 million euros, points out that “the Covid-19 pandemic had a negative impact of €54m on net profit, excluding forex impact, mainly due to the decline of electricity demand and increase of provisions on clients’ debts overdue.”

In addition to Covid-19, there were also non-recurring costs of 247 million euros (after taxes), “mainly related to conventional generation in Portugal including costs related to the anticipated closure of Sines coal plant, planned for the first days of 2021, provision on the alleged overcompensation regarding CMEC plants’ participation in the ancillary services market in 2009-2013.”