EDP profits soar 75% to €762 million in H1

EDP made a profit of €762 million in the six months ended in June, the company said on Tuesday, in a statement published on the website of the market regulator, the Securities Market Commission (CMVM).

The net result compares with the €437 million obtained in the first half of last year, a 75% jump over this period. In recurring terms, the profit obtained in the first six months of 2024 was €775 million, and would have been €591 million without the gains from asset rotation.

Taking into account the results until June, “EDP expects to achieve a recurring EBITDA of about €5Bn for 2024, a recurring net result of approximately €1.3Bn, in line with the financial objectives presented in May”, reads the statement.

EDP justifies the first half results on the “good result of the gains with the rotation of electricity transmission assets in Brazil and wind and solar energy production assets in Italy, USA and Canada”. On July 17, the asset rotation transaction in Italy of about €0.4Bn was added, “and additional transactions are expected in the second half of the year,” says the electric company, in the same statement.

The 20% increase in renewable energy production, mainly hydropower in Portugal ( 69%) and wind and solar in the US ( 13%) offset the drop in wholesale electricity prices in Europe and the sharp reduction in fossil fuel-based electricity production, adds the electric company.

Recurring EBITDA increased by 8% to €2.670Bn. Wind and solar production grew by 5% and the average selling price remained stable, benefiting from rising prices in the US and with falling prices in Europe being partially offset by hedging strategies.

In June 2024, net debt totalled €17.4Bn, up 14% compared to December 2023, “reflecting the acceleration of investment in renewable energy and electricity networks”, the payment of dividends in the second quarter and the increase of €0.4Bn in regulatory assets in Portugal.

At the end of last week, EDP reported that its green energy subsidiary, EDP Renováveis, showed a 163% growth in profits in the same period, compared to the first six months of last year. It reached €210 million, supported by the recovery of operating performance and asset turnover gains, despite a €64 million increase in financial costs.