EDP Renewables 2014 Results
EDP Renewables FY 2014: revenues totalled €1,277 million, net profit reached €126 million
- The company’s operating portfolio, distributed over 10 countries, reached 9.0 GW in 2014.
- In 2014 the company executed more than 60% of its cumulative asset rotation target (€0.7bn) for 2014-2017.
- EDPR proposes a dividend distribution of €0.04 per share, reflecting a 28% pay-out ratio.
Madrid, 25 February 2015: EDP Renewables (Euronext: EDPR), a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer, announced today that its electricity output increased by 3% (YoY) to 19.8 TWh in 2014, on the back of capacity growth (+0.6 TWh) and stable wind resource YoY. Over the last 12 months, the company added 471 MW to its installed capacity, of which 70% was in the US. By 2014 year-end, EDPR reached a total portfolio of 9.0 GW spread over 10 countries. Of this total, 82 MW related to solar PV power plants in Romania, the US and Portugal.
In 2014 EDPR was able to maintained a stable YoY load factor of 30%, reflecting the benefit of a balanced portfolio across different geographies and the intrinsic quality of EDPR’s wind farms, and thanks to the company’s unique wind assessment know-how.
FY 2014 revenues totalled €1,277 million (a YoY decrease of €40 million) due to lower selling prices in Europe and forex translation (-€3 million, mainly BRL). EBITDA decreased €17 million YoY to €903 million due to the regulatory changes in Spain, while rest of portfolio delivered solid performances (+9%YoY). EBITDA margin increased to 71%, reflecting an increase in operational efficiency, with Operating Costs decreasing by €18 million YoY, and mitigating the negative impact from the top-line.
Net Financial Expenses in 2014 were 5% lower YoY, amounting to €250 million. The net interest costs increased by 3% YoY, as a result of a higher average net debt (+4% YoY) along with a stable cost of debt (5.2% in Dec-14). Pre-Tax Profit amounted to €194 million and income taxes decreased to €16 million, due to the positive effect of the approved corporate tax reform in Spain impacting deferred tax assets and liabilities (€30 million).
Net Profit decreased 7% YoY to €126 million. Non-controlling interests in the period totalled €52 million, an increase of €18m YoY on the back of non-controlling interests sold to CTG (Jun-13) in the context of the EDP strategic partnership, and to Fiera Axium (Sep-13), Axpo Group (Oct-13), EFG Hermes (Oct-14) and Northleaf (Nov-14) as part of the execution of the asset rotation strategy.
In 2014, Operating Cash-Flow reached €707m (+4% YoY), on the back of EDPR quality assets and operational excellence. Net investments reached €515m, benefiting from the execution of the asset rotation. In the year, cash available for growth and distributions totalled €413m, and on top of that EDPR cashed-in proceeds from the asset rotation (€215m) and institutional tax equity financing structures (€217m) concluded in 2014. As of Dec-14, Net Debt summed €3.3bn, in line with Dec-13 and despite the negative impact of forex translation (€170m).
Of particular note is the fact that the company continued to execute efficiently its asset rotation strategy with a cumulative asset rotation target of €0.7 billion for 2014-2017. In 2014, EDPR executed more than 60% of said target.
2014 also saw the company commence operations in two new markets. The company executed the project finance for its first project in Canada (South Branch project, Ontario, 30 MW) and entered the Mexican wind-energy market after an agreement with Industrias Peñoles, a leading Mexican mining company.
Also, and in line with the current dividend policy, the Board of Directors will propose a dividend distribution at the ASM of €35 million, or €0.04/share, reflecting a 28% pay-out ratio.
About EDP Renewables (EDPR)
EDP Renewables (Euronext: EDPR), headquartered in Madrid, Spain, is a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer. With a sound development pipeline, first class assets and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is currently present in 12 markets (Belgium, Brazil, Canada, Spain, the US, France, Italy, Poland, Portugal, the UK, Romania and Mexico). Energias de Portugal, S.A. (“EDP”), the principal shareholder of EDPR, is a global energy company and a leader in value creation, innovation and sustainability. EDP is Portugal’s largest industrial group and the only Portuguese company to form part of the Dow Jones Sustainability Indexes (World and STOXX).
For more information, please visit www.edpr.com.