EDP distributes €695 million in dividends

 In News

Electricity giant EDP says its dividends payment policy will remain unchanged and will pay out almost €695 million to shareholders.

The decision was taken by the shareholders who met on Thursday at a virtual general assembly meeting and who voted in favour by 99.13% of the votes.
António Mexia, EDP CEO said that the company could do so because it had done its “homework with a prudent financing policy and asset rotation, providing strong liquidity of almost €7Bn.”
“The dividends are sustained exclusively from international activity, if it had been from the operation in Portugal they would have been zero,” said the CEO in a digital press conference, adding that EDP had more than 100,000 shareholders, with who it is “absolutely vital to maintain the level of commitment and confidence in the economy.”
He said that the dividends policy was the exclusive responsibility of the shareholders and that the proposal presented meets the company’s strategic plan which expects investments of €9Bn by 2022, a plan which remains in place.
“The balance is much improved, the situation is robust and the plan will remain,” said António Mexia.
As to a fall in revenues from Covid-19, Mexia said that it was “still too soon” to “understand the overall effect” since it would depend on the length of time that the reduction in energy demand would continue.
In the meantime, he said that the company would maintain its investment commitments and those with suppliers and employees.
“We do not foresee any need to change our plans for 2020 and we have more than half of our position covered for 2021,” he said.
EDP closed 2019 €7million down on profits on 2018 because the power provider was penalised by impairments from coal which the company had in Spain.
“If this had not been stockpiled, EDP’s profits would have been €40 million” said António Mexia at the time.