Wind energy company EDPR's profits fall 24% despite high revenues

EDP Renovaveis (the world's fourth-largest wind energy producer) announced on Thursday that its first quarter net profits fell by 24% despite an increase in revenue. This was because it had not made any capital gains during the period, unlike the year before.

Analysts polled by LSEG had predicted a net profit of 54.8 million euros for the renewables division, but it fell to 52.78 million euros.

The company reported that it had not booked any capital gains on the sale of solar and wind assets in the first quarter. This is part of the strategy to dispose of stakes in mature plants in order to finance new ones. It logged 58 millions euros of this kind of gain a year ago.

The company's revenues increased by 21%, to 763 millions euros. This was due to a 10% rise in the production of power to 10.9 gigawatt hours (GWh). "Europe and North America represent more than 80%" of its total output.

The EBITDA (earnings before interest, tax, depreciation, and amortization) of the company rose by 5% on an annual basis to 476 millions euros, exceeding the average forecast (466 million euros).

(source: Reuters)