"The solid 1H22 results, mainly driven by increase of avg. selling prices and generation increase, resulting in strong EBITDA and net profit," the company writes in its financial statement.
EDP Renováveis (EDPR) increased its profits by 87% to €265 million in the first half of the year, a result that compares with gains of 142 million recorded a year ago and is explained by higher energy prices, the company announced in a statement sent to CMVM.
“The solid 1H22 results, mainly driven by increase of avg. selling prices and generation increase, resulting in strong EBITDA and net profit,” the company writes in its financial statement. Revenues totalled €1,237 million, resulting in a 45% increase compared to the first six months of 2021 (€381 million). The average selling price increased 27% year-on-year (YoY), “mainly driven by higher market prices in Europe and impact from Spanish regulatory framework update,” according to EDPR.
EBITDA (earnings before interest, taxes, depreciation and amortisation) increased 49% YoY to €976 million. EBIT (earnings before interest and taxes) rose 76% to €640 million “supported by top line solid performance.”
On the other hand, operating costs amounted to €463 million in this period, a 40% YoY increase, due to the up-front costs to support expected growth over the coming years. “EDPR’s 1H22 solid operational performance supported by the increase of generation driven by additional installed capacity and stronger renewable resources,” The company says.
EDP Renováveis also revealed that net debt totalled €5.23 billion at the end of June, “reflecting on the one hand the strong increase of investments in the period, including the acquisition of Sunseap, and forex translation and on the other hand assets cash generated and Asset rotation strategy.”
EDP Renováveis is the second energy sector company to report results this week (on Monday it was Galp’s turn) and is the second to announce significant increases in profit.