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Revenue: Not explicitly mentioned in the transcript.
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EBITDA: Stable year on year at EUR3.9 billion.
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Net Profit: Increased by around 7% to almost EUR1.1 billion.
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Renewables Generation: 97% of EDP’s generation from renewable sources; increased 18% year on year.
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Hydro Generation: Increased 66% year on year, reaching 9.4 terawatt hours.
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EBITDA from Integrated Iberian Generation: Increased 15% excluding coal deconsolidation impact.
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Electricity Networks EBITDA: Increased 14% year on year; represents 33% of total EBITDA.
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Cost of Debt: Decreased from 4.9% to 4.5%.
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Net Debt: EUR17.3 billion.
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OpEx: Decreased 2% year on year.
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Installed Capacity: Increased 11% year on year.
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Asset Rotation Gains: Lower by EUR179 million compared to the previous year.
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Recurring Net Profit: EUR1.1 billion, with a 21% increase in underlying net profit.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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EDP SA (EDPFY) achieved a 97% renewable generation in the first nine months of 2024, highlighting significant progress in decarbonization.
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The company reported a 7% increase in net profit, reaching nearly EUR1.1 billion, supported by improved performance below EBITA.
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Hydro generation increased by 66% year-on-year, reflecting strong hydro resources and contributing to a stable EBITA of EUR3.9 billion.
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EDP SA (EDPFY) is well-positioned to capitalize on data center growth opportunities in Iberia, with more than two gigawatts of grid access opportunities.
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The company maintains a strong focus on efficiency, with OpEx decreasing by 2% year-on-year, contributing to improved financial performance.
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Lower asset rotation gains impacted the renewables segment, with a 10% decrease in EBITA year-on-year.
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The company faces potential risks from the CMEC judicial case in Portugal, although EDP SA (EDPFY) maintains that the risk of any indirect penalty is remote.
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Operational execution since 2020 has faced challenges, with some delays in installation pace and operational issues.
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The Brazilian Real’s depreciation has limited impact due to local currency funding, but it still affects net income.
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Asset rotation gains are expected to face short-term pressure, with similar impacts anticipated in the next couple of transactions for 2025.
Q: Can you provide insights into EDP’s growth strategy, especially considering the flat net profit growth outlook? A: Rui Teixeira, CFO, stated that EDP is comfortable with the 2025 consensus and emphasized the value of their diversified portfolio. He mentioned plans to increase investment in networks by 50% and highlighted the potential for growth in renewables, particularly in the US. He also noted that EDP has the flexibility to pivot between different parts of their business across various geographies.
