Portugal's largest utility, EDP (Energias de Portugal), revealed an impressive 83% surge in net profit for the first nine months of the year. This substantial growth was attributed to higher hydroelectric production in the Iberian region and increased earnings following a successful full takeover of its Brazilian subsidiary.
EDP disclosed that its consolidated net income climbed to 946 million euros (approximately $1.01 billion). Revenues also exhibited a notable increase, rising by 19% to reach 5.16 billion euros. Furthermore, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) expanded by 25% to a total of 3.82 billion euros.
One key contributor to EDP's strong performance was the remarkable 61% growth in hydroelectric generation in Portugal and Spain, marking a significant recovery from the challenges posed by a severe drought the previous year.
In late August, EDP achieved full control of EDP Brasil, its Brazilian unit, following a takeover. This transition saw EDP's ownership of the capital rise from approximately 56% to a complete 100%. The consolidation of EDP Brasil's operations significantly boosted the group's earnings.
Additionally, EDP reported gains resulting from the sale of wind farms in Spain and Poland. EDP's subsidiary, EDP Renovaveis (EDPR), which focuses on wind and solar energy, independently reported a 7% increase in net profit, reaching 445 million euros during the first three quarters of the year.
EDP's robust financial performance underscores the positive impact of increased hydroelectric production, successful consolidation of its Brazilian unit, and strategic asset sales in Spain and Poland.