EDP Renewables profits up 4% to €68 million in Q1

EDP Renewables profits were up 4% in the first quarter of 2024 to €68 million on the back of a fall in net financial costs and non-controllable interests, according to the company in a communiqué yesterday.

The net results were positively impacted by a lesser contribution from top line or gross sales and increases in taxes, and offset by a reduction in net financial costs and non-controlling interests (-11% year-on-year).

Revenues stood at €632 million, down 11% like-for-like on 2023, due to a lower average selling price (-3%) and lower energy production (-3%).

Other operating income reached €84 million in gains (€21 million in Q1 2023), mainly down to asset rotation transactions in the US and Canada.

EDPRs’ operating costs (EDP is the main shareholder with 71.27% of the capital) fell 5% on Q1 2023, reflecting a 15% reduction in Other Operating Costs.

The financial results of €108 million in Q1 2024 (-14% year-on-year) were impacted by the strategy of rebalancing the foreign exchange mix of the company’s debt, with an increase in the euro and a reduction in the dollar, and by the increase in capitalised financial expenses.

The average selling price was €61/MWh (-3% year-on-year), reflecting the lower prices in the electricity market in Europe.

According to the information sent to the CMVM, EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased by 1% in the first three months of the year, to €454 million.

Gross investment amounted to €0.8Bn euros in the first quarter of the year, with more than 80% of the operating investment in Europe and North America, reflecting EDPR’s focus on its core low-risk markets.

Net debt reached €6.7Bn, an increase of 0.9 billion compared to December 2023, reflecting the investments made. In the first quarter of 2024, EDPR added 0.5 gigawatts (GW) of renewable capacity, reaching a total installed capacity of 16.5 GW, following the recovery of solar capacity conditions in the US (+0.4 GW).

EDPR’s renewable production decreased by 3% year-on-year, to 9.9 TWh (Terawatt hours) in the first quarter of 2024, avoiding six million tons of CO2 emissions, mainly impacted by the rotation of wind assets in the last 12 months, and by the decrease in production in Brazil (-54% year-on-year).