BESI sees EDP Renovaveis profit up 39% Y/Y in H1 2011

Jul 20, 2011 - The net profit of Portuguese green energy company EDP Renovaveis (ELI:EDPR) is seen to have reached EUR 59.5 million (USD 84.5m) in the first half of 2011, up 39% year-on-year, according to estimates of Espirito Santo Investment Bank (BESI).

The firm is projected to have closed the period with earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 408.1 million, up 19% in annual terms, BESI said in a research note released yesterday.

The profit in the second quarter of 2011 alone is calculated at EUR 10.3 million.

EDP Renovaveis booked a 32% increase in production in the USA where the prices are lower, according to analysts with BESI. Thus, the projected EBITDA rise is smaller than the increase in the output, the specialists added.

EDP Renovaveis will release its half year earnings results on July 27.

BESI has a share price target of EUR 5.35 for the company and recommends "buy" on it. The stock market performance of EDP Renovaveis was affected by the sovereign debt crisis, the investment bank stressed. The company has depreciated 0.85% on the bourse since the beginning of 2011.

EDP Renovaveis' shares today won 2% to EUR 4.39 at 1255 local time on Euronext Lisbon.

(EUR 1 = USD 1.420)

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