Portugal

Portugal

EDPR triples profits in Q3

In its third quarter results, EDPR announced a near tripling of profits to €342 million thanks principally to a €226 million pre-tax capital gain from the sale of 491MW of wind assets in Europe.

EDPR CEO João Manso Neto predicts a surge in US installations in 2020
EDPR CEO João Manso Neto predicts a surge in US installations in 2020

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The company plans to sell over €4 billion of assets up to 2022 with €1 billion already realised including €190 million from US assets sold in December 2018 and a further €300 milion of Braziian assets to be cashed in in the last quarter of 2019.

"Sell-downs are part of our core business model" and "make sense because we can reinvest in assets with a bigger return," CEO João Manso Neto said at the results presentation.

EDPR managed a 10% rise in revenues to €1.36 billion and a 40% jump in Ebitda to €1.22 billion.

A 5% rise in the average selling price to €56.1/MWh and a 6% rise in electricity generation despite the sales helped with the growth.

As of September 2019 the company had 1.2GW of new renewables capacity under construction, of which 834MW related to onshore wind and 330MW to equity participations in offshore projects, which will replace the assets being sold off.

Neto predicted strong future growth with 4.9GW of "already guaranteed" capacity. This equates to around 70% of the company's 7.7GW target set out in its 2022 business plan.

"2020 is going to be a peak year in the US wind market with 16GW or 17GW of new capacity" due to the imminent ending of production tax credits (PTCs), Neto predicted.

"Large-scale procurement of offshore wind in Europe in the next few years is also a certainty," he added.

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