EDP Renewables FY 2015: net profit increased 32% to €167 million

EDP Renewables FY 2015: net profit increased 32% to €167 million

Madrid, 24 February 2016: EDP Renewables (Euronext: EDPR), a global leader in the renewable energy sector and one of the largest wind energy producer in the world, announced today that revenue for 2015 amounted to €1.547bn (+21% YoY). EBITDA increased by +26% to €1.142bn, representing an EBITDA margin of 74%. EDPR reported net profit of €167m for the year represents an increase of 32% on the €126m reported in 2014.

According to João Manso Neto, EDP Renewables CEO: “The company’s excellent performance in 2015 demonstrates that our strategic and operating decisions were on target. Our diversification into markets and regions with wind energy potential and advantageous conditions for our business, as well as our asset rotation strategy, have been key to EDP Renewables’ robust performance”.

Operating results

By Dec-15, EDPR managed a global portfolio of 9,637 MW spread over 10 countries. In 2015, EDPR added 602 MW to its installed capacity, of which 398 MW were in the US.

Electricity production increased by +8% YoY to 21.4 TWh, thanks to the positive effect of new capacity addition, thus offsetting lower wind resources. The load factor for 2015 stood at 29% (-1% vs. 2014).

The selling price increased +9% YoY to €64/MWh, benefiting from a higher average selling price across all platforms and forex translation.

Financial results

Revenue totalled €1.547bn, an increase of 21% YoY, supported by favourable forex translation (+9%), primarily in the US, higher volumes (+8%), and higher electricity selling price (+2%), among other tailwinds (+2%).

EBITDA increased by +26% YoY (+20% excluding one-offs) to €1.142bn with an EBITDA margin of 74%. In 2015 EDPR’s EBITDA benefited from non-recurring events (c.€80m), positively impacted by €125m extraordinary gain following the control acquisition of certain ENEOP assets and negatively impacted by €72m in write-offs following a strict focus on development efforts in regions with sound business fundamentals.

At Dec-15, EDPR recognised EBIT of €578m, representing a +37% YoY increase. This is the result of EBITDA performance and an €84m increase in depreciation and amortisation costs.

Net financial expenses for the year increased 14% (totalling €285m) due to the adverse effect of the dollar’s appreciation, the consolidation of the ENEOP assets and a write down (non-cash) of deferred costs related to the restructuring of certain project finance structures in 2Q’15. If the impact of forex and one-offs are excluded, net financial expenses were 1% lower YoY.

EDPR’s net profit rose +32% to stand at €167m in 2015 and adjusted net profit increased +13% YoY (FY2015 one-offs +€59m). Non-controlling interests in the period totalled €79m, representing an increase of €27m YoY, thanks to the non-controlling interest sold as part of the asset rotation strategy and to CTG in the context of its strategic partnership with EDP.

In the 4Q’15, EDPR reached an agreement with Axium for the sale of non-controlling interests in a 1 GW US portfolio and with CTG for the sale of a 49% stake in a 598 MW portfolio which includes Polish and Italian assets.
In 2015 EDPR’s operating cash flow reached €707m and net investments amounted to €719m, benefiting from the execution of the asset rotation strategy.

At Dec-15, net debt totalled €3.7bn (+425m vs. Dec-14), explained, among other factors, by the ENEOP asset consolidation and forex translation, reflecting 3.2x Net Debt/EBITDA ratio (vs. 3.6x in 2014).

Dividend pay-out

The Board of Directors of EDPR will propose a dividend distribution to the shareholders at the General Meeting of €44m (€0.05/share), representing a pay-out ratio of 26%.