Portugal's EDP upgrades recurring profit outlook again after strong earnings

Portugal’s EDP Lifts 2023 Recurring Profit Forecast After Robust Growth

EDP’s Financial Performance and Upgraded Forecasts

Recurring Net Profit Guidance Raised

LISBON, Nov 6 (Reuters) - Portugal's largest utility EDP raised its full-year recurring net profit guidance for the third time this year on Friday, to between €1.4 billion and €1.5 billion ($1.6 billion to $1.7 billion) after nine-month recurring net income rose 22%.

EDP had forecast annual recurring net profit of €1.4 billion in July.

2026 Earnings Expectations

It said expectations that 2026 recurring earnings before interest, taxes, depreciation and amortization would reach €5.4 billion, above its previous €5.3 billion forecast, underpinned the higher recurring net profit guidance.

Drivers of the Upgraded Guidance

The company said in a statement that its third guidance upgrade this year was driven by "outperforming execution of its business plan across all segments".

Strong Performance Across Business Segments

EDP said on Thursday recurring net profit rose 22% from a year earlier to €1.19 billion in the first nine months, helped by strong earnings from its renewables arm and higher regulatory returns at its Iberian networks business.

EDP Renewables’ Contribution

Subsidiary EDP Renewables, the world's fourth-largest wind power producer, posted nine-month recurring net profit of €439 million, more than double a year earlier, on strong US growth and higher capital gains.

($1 = 0.8930 euros)

(Reporting by Sergio Goncalves; Editing by Emelia Sithole-Matarise)