Is EDP no longer a Chinese company? “We were never a Chinese company”, says Miguel Stilwell d’Andrade
Ten EDP shareholders control 60% of the capital, which is why Stilwell d'Andrade rejects the idea that the company is Chinese. And he defends the importance of renewables in the company's future.
EDP had already decided to reconfigure its supply chain, buying equipment made in the USA, so it is better protected from the trade war and tariffs, explains Miguel Stilwell d’Andrade on ECO/CNN Portugal podcast ‘O Mistério das Finanças’.
“Clearly, the context is more uncertain, as they say. I think that one of the advantages of a portfolio like EDP’s, or a company like EDP, which is global, by having several regions, is to be able to allocate capital and also manage it according to the different dynamics”.
Despite the fall in the group’s share prices in the last year, the CEO guarantees that long-term investors have increased their weight in the shareholder structure, to 60% of the capital. After all, isn’t EDP a Chinese company? “We’ve never been a Chinese company”, he replied, emphasising the “balance of growing in the United States with a Chinese shareholder”.
Regarding the management of the company’s operations in the current context of trade war, Stilwell d’Andrade points out the opportunities in the areas of energy transition and investment in renewables and networks. “There’s a lot of investment to be made. So we have to choose the countries, we have to choose the good projects, but despite everything, I think we’ve had plenty of opportunity, even within this context of great uncertainty”.
Nevertheless, the CEO believes that “uncertainty is the worst thing for investment”, at a time when Donald Trump has pressed the pause button on the implementation of tariffs on most countries for 90 days. “Let’s hope that the US is able to reach agreements quickly with the various countries to define exactly what level of tariffs will apply, and with that I think investors will then be able to make their own decisions”, he said.
On the other hand, the CEO emphasises the fear that there will be a flood of products coming from China to Europe that were destined for the United States and suddenly arrive “under dumping” (below cost price). “We’ll see how Europe reacts”.
In terms of the possibility of a recession in the US, Stilwell d’Andrade says it’s “too early” to anticipate such a scenario. But, at least with regard to EDP’s business in the country, he sees no signs of a slowdown. In fact, the demand for renewable energies in the United States is “growing”.
