SHARE PAGE

X

EDP Renewables shows consistent financial and operational growth for H1 2010

EDP Renewables shows consistent financial and operational growth for H1 2010

Madrid, 28 July 2010: EDP Renewables (EDP Renováveis, Euronext: EDPR), a global leader in the renewable energy sector and the world’s third-largest wind energy producer, today announced that gross profit increased 30% for the period January to June 2010 to €462 million and EBITDA grew 27% to €343 million, with an EBITDA margin of 74%. The company registered net profits of €43 million for the period.

Total gross profit reached €462 million, a 30% increase on H1 2009, which was mainly driven by output growth in all regions but especially in Europe. EDP Renewables registered an increase in gross profit of €75 million in Europe in H1, compared with an increase of €31 million in the US. These figures are reflected by the company’s EBITDA, which rose by €60 million in Europe and by €15 million in the US.

During the period, the company’s investments totalled €834 million. The company currently has 1,317 MW under construction, of which a total of 509 MW is located in the US and 466 MW is located in the Iberian Peninsula. A significant amount of investment was directed to Central and Eastern Europe, in particular to Romania. EDP Renewables currently has 613 MW in the project stage and 228 under construction in this market where new legislation governing wind power has just been approved which entails, among other things, an incremental increase of the percentage of energy production from renewable sources, reaching 20% in 2020. EDPR thereby demonstrates, once again, its commitment to investing in a diverse range of attractive regions.

The 1,033 MW year-on-year growth in installed capacity was key to obtaining the 32% increase in output, which reached 6,940 GWh. During H1, installed capacity increased by 216 MW, with 125 MW corresponding to Europe and 92 MW to the US. EDP Renewables’ installation planning is focused on the final part of the year and is determined by the wind farm construction schedule. At the close of H1, EDP Renewables had 1.3 GW under construction, of which 740 MW is located in Europe, 509 MW in the US and 70 MW in Brazil.

The drop in load factor in the US was balanced out by the growth in load factor in Europe, which increased from 25% in the first half of 2009 to the 29% registered in the last six months. EDP Renewables’ system wide load factor remains stable at 31%, which is higher than the sector average.

EDP Renewables continues to successfully manage its project portfolio, with a focus on controlling exposure to power market volatility. 81% of the electricity output between January and June 2010 was sold with no exposure (or limited exposure) to market volatility and the average selling price stood at €59/MWh (€84/MWh in Europe and $49/MWh in the US). The portfolio’s average performance remained stable in an environment characterised by tough prices, especially in Spain, which were partly mitigated by a hedging strategy.

H1 highlights

In the first six months of 2010 the company’s continued flexibility in terms of output was key for its ability to remain competitive. The company signed an unprecedented framework agreement with the wind turbine provider Vestas which will increase competitiveness and give it the flexibility it needs to be ready for the different market scenarios that could arise after 2010.

EDP Renewables continues to optimise its asset portfolio in terms of geographical regions and regulatory frameworks to obtain the best possible balance between output and growth. As one of the major highlights of the first half of 2010, the Crown Estate, which supervises state-owned land in the UK, granted EDPR the contract for an area in the Moray Firth (Scotland) to develop off-shore wind farms with installed capacity of almost 1.3 – 1,5 GW. This concession forms part of the UK Round 3 awards and EDP Renewables was granted the operation through a company in which it owns a 75% stake.

In continental Europe, the purchase of 520 MW in wind power projects in Italy and the sale of Green Certificates generated by the company’s 120 MW Margonin wind farm in Poland are both worth highlighting. This last achievement allows the company to guarantee a significant part of its revenues in the Polish market. In Spain, the Cantabria Regional Government recently awarded EDP Renewables maximum power of 220 MW in the A zone of Campoo-Los Valles within the framework of the wind power tender initiated by the region at the beginning of the year. EDP Renewables was awarded the largest share of all participants in the tender.

In the US, EDP Renewables signed a 20-year PPA to provide 115 MW of renewable wind power to the Tennessee Valley Authority (TVA), to be supplied from the first phase of the Pioneer Prairie Wind Farm, located in Iowa. The company was also awarded a contract by the New York State Energy Research and Development Authority (NYSERDA) in conjunction with the Public Service Commission (PSC) to sell renewable energy credits for ten years equivalent to 171 MW from its Marble River Wind Farm, currently under development in Clinton County, New York.