Portugal's EDP posts 21% profit increase as Iberia rain boosts hydro

Portugal's largest utility EDP reported a stronger-than-expected 21% increase in first-quarter net profit on Friday, after heavy rainfall boosted hydroelectric output in Iberia, where power prices almost doubled.

Despite not making a capital profit in the quarter, the net profit grew to 428 millions euros. This was higher than the 368 million euro average estimate of an LSEG survey of analysts. It had 108 million euro worth of capital gains a year earlier.

EDP Renovaveis reported on Thursday a net profit of 52 million euros, a fall of 24%.

EDP stated in a press release that the total electricity production increased by 5%, to 18,300 gigawatt hours (GWh). This was due to "significant rainfall" in Iberia during the first quarter of the year which filled reservoirs to 88% capacity.

The average spot electricity prices in the Iberian region almost doubled from 85 euros per megawatt-per-hour to nearly 200 euros during the first quarter of this year.

Analysts had expected earnings before interest, tax, depreciation, and amortization (EBITDA) to rise 6%, to 1,42 billion euros. (Reporting and editing by Inti landauro and Kirsten Donovan; reporting by Sergio Goncalves)

(source: Reuters)