Portugal’s largest utility EDP, whose major shareholder is China Three Gorges, reported a 40% jump in 2023 net profit, driven by higher hydroelectric production and more earnings from its Brazilian business.
EDP-Energias de Portugal netted EUR 950 million, while its wind and solar unit EDP Renovaveis saw profts drop 50% to EUR 309 million as revenues fell.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 11% to around EUR 5 billion, EDP reported.
EDP said in a statement that non-recurring losses, such as impairments linked to a thermal power plant in Brazil and wind energy projects in Colombia, increased 40% to EUR 952 million in 2023.
Excluding one-offs, net income would have reached EUR 1.3 billion, it said, “supported by the hydro production recovery in Portugal to levels in line with historical average after an extreme drought in 2022, and an increase in results from Brazil”.
EDP last August acquired full ownership of EDP Brasil, in which it previously held a 56% stake.
EDP Increases Stake in EDP Brasil to 88% With EUR 821 Million Investment
The company led by Miguel Stilwell (pictured above) said it would propose a dividend of 0.195 euros per share for 2023, up from 0.19 euros paid the previous year.
In another statement, EDP Renewables said it remained on track with its Business Plan and in 2023 added 2.5 GW of installed renewable assets worldwide, reaching a total capacity of 16.6 GW, through an acceleration of sustainable investment.
“In the fourth quarter of 2023, EDPR achieved a record installation of an additional 1.7 GW.Of this capacity, close to 1.5 GW is from solar utility-scale and 1 GW from onshore wind”, the company said.
By 2024, EDPR expects to add more clean energy capacity to reach more than 4 GW of additional installed capacity, of which 85% is under construction and 15% is expected to start construction in the coming months.
“In the 2023 financial year, EDP Renewables has continued to implement its asset rotation strategy set out in the 2023-2026 business plan, as it allows it to accelerate the creation of value in its assets, as well as facilitating the reinvestment of capital for renewable growth in new projects”, the company said.
Thus, the solid execution of the asset rotation strategy has led to the conclusion of three operations for a total of 0.7 GW of capacity distributed in Spain, Poland and Brazil, it added.
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