EDP Renewables accounts “disappointing”

The international investment bank Goldman Sachs says that the third quarter results for EDP Renováveis, the renewables arm of Portuguese energy giant EDP, are “disappointing” and have penalised EDP’s 3rd quarter results.

Nevertheless, Goldman Sachs expects the overall results of the parent company for 2023 to be positive. EDP believes it will rake in a profit of €1.1Bn for 2023.
The third quarter results will be presented to investors and the markets on November 2. EDP made profits of €437 million between January and June this year for the first half of 2023, a performance that was 43% up like-for-like on 2022.
The gross margin for the first half rose 26% to €3.66Bn, EDP improved its EBITDA by 23% to €2.45Bn, driven by an increase in hydro-energy production and the return to normal of electricity and gas supply costs on the first half of 2022, with a positive impact on the recovery of the integrated margin from Iberian production activity and sales.
In the business that aggregates hydro production and clients and energy management on the Iberian Peninsula, the EBITDA skyrocketed 553% to €822 million, more than compensating the 23% reduction in EBITDA in the wind and solar energy operations, to €754 million. In the networks area the result was stable at €726 million EBITDA.
The company expects to close 2023 with an EBITDA of €5Bn while its net debt is expected to be €15Bn.