EDP (EDP) H1 2024 earnings summary

Executive summary

• Net profit rose 50% year-over-year to €775m in 1H24, driven by strong renewables, asset rotation gains, and lower minorities in Brazil.

• Renewables accounted for 98% of total generation, with a 20% YoY increase in renewables output.

• Asset rotation strategy delivered €243m in gains, including major deals in Brazil, Italy, USA, and Canada.

• 97% of investment focused on renewables and electricity networks, mainly in Portugal, Spain, and Brazil.

• Strong performance in regulated electricity networks, especially in Brazil, supported by minority buyout and asset rotation gains.

Financial highlights

• Recurring EBITDA reached €2.7bn, up 8% YoY, with €243m in asset rotation gains.

• Wind & Solar EBITDA grew 27% YoY, with €171m in asset rotation gains.

• Electricity networks EBITDA increased 15% YoY, mainly from asset rotation gains in Brazil.

• Net financial costs rose 8–11% YoY, impacted by higher average net debt and prior-year US dollar pre-hedge settlement.

• Net debt increased to €17.4bn due to expansion investments and dividend payment; FFO/Net Debt at ~19%.

Outlook and guidance

• Recurring net profit guidance for 2024 reiterated at ~€1.3bn, with recurring EBITDA target of ~€5bn.

• Integrated generation and supply Iberia EBITDA expected to be in line with 2023.

• 2025-26 forward electricity prices and hedging strategies support guidance assumptions.

• Distribution concession renewals in Brazil progressing, with EDP ES contract expected to be signed in 1H25.

• Further asset rotation and tax equity transactions planned for 2H24.