Portugal's largest utility, EDP (EDP.LS), reported a 75% increase in net profit for the first half of the year, driven by capital gains in its renewables subsidiary and earnings from its Brazilian unit following a successful full takeover. Net income for the period reached €762 million ($824 million), surpassing the analyst forecast of €738 million.
EDP Renovaveis (EDPR.LS), the world's fourth-largest wind energy producer, saw its profit more than double to €354 million. This surge was attributed to capital gains from the sale of older assets and a rebound in electricity revenues. EDP also recorded €243 million in capital gains from the sale of renewable energy parks and transmission assets in Brazil.
Recurring net profit increased by 50% to €775 million, buoyed by the enhanced contribution from its Brazilian operations after completing the buyout of EDP Brasil minorities in August.
Power generation at EDP rose 6% to 30,903 gigawatt-hours (GWh), with renewable sources accounting for 98% of this output. Hydro generation in Iberia climbed 65% to 7,782 GWh, aided by strong rainfall, although lower power prices, including a 56% drop in the Spanish spot electricity price, impacted revenues.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 10% to approximately €2.7 billion, surpassing the €2.6 billion anticipated by analysts. EDP reiterated its full-year guidance of around €5 billion in recurring EBITDA and €1.3 billion in recurring net profit.
