EDP profits up 43% in H1, 2023
Portugal’s electricity giant EDP saw profits increase 43% in the first half of 2023.
The positive results were partly down to a recovery in hydro-electricity production that between January and June increased 68%.
This followed a difficult 2022 in which the company’s first half was hard hit by an extreme drought in Portugal that saw water levels in reservoirs and damns plummet to extremely low levels.
EDP also expects to post a net result of around €1.1Bn for 2023. Contributing towards this result is the IPO from EDP on EDP Brasil that should be completed by the end of the third quarter of 2023.
“EDP expects that the purchase of all of the minority EDP Brasil shares will have a positive impact on its net results by around €90 million in 2023, and a further €120 million per year between 2024 and 2026”, states the company’s first half results.
Excluding the €80 million non-recurrent costs, of which EDP highlights an impairment regarding “uncertainties” over the future of EDP Brasil’s coal-fired power station at Pecém, Brazil. The recurrent net result in the first six months of the year increased 72% to €517 million.
EDP’s EBITDA increased 23% to €2.4Bn on the same period in 2022 driven by the increase in hydro production and he return to normal of electricity and gas supply costs compared to the first half of 2022, with a positive impact on the recovery of integrated production and sales margins on the Iberian peninsula”.
Overall, the company’s net result improved 43% to June on the same period to a total of €437 million.