EDP Renewables, the fourth largest company in the field of Renewable Energy Sources in the world, reaffirmed the positive course of its activities recorded since the beginning of the year, achieving a net profit of 265 million euros in the first half of 2022, by 87 % higher than last year. The positive performance is also reflected in EBITDA which reached 976 million euros, up 49% year-on-year, and EBIT which reached 640 million euros, 76% higher than last year.
The operating results also showed a positive development during the first half of the year. These performances, supported by a 16% increase in production compared to last year, are due to additional installed capacity and the strengthening of renewable energy sources. EDPR also achieved a record under-construction capacity of 3.2 GW on June 22 (with 1.8 GW of wind and 1.3 GW of solar), taking into account new capacity to be added in 2022 and 2023.
Installed capacity increased to 13.8 GW (up 1.2 GW year-on-year), with Europe and North America accounting for 40% and 51% of the portfolio, respectively. EDPR now has greater technological diversification with 12.2 GW of onshore wind, 1.3 GW of solar and 1.5 GW of gross offshore wind in operation.
It is worth noting that during the last 12 months EDPR added 2.5 GW of capacity. Following the completion of asset swap agreements in the US and Portugal in the second half of 2021 and in Poland and Spain in the first half of 2022, the net change in capacity compared to the previous year amounted to +1.2 GW. In the first half of 2022, additions amounted to 0.6 GW, mainly due to the successful integration of Sunseap’s assets in the Asia Pacific region, which now represent 3% of EDPR’s portfolio. Asset turnover amounted to 0.3 GW in Europe.
In addition, EDPR produced 17.8 TWh of clean energy in H1 2022 (up 16% year-on-year), avoiding 11 million tonnes of CO2 emissions, with Europe and North America accounting for 36% and 57% of total production, respectively. In Europe, production increased by 10% compared to last year, driven by higher installed capacity and the stability of renewables. In North America, production rose 12% year-on-year, reflecting better renewables in the US and Canada. In South America, production increased by 111% compared to the previous year due to higher installed capacity in Brazil, partially offset by a decline in renewables.
In H1 2022, EDPR achieved a 33% occupancy rate (up 2 percentage points year-on-year), reflecting a RES ratio of 2% higher than the expected long-term average Gross Capacity Factor (up 7 percentage points year-on-year base).
According to Miguel Stilwell d’Andrade, CEO of EDP Renewables: “Despite the complexity of the current situation, we have continued to implement our strategic plan 2021-25. The remarkable operating results recorded during the first half of the year, with the increase in our installed capacity, as well as the record number of capacity under construction, reflect the resilience and momentum of the company.Furthermore, we have ensured strong financial performance with significant growth, across our global spectrum, not only in revenue but also in net profits. We will continue to create value for our stakeholders and society as a whole.”
Financial results
EDPR’s revenue reached 1,237 million euros (45% year-on-year increase), i.e. 381 million euros more than the previous year. The average sale price increased by 27% compared to last year, mainly due to higher purchase prices in Europe and the impact of the Spanish regulatory update.
Other operating income amounted to €134 million (down €6 million year-on-year) and mainly related to the asset swap transactions completed in Poland and Spain. As part of EDPR’s continued growth, Operating Expenditure (Opex) reached €463 million (€132 million more year-on-year), given the upfront costs to support the expected growth in the coming years. In comparable terms, Core Opex per average MW, adjusted for offshore costs, one-off costs, service fees and foreign exchange, increased by 15% compared to last year.
In H1 2022, EBITDA was €976m (up 49% year-on-year) and EBIT was €640m (up 76% year-on-year), supported by solid top line performance . Net finance costs increased to €185m (up €74m year-on-year), with the year-on-year comparison affected by higher debt, the foreign exchange balance and the liquidation of TEI.
Overall Net Profits were €265m (up €87m yoy) partially offset by higher finance costs and non-controlling interests of €120m (up €87m yoy) in accordance with the increase in net profits) as a result of the positive performance of the NCI portfolio.
In terms of net debt, in June 2022, it amounted to €5,234 million (increased by €2,300 million compared to December 2021), reflecting on the one hand the significant increase in investments during the period, including the acquisition of Sunseap, and the exchange rate and on the one hand the assets that generate liquidity and the asset rotation strategy.
Institutional partnership liabilities amounted to €1,532 million (constant compared to December 2021), reflecting the benefits realized from the projects.
Source: Capital
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