EDP rejects notion of US pressure over Chinese shareholder

Portugal’s multinational energy company EDP has rejected the idea that it is under pressure from the United States because one of its shareholders is the Chinese State-backed energy company China Three Gorges, but says it is “monitoring” the situation.

EDP presented its 1Q results for 2025 making a net profit of €428 million which its CEO Miguel Stilwell says reflects that the company is “on the right track”.

In relation to growing tensions between the United States and China, he said the results had in no way reflected pressure on the company because of its Chinese shareholder that has a 20% share of its capital.

Regarding whether EDP had been under any kind of pressure in the United States since its largest individual shareholder is Chinese, Miguel Stilwell rejected the idea: “No. China Three Gorges has been a shareholder for many years, and we have had this balance between having a shareholder with 20% [of the capital] and at the same time continuing to grow in the United States. There has been no additional information or anything showing a change in the relationship with us”, said Stilwell.

When asked about the impact of worsening tensions between the world’s two largest economies, and if it posed an increased risk to EDP, Stilwell merely said that the company “continues to monitor the situation.”

Stilwell said EDP shares had climbed 15% in recent weeks which revealed a sentiment and perception of future growth but admitted that there was uncertainty over the US and tariffs in particular.

Stilwell and Rui Teixeira (CFO) hosted a webcast presentation on Friday (May 9) followed by a Q&A session.

The company reported €1.4Bn in EBITDA for the first quarter, up 6% from the same period last year, and 5% above consensus estimates.

Net income for the quarter was €0.4Bn, exceeding consensus by 15%. A strong performance in the Hydro and Iberian clients division, where EBITDA rose by 33% year-on-year, partially offset weaker results in the Brazilian networks.

The latter was affected by a one-time asset rotation gain related to the disposal of transmission lines in 1Q24 and higher foreign exchange costs.

EDP’s net debt stood at €16.1Bn, up 4% quarter-on-quarter. The Net Debt/EBITDA ratio reached 3.6x, and the company’s FFO/Adjusted Net Debt ratio was 21%.

The company provided guidance for full-year 2025, projecting EBITDA of €4.8Bn and net income of €1.2Bn, both in line with consensus expectations.

Additionally, EDP completed its €100 million share buyback program, which was announced on February 27, 2025.

The buyback was executed at an average price of €2.89 per share, implying a price-to-earnings multiple of 9.9x for 2025 and a dividend yield of 6.9%.