EDPR posts a 14% rise in earnings in 2018 to reach a net profit of €313 million
EDPR produced 27.6 TWh of clean electricity, up 3% YoY.
Madrid, 27 February 2019: EDP Renewables (Euronext: EDPR), a global leader in the renewable energy sector and one of the largest wind energy producers in the world, has announced its full year results for 2018. At 31 December, the company managed a portfolio of operating assets of 11.7 GW spread over 11 different countries, of which 11.3 GW are fully consolidated and 371 MW equity consolidated (equity stakes in Spain and US). In 2018, EDPR built 826 MW, of which 478 MW were in North America, 211 MW in Europe and 137 MW in Brazil.
Between January and December 2018, EDPR supplied 28.4 TWh of clean electricity (+3% YoY), avoiding 19.8 mt of CO2 emissions. The increase in production benefitted mainly from the capacity additions (+625 MW EBITDA YoY) with a higher expected load factor. The achieved load factor in 2018 was 30% (-1pp YoY), representing 94% of the long-term average (P50 vs. 98% in 2017). In the period, EDPR maintained a high level of technical availability (97%), however is was lower YoY (2017 at 97.8%), due to adverse weather conditions in certain regions during the first quarter and higher maintenance at specific wind farms.
EDPR posted total revenue of €1,697 million in 2018 (-7% YoY), mainly due to higher generation (+3% YoY; +€38m YoY), a lower average selling price (-9% YoY; -€71m YoY), negative impact from Forex translation (-€46m YoY) and the scheduled expiration of specific tax equity structures in the form of 10-year PTCs (-€51m). Revenues totalled €1,697 million (-7% YoY). EBITDA reached €1,300 million (-5% YoY; -2% YoY ex-FX) impacted by top-line discontinuities, Forex and low wind resource.
Net Financial Expenses decreased to €220 million (vs €302m in 2017; -€82m YoY), mainly reflecting the stable YoY evolution of the net interest cost of debt (at €139m), lower institutional partnership costs (€81m; -€8m YoY) and gains from the sell down of stakes in offshore projects (€87m).
The company posted net profit of €313 million between January and December 2018 (+14 YoY). Non-controlling interests in the period totalled €159 million, decreasing by €22m YoY as a result of top-line performance.
EDPR CEO Joao Manso Neto said: “The results we’ve presented today, which include net profit growth of 14%, reflect the solid financial management of the company, which has benefitted from a stable YoY performance of net interest costs, lower institutional partnership costs and gains from the sell down of stakes in offshore projects”.
With regard to the company’s future growth, Manso Neto added: “We are committed to continue growing the business through efficient management models and limiting risks, as well as diversifying our ability to generate value through both the markets and technology”.
The Board of Directors of EDPR will propose a dividend distribution of €61.1 million, equivalent to 7 cents per share.