EDP Renováveis (EDPR) Q3 2024 earnings summary

Executive summary

• Electricity generation increased 5% year-over-year to 26.5 TWh, led by North America, with 3.0 GW of new capacity added, especially in US solar.

• Revenues grew 5% year-over-year, reaching €1,731m, despite a 4% drop in average selling price to €59.4/MWh, supported by hedging and resilient US and Brazilian prices.

• Recurring EBITDA rose 7% year-over-year to €1,294m, but recurring net profit fell 55% to €210m, mainly due to lower asset rotation gains.

• Asset rotation program closed four transactions totaling 1.1 GW, generating €1.5bn in proceeds, though capital gains were lower year-over-year.

• Net debt increased by €2.0bn to €7.8bn, mainly due to expansion investments.

Financial highlights

• EBITDA reached €1.3bn, up 7% year-over-year excluding asset rotation gains; EBITDA margin fell to 75% from 86% YoY.

• Average selling price was €59.4/MWh, down 4% year-over-year, with electricity sales up 1% to €1,576m.

• Core OPEX per average MW in operation declined 7% year-over-year to €36.6k, reflecting efficiency improvements.

• Net debt/LTM EBITDA increased to 4.6x from 3.2x at Dec-23; average cost of debt reduced to 4.5%.

• Effective tax rate at 16% due to asset rotation gains tax treatment.

Outlook and guidance

• Full-year 2024 generation expected between 35–36 TWh, below previous guidance, due to resource and timing issues.

• FY24 capacity additions expected at ~4 GW, with ~1 GW already mechanically complete in the US.

• Average selling price for 2024 expected in the high €50s/MWh.

• EBITDA for 2024 likely below previous €1.9bn guidance, with net profit expected around €250m.

• 2025–26 supply chain fully secured, with high local content and storage targets under long-term contracts.