EDP’s first-quarter profit rises 23%

  • ECO News
  • 13 May 2021

The Portuguese company informs the market that net profit totalled €180 million, representing a rise of 23% compared to the previous year.

EDP recorded a net profit of €180 million in the first quarter of 2021, an increase of 23% compared to the same period last year, according to a press release sent on Thursday to the Securities and Exchange Commission (CMVM).

In this period, EBITDA fell by 12% to €864 million. Of this, 445 million (52%) relate to the renewables sector. The company stresses that “excluding the sale of 6 hydro plants in Portugal closed in Dec-20 (EBITDA contribution of €56m in 1Q20), EBITDA declined 10% YoY (-€48m YoY).”

This mainly reflects the “negative impact of the Polar Vortex weather event in US (c.-€35 million), the de-consolidation of wind assets sold in Dec-20 (€28 million EBITDA contribution in 1Q20), adverse ForEx impact (-€24 million) and lower average wind & solar selling price (-8% YoY) which was not fully compensated by the strong hydro performance Iberia and recovery of hydro performance in Brazil to normalized levels,” the company explained.

As for gross investment, the electric company reported that it increased 52% to 700 million euros, “of which 93% allocated to activities fully aligned with the energy transition.” In the first quarter of 2021, “85% of EDP’s electricity generation came from renewable energy sources, with specific CO2 emissions falling 9% YoY, accelerating EDP’s contribution to the decarbonization of the economy,” the company reported.

EDP also revealed that the good performance of hydro in the Iberian market in recent months ended up offsetting the drop in US renewable generation. Debt rose 7% to €13.1 billion because the company took advantage of low-interest financing.