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EDPR blames Texas freeze for 39% drop in profits

EDPR reports decreases in revenue, earnings and net profit in the first quarter, with extreme weather and blackouts in Texas to blame

EDPR reported almost 2.9GW of wind and solar capacity under construction at the end of the first quarter of 2021
EDPR reported almost 2.9GW of wind and solar capacity under construction at the end of the first quarter of 2021

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EDP Renewables (EDPR) reported that the extreme weather event in Texas and the wider associated reduction in wind resource in the US was the main cause of hits to its profit in the first quarter.

It recorded a 39% drop in net profit to €38 million and a 21% fall in Ebitda to €269 million in the first three months of 2021. Revenues, meanwhile, were 8% down at €448 million.

The company calculates that the harsh winter storms in Texas and subsequent blackouts negatively impacted net profit and Ebitda by €25 million and €35 million respectively, counteracted somewhat by an improved load factor in Europe and Brazil, which added €22 million to pre-tax earnings in those markets.

Electricity production rose 5% to 8.1TWh, thanks to a net increase in capacity of more than 1.2GW and to a 1% overall increase in wind resource, but prices dropped by 8% year on year to an average of €52/MWh — with most of the impact being felt in Spain and the US.

Pipeline

EDPR reported almost 2.9GW of wind and solar capacity under construction at the end of Q1 2021. It has a near-term pipeline of 6.4GW of renewables projects in deveopment, and is negotiating power purchase agreements (PPAs) for 2.5GW of this future capacity.

EDPR also highlighted the positive outlook for the wind business with the Biden administration pushing for 30GW of offshore wind by 2030 and both Spain and Portugal focusing on the energy transition in their newly submitted recovery and resilience plans.

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