Madrid, 7 May 2020: 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 the company’s result for the first three months of 2020 with a Net Profit of €62m (+2% YoY). Revenues for the 1Q20 amounted to €487 million (-7% YoY), where impact from capacity MW (-€45m YoY) and wind resource (-€16 m YoY) were not offset by higher selling prices (+€15m YoY) along with positive impact from forex translation and others (+€12m YoY).

Other operating income amounted to €25m (vs €25m in 1Q19). Operating Costs (Opex) totalled €172 m (+7% YoY). In comparable terms, adjusted by Sell-down, offshore costs (cross charged to projects SPVs), one offs and forex, Core Opex per average MW was +4 YoY.

Reported EBITDA totalled €340m (-12% YoY) and EBIT €195m (vs €235m in 1Q19) with Sell-down transactions having a positive impact of -€16m in D&A partially compensated by new capacity. Net Financial Expenses decreased to €80m (-€16 m vs 1Q19) with YoY comparison impacted by lower debt along with lower average cost of debt in the period. At the bottom line, Net Profit came to €62m (+2% YoY).

In 1Q20, Net Debt totalled €2,683m (-€120m vs Dec-19), reflecting assets cash generated and the execution of EDPR’s Sell-down strategy. Institutional Partnership Liabilities amounted to €1.448 m (vs €1.3 bn in Dec-19) with benefits captured by the projects and tax equity partners along with a new institutional tax equity financing in the period.

João Manso Neto, CEO of EDPR said: “The company has published a solid Net Profit with hedging gains and portfolio performance outpacing the lower wind resource. Our EBITDA remained solid despite the company's first quarter performance being impacted by the Sell-down process that we are carrying out aligned with our business plan. In operating terms, the company has been delivering its growth objectives, considerably surpassing its targets. EDPR already has 83% 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”.

“The crisis caused by the Covid-19 pandemic has not impacted our results for the first quarter of 2020. Our response plan was focused on the safety and health of our teams and on helping local communities, without altering our business plan or strategy", added Manso Neto.
 

Covid-19 Contingency Plan

EDPR activated a Contingency Plan for Covid-19 in early March 2020, including protection measures for employees and partners, initiatives to support local communities – with €786.000 donated to food banks, medical equipment, rapid testing kits and digital educational materials – and an operational response to minimise the spread of the virus and keep essential services in operation. During the lockdown period, the company has implemented home working measures with 20% of staff on site performing key duties under stricter Health and Safety standards. The firm is currently working on a recovery plan to guarantee the return to normality safe conditions. The impact on the operation of EDPR distribution network has been limited, with dispatch centres operating as usual and minimal shortages of availability. In terms of the effect on growth strategy, thanks to close collaboration with the supply chain, COD delays have been mitigated, reducing the effect on the fundamentals of the project. In summary the company has had an outstanding reaction and has achieved a reinforce the sustainability of our strategy.
 

Operating results

As of 31 March 2019, EDPR managed a global portfolio of 11.2 GW, 10.7GW of which were fully consolidated, and 550 MW were equity consolidated (equity stakes in Spain and the US). Since Mar 19 EDPR built a total of 827 MW, including the 50% participation in a 278 MW US solar portfolio. During such period, EDPR successfully completed Sell-downs totalling 1.3 GW and decommissioned 18 MW in Spain for the repowering of such wind farm. All in all, as of Mar-20, EDPR YoY consolidated portfolio net variation was negative by 484 MW.

In the period, pursuing its Sell-down strategy, EDPR successfully concluded the Sell-down of its entire ownership in the 137 MW Babilonia wind farm in Brazil, as announced in Jul-19. As of Mar-20 EDPR had 1.3 GW of new capacity under construction, of which 964 MW related to wind onshore and 330 MW from equity participations in offshore projects.

In the period, EDPR produced 7.8 TWh of clean electricity (-8% YoY), avoiding 5 mt of CO2 emissions. The YoY evolution comes in line with a lower installed capacity YoY following the execution of EDPR’s Sell-down strategy (3Q 19: 997 MW of European assets; 1Q 20: 137 MW in Brazil).

Activity post-results

Since the past 31st of March the Company has signed three new PPAs in Spain, Mexico and USA for 359MW and has contracted 83% of the ~7.0 GW targeted global capacity build-out for the 2019-2022 period, as communicated in the Strategic Update on March 12, 2019. EDPR continuously analyses and develops projects that meet its internal risk and profitability criteria.

EDPR's success in securing new PPAs reinforces its low-risk profile and growth strategy based on the development of competitive and innovative projects with long-term visibility.