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Wind energy firm EDPR’s nine-month profit halves but beats estimates
Global Banking & Finance Review®
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LISBON (Reuters) – EDP Renovaveis, the world’s No. 4 wind energy producer, booked a 53% slide in nine-month profit on Wednesday due to fewer
LISBON (Reuters) – EDP Renovaveis, the world’s No. 4 wind energy producer, booked a 53% slide in nine-month profit on Wednesday due to fewer capital gains, though the result came in ahead of expectations.
Net profit tumbled to 210 million euros ($225 million), above the LSEG consensus estimate of 197 million euros. That included a charge of 65 million euros on projects in Colombia.
EDPR, which is majority owned by Portugal’s largest utility EDP, logged 179 million euros in capital gains from the sale of stakes in two wind projects and a solar farm – part of its strategy to sell interest in mature plants to finance new ones. That compares with capital gains of 393 million euros the previous year.
Electricity revenues and power generation both grew 5% during the first nine months of the year, to 1.73 billion euros and 26,531 gigawatt-hours (GWh), with growth mainly coming from North America and Asia-Pacific.
Europe and North America accounted for 31% and 55% of total generation output respectively, “with onshore wind representing 85% and solar 15%”, it said.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) fell 9% year on year to 1.29 billion euros, beating the 1.28 billion euros expected on average by analysts.
EDPR, which operates in 28 countries across Europe, Asia and the Americas, said that in September its installed capacity was 16.8 GW, up around 3.0 GW from a year ago.
($1 = 0.9323 euros)
(Reporting by Sergio Goncalves, editing by Inti Landauro and Edwina Gibbs)
Net profit is the amount of money a company has left after all its expenses, taxes, and costs have been subtracted from its total revenue.
Capital gains are the profits earned from the sale of an asset, such as stocks or real estate, when the selling price exceeds the purchase price.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, and it measures a company's overall financial performance.
Installed capacity refers to the maximum output that a power plant can produce under specific conditions, typically measured in megawatts (MW) or gigawatts (GW).
Revenue growth is the increase in a company's sales over a specific period, indicating its ability to expand and generate more income.
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