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 profit had fallen by 24% despite an increase in revenue. This was because it did not have any capital gains, unlike the previous year.
The net profit of Portugal's EDP, the renewables division, fell to 52 millions euros ($58.78) - slightly less than the average 54.8 million euro forecast by LSEG analysts.
In the first quarter, the company reported that it had not booked any capital gains on the sale of assets such as wind and solar. This is part of the strategy to dispose of stakes in mature plants in order to finance new ones. It had capital gains of 58 million euro a year earlier.
The company said that the overall 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 increased 5% on an annual basis to 476 millions euros, exceeding the average forecast (466 million euros).
Excluding capital gains, recurring EBITDA grew 20%.
EDPR operates in 28 countries in Europe, Asia, and the Americas. In March, its installed capacity was 19,3 GW. This is an increase of about 2.8 GW compared to a year earlier.
As of March, the capacity of new wind farms and solar farms under construction was 2.4 GW. Of this, 2 GW will be added in 2018, with 80% being added in Europe and United States.
(source: Reuters)
