EDP ​​profits down 16% in 2024

EDP's profits fell 16% to €801 million in 2024, with the company penalized by the cancellation of EDPR's wind projects in Colombia.

The recurring net result rose 8% on the back of the “strong performance of the energy production and management activity in the market and the increase in the contribution of electricity network activities in Brazil, which more than offset the reduction in the contribution” of EDPR.

The company highlights that recurring EBITDA exceeded 5 billion euros (-1%) in line with what was previously defined and that recurring net income reached 1.4 billion euros, above the 1.3 billion expected.

Proforma EBITDA fell 4% to 4.8 billion euros.

Net debt rose 2% to 15,565 million euros.

The board of directors will propose to shareholders an increase in the dividend from 19.5 cents to 20 cents per share, as already defined, representing a payout ratio of 60%, remaining within the minimum range of the target set for 2024-26.

The company also announced a share buyback program of up to 100 million euros over a three-month period, given the “good consolidated performance in 2024, the decision to slow down the investment plan and the update of performance expectations for 2025-2026.

Consolidated operating investment fell 19% to 4,745 million euros, with net expansion investment falling 29% to 2,836 million euros.

Of the total Capex, 39% went to North America, 15% to both Brazil and Portugal, 14% to the rest of Europe, and 12% to Spain.

By segment, wind/solar EBITDA fell 16% impacted by lower gains in asset rotation and a 3% drop in the average selling price of electricity.

The proforma EBITDA for production and sales in Iberia and Brazil rose 9%, driven by a 16% increase in hydroelectric production in Portugal.

The EBITDA of electricity networks rose 7% with the increase in electricity consumption in Brazil.

EDP ​​Renováveis ​​with losses of 550 million

EDP ​​Renováveis ​​recorded losses of 556 million euros in 2024 in terms of non-recurring net income, with impairments recorded in the offshore operation in the USA and the cancellation of the onshore wind operation in Colombia, the company announced on Wednesday.

On a recurring basis, the company saw profits plunge 57% to 221 million euros, with “operational performance not being sufficient to offset lower asset turnover gains vs. 2023 and higher financial results”.

Faced with losses, the company presented a plan to turn things around: over the next two years, the pace of new plants will fall to a total of 3.5 gigabytes, with Capex remaining at 3 billion euros this year and below this value in 2026.

In terms of asset rotation, the plan is to sell more than 2.5 gigabytes to raise more than 3 billion euros in 2025/2026.

The company highlighted the new power record reached in 2024: 3.8 gigabytes.

The company clarifies that it was negatively impacted by non-recurring items in the order of 777 million euros related to the “impairment in offshore in the USA, as well as the decision not to proceed with the remaining investments necessary to build the 0.5 gigawatt wind projects in Colombia, resulting in a total impact of 590 million euros between impairments, provisions for guarantees yet to be incurred and taxes”.

Regarding the US, he added that the impairment was 133 million euros at EDPR level due to a “preemptive decision by Ocean Winds”, the consortium with Engie, “in the offshore business in the US due to the uncertainty surrounding offshore projects in the US following the presidential executive orders issued on January 20”.

The company said revenues increased 4% to 2.32 billion with increased electricity production being “partially offset by lower prices”.

Non-recurring EBITDA fell 16% to more than 1.5 billion, with impairments and provisions rising more than 60% to more than 1.5 billion.

Regarding the dividend, the company will propose to its shareholders the “continuation of the Scrip Dividend program with a payout of 40%, which implies a dividend proposal of €8 cents per share”.

EDPR’s output rose 6% in 2024 compared to 2023, reaching over 36 TWh. The majority of this came from onshore wind (85%), with solar PV accounting for 15%. In 2024, new solar power accounted for almost 75% of new capacity.

EDP ​​Renewables’ (EDPR) US output soared 17% in 2024, reaching more than 18,000 GWh. The US accounted for 50% of EDPR’s electricity output last year, totaling 36,000 GWh.

In terms of installed capacity, EDPR has 44% of its installed power in the US (8.4 gigawatts out of 19.3 gigawatts in total), with the majority coming from onshore wind (over 5.9 gigawatts) and solar (2.5 gigawatts).