Spain and US impacts EDPR’s profits

EDP Renováveis (EDPR) ended the first six months of the year with a profit of €142 million. It is a significant drop compared to the same period in the previous year, explained essentially by the business in Spain in the US.

The company’s net profit totalled €142 million, 44% less than the €255 million recorded in the first six months of 2020. EBITDA summed €654 million, retreating 13% due to “top-line performance mainly affected by the US weather one-off event in the 1Q, lower capital gains YoY and forex,” says the company led by Miguel Stilwell d’Andrade in a statement sent to CMVM.

In this period, revenues decreased to €856 million (-6%), “where the impact from Sell-down (-€69m YoY), lower average selling price (-€22m YoY; ex-Sell-down), mostly driven by Spain and US, unfavourable forex translation and others (-€38m YoY), were not offset by additional capacity” of energy production.

EDPR produced 15.3 TWh of clean energy in the first half of 2021, up 5% on the same period in 2020. However, that energy was sold at lower prices, the company says.

“The average selling price declined -7% YoY driven by Spanish portfolio mix YoY average post Sell-down transactions, US hedging on the back of the one-off weather event in the 1Q and unfavourable forex translation,” but also due to unfavourable currency effects.

The Portuguese company closed the first six months of the year with higher net debt. According to the statement sent to the CMVM, “net debt totalled €3,563 million,” which represents an increase of €120 million compared to that recorded at the end of last year.

This increase in debt reflects “the investment strategy” followed by the listed company led by Miguel Stilwell d’Andrade. It was, moreover, “partly neutralised by the capital increase received in April” in the amount of €1.5 billion.