EDP's profit falls 8% to 422 million euros in the nine months

The energy company pointed out that the loss in Portugal was 23 million euros, in a sequence of losses that began in 2018. At the group level, EBITDA - earnings before interest, taxes, depreciation and amortization - decreased 2% to 2.625 million euros

EDP-Energias de Portugal's net profit fell 8%, year on year, in the first nine months of 2020, to 422 million euros, pressured by the “significant falls” in demand and electricity prices and also by several non- totaling 247 million, the company announced Thursday.

EBITDA - earnings before interest, taxes, depreciation and amortization - fell 2% to 2.625 million euros, he said, in a statement published on the CMVM website.

In Portugal, the energy distributed in the third quarter was practically in line with the previous year (+ 0,3%), after the strong drop of 11% in the third quarter, resulting in the accumulated drop of 3,4% in the nine months, in line with the trend observed in Spain and Brazil, he said.

“In the nine months of 2020, the pandemic crisis COVID-19 had a negative impact of 54 million in the net result, excluding exchange rate impact, mainly due to the drop in electricity demand and the increase in provisions for customer debts”, he underlined.

In terms of negative non-recurring items, the company stressed that they were mainly at the level of conventional activities in Portugal, including, extraordinary costs with the anticipation of the closure of the Sines coal plant, scheduled for the first days of 2021, a relative provision the return of the alleged overcompensation of CMEC exchanges in the system services market in the period 2009-2013, included in the proposal for regulated tariffs for 2021, and the annual cost with the extraordinary contribution of the energy sector (CESE).

This environment contributed to a negative net result in Portugal of 23 million following consecutive years of losses in conventional activities in the domestic market.

“Regarding CESE, in the context of the current pandemic crisis and following the periodic analysis of the probability of success and costs with ongoing legal proceedings, EDP decided to give up the judicial litigation with the Portuguese State regarding this Contribution,” he explained.

EDP ​​gives up the case against the State at CESE. Costs outweigh probability of success

Recurring net income increased 14%, to 669 million, supported by the normalization of water resources in the Iberian Peninsula (compared to the dry period of 2019) and by the risk management policy in the energy markets, with positive results associated with high volatility in the period .

EDP ​​said that these effects more than offset the devaluation of the Brazilian real against the euro (-23% in average terms), wind resources 9% below the long-term average and a reduction compared to the homologous period of gains with turnover. renewable assets, which totaled 200 million in the nine months. associated with the creation of the joint venture with Engie for the offshore wind business.

At the end of September 2020, net debt stood at 13 billion euros, 6% below the figure at the end of last year, "with a positive impact from the capital increase of XNUMX billion euros in August".

Since the beginning of the year, the company has issued 2,2 billion euros in green bonds, at an average cost of 1,7%, with sustainable financing (green bonds) currently representing 30% of EDP's debt.

“It is expected that a significant volume of transactions announced over the past 12 months will be concluded in 2020, namely, the sale of 2 gas plants and the retail customer portfolio in Spain, the sale of the 6 hydro plants in Portugal, the 2 renewable asset rotation transactions agreed in Europe and the USA, as well as the acquisition of Viesgo in Spain and consequent partnership with Macquaire for the distribution of electricity in Spain ”, he explained.

“These transactions will contribute to reinforcing EDP's low-risk profile and alignment with the energy transition”, concluded the energy company.

EDP ​​Renováveis, in which EDP holds an 82,6% stake, announced this morning that net profit fell 7% to 319 million in the first nine months compared to the same period last year. The drop in profits was due to the 7% drop in energy production to 20,4 terawatts per hour, due to the sale of assets of the electric company led by Rui Teixeira, interim executive president.


EDP ​​Renováveis ​​profits fall 7% until September

[Updated at 18:24 am]

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