Profits at EDPR Wind Power have dropped 56% as a result of reduced asset sales.

EDP Renovaveis, a wind energy producer, reported on Wednesday that its first-half profits fell 56% from a year earlier, despite boosting power production. This was due to the fact that it sold less assets.

EDPR is the fourth largest wind energy producer in the world. It reported that it had only booked 12 million euros ($13.87) in capital gains in the first six months, compared with 171 million euros a few years ago. This was part of a strategic plan to sell stakes in older plants in order to fund new ones.

It said that it expected to record more capital gains during the second half of the year and its stock price increased by about 1% on the opening day.

EDPR's net profit, the renewables arm for Portugal's largest utility EDP, dropped to 93 millions euros, lower than the 118 million euros average analyst forecast by LSEG.

EDPR reported that, excluding the reduced gains on asset sales, recurring net profits rose by 80 millions euros. This reflects a "significant increase in the profitability and efficiency of the operating assets portfolio" due to increased production levels.

It said that revenues grew by 18%, to 1.4 billion euro, supported by an increase of 12% in power production, to 21.2 Terawatt-hours. North America represented 60% of the total generation output, and Europe 27%.

The company's earnings were down 1% year-on-year to 948 millions euros. This was in line with expectations.

Excluding capital gains, recurring EBITDA grew 20%.

EDPR operates in 28 different countries in Europe, North America, and Asia. In June, its installed capacity reached 19.6 gigawatts. This is an increase of 3 GW compared to a year earlier.

North America accounted for over 50% of the total installed capacity. Europe represented 35%.

EDPR reported that it had 2.3 GW under construction, "that were on schedule and within budget to support the expected capacity increases of around 2 GW by 2025".

(source: Reuters)