EDP’s profit up 9% to €343 million in H1
The company’s performance was penalised by the rise of energy prices in the Iberian market and by below-average wind resources in the US.
EDP’s net income grew 9% in the first half of 2021, compared to the same period last year. The company revealed, in a statement sent to the Portuguese Securities Market Commission (CMVM), that it made profits of €343 million between January and June this year.
“1H21 performance was positively impacted by the integration of Viesgo in Spain and the increase in results in networks in Brazil, having been penalized by the rise of energy prices in the Iberian market and by below-average US wind resources,” the statement said.
In this period, EBITDA fell 10% to €1.7 billion, down from €1.9 billion in the same period last year.
As for EDP’s gross margin also fell 9% in the first half of 2021 to €2.4 billion, compared to €2,657 million recorded in the first six months of 2020.
The Portuguese company explains that the financial results performance “is significantly impacted by the extraordinary cost related to the debt repurchase in 1Q20 (€57m), as well as by the positive evolution of FX and Financial Derivatives (+€10m in 1H21 vs. -€16m in 1H20).”
By the end of June, EDP’s net debt amounted to €13.2 billion, “impacted by an acceleration of investments, especially in renewables and networks, following the strategic plan presented in Feb-21, as well as by an increase of working capital investment following the optimisation of treasury management in the context of high financial liquidity and low short-term interest rates.”
Looking ahead to 2021, EDP expects to reach a recurrent EBITDA of €3.7 billion, recurrent net profit above €800 million and net debt between €11 and €11.5 billion.
Regarding investment, it increased 29% to €1.6 billion in the first half, “of which 95% is allocated to renewable energy and electricity networks activities, fully aligned with the energy transition,” said the company.
In the last 12 months, EDP also reports having installed 2.1 GW of wind and solar capacity, “expanding its footprint into several new markets, reinforcing the Group’s position as a global leader in renewables.”
As for the asset rotation programme, it has already secured about 25% of the €8 billion target planned up to 2025. At the end of June, EDP concluded the sale of a portfolio of assets (405MW) in the United States for around €0.5 billion was concluded and an additional asset rotation agreement was also recently announced for a 221 MW wind portfolio in Europe for the same amount.
