EDP Renewables 1Q 2019 results: Revenues at €521m and reaching €385m of EBITDA

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EDP Renewables 1Q 2019 results: Revenues at €521m and reaching €385m of EBITDA

Wednesday 08, May 2019

The operating portfolio, spread over 11 countries, amounts to 11.7 GW after 703 MW were added to the installed capacity over the last twelve months. The company reached clean energy production levels of 8.4 TWh, avoiding 5.9 mt of CO2 emissions.

Madrid, 8 May 2019: EDP Renewables (Euronext: EDPR), a global leader in the renewable energy sector and one of the largest wind energy producers in the world, announced today that revenues for the 1Q19 amounted to €521 million (-1% YoY) as a result of lower wind resource, versus an outstanding wind resource in the 1Q18, and 10-year PTC expected discontinuity, with both effects being mitigated by higher capacity in operation, higher average selling price and positive forex translation.

Other operating income amounted to €25m (+€13m YoY), with YoY evolution reflecting mainly the additional gains (+€10m) from the Dec-18 sale of 80% stake, in a 499-MW portfolio in North America, and materialised in the 1Q19.

Reported EBITDA for 1Q19 totalled €385m (+1% YoY), and EBIT reached €233m (vs €252m in 1Q18). Net Financial Expenses increased to €96m (vs €53m in 1Q18) with YoY comparison impacted by the €15m gain accounted in 1Q18 from the sell-down of a stake in a UK offshore project and by €7m from the treatment of new leases under IFRS16 in the 1Q19, along with higher average debt and interest rate given the different currency mix. Non-controlling interests in the period totalled €40m, decreasing by €23m YoY as a result of top-line performance of wind farms. At the bottom line, Net Profit came to €61m (vs €94m in the 1Q18).

In 1Q19, Net Debt totalled €3,615m (+€556m vs December 2018), reflecting cash generated by the assets on the one hand, and investments in the period and forex translation on the other. Institutional Partnership Liabilities reached €1,267m (unchanged year-to-date), with benefits captured by the projects and tax equity partners offset by forex translation, (-$30m in local currency vs December 2018).

João Manso Neto, CEO of EDPR said: “Our EBITDA remained solid despite the company's first quarter performance being impacted YoY due to the comparison between significantly higher 1Q18 wind resources and especially lower wind resources in 1Q19, along with expected PTCs phase-out. In operating terms, the company has been delivering its growth objectives, considerably surpassing its targets. EDPR already has more than 40% of the 7.0 GW build-out target capacity secured for 2019-22, which includes not only onshore but also offshore and solar – technology and geo diversification.”

Operating results

As of 31 March 2019, EDPR managed a global portfolio of 11.7 GW spread over 11 countries, 11.3 GW of which were fully consolidated and 371 MW were equity consolidated (equity stakes in Spain and the US). Over the last twelve months, EDPR’s portfolio increased by 703 MW, namely 318 MW in North America, 249 MW in Europe and 137 MW in Brazil. In the 1Q19, EDPR built 62 MW, all in Europe, namely 47 MW in Portugal and 15 MW in France, and initiated the dismantling and repowering of a 24 MW wind farm in the north of Spain, resulting in +38 MW YTD. As of March 2019, EDPR had 684 MW of new capacity under construction.

Power production reached 8.4 TWh of clean electricity (-4% YoY), avoiding 5.9 MT of CO2 emissions. The YoY evolution was affected by a wind resource below average (34% vs 38% in the 1Q18; 1Q19 at 93% of LT avg. vs 105% in 1Q18) partially offset by capacity additions over the last 12 months (+663 EBITDA MW YoY).

The average selling price increased by 3% YoY, driven by Western Europe price recovery, higher prices secured in the US and the currency exchange.