One-Offs Lower EDP Renewables’ Profit

EDP Renewables, part of EDP, posted total revenue of EUR 889 million in the first half of 2016, a 15% increase compared to the same period a year earlier, on the back of the increase in installed capacity and a higher load factor, both offsetting a 7% drop in average selling price during the first six months.

However, net profit between January and June dipped by 15% YoY to EUR 59 million, while adjusted net profit was up 9% YoY to reach EUR 78 million. In like for like terms and excluding one-off events, net profit shows positive year-on-year performance that will be further strengthened by the reduction in the cost of debt, EDPR says.

The company’s EBITDA was up 18% YoY to reach EUR 648 million in response to solid revenue performance and the drive to control costs, while EBIT gained EUR 61 million to reach EUR 354 million.

Retained cash flow totalled EUR 385 million in the first half of 2016, 34% more compared to the same period of 2015, while net debt fell to EUR 3.3 billion, shedding EUR 400 million in the year to date.

At 30 June, the company managed an operating portfolio totalling 9.7GW of renewable energy generating capacity spread across 10 different countries, with additional 656MW under construction.

Between January and June of 2016, EDPR has supplied 13.3 TWh of green electricity, up 23% on the 10.8 TWh reported in the same period of 2015.

João Manso Neto, EDP Renewables CEO, said: “We have had an excellent start to the year, giving us a clear view of what lies ahead in ensuring the successful implementation of our 2016-2020 business plan. Once again, we can show the market that our vision and model are on target. Our decisions are based on three main pillars: asset quality, selective and profitable growth and self-funding; the three keys to EDPR’s ongoing success.”

EDP Renewables owns Moray Offshore Renewables Limited (MORL), holder of the right to develop 1.3GW of offshore wind energy in Zone 1 of the UK Third Offshore Wind Licensing Round (UK Round 3).

MORL split the site in the Moray Firth into an eastern and western development area, and developed proposals for the eastern development area first, receiving consent from the Scottish Government for 1,116MW in 2014.

However, EDP suggested that the UK leaving the European Union might delay the development of the project.