February 28 (Renewables Now) - EDP Renovaveis SA (ELI:EDPR), or EDP Renewables, on Wednesday posted a 14% year-on-year increase in 2018 net profit, to EUR 313 million (USD 356m), even as revenues slipped because selling prices for power declined.
Earnings before interest, tax, depreciation and amortisation (EBITDA) registered a 5% drop in annual terms to EUR 1.3 billion as a result of top-line discontinuities, a negative impact from a foreign exchange (forex) losses and low wind conditions. Revenues declined by 7% to EUR 1.7 billion, hit by a 9% drop in average selling prices, forex effects and the scheduled expiration of specific tax equity structures in the form of 10-year Production Tax Credits (PTCs) in the US.
CEO Joao Manso Neto said that the company benefited from a stable performance of net interest costs, lower institutional partnership costs and gains from selling stakes in certain offshore projects. “We are committed to continue growing the business through efficient management models and limiting risks, as well as diversifying our ability to generate value through both the markets and technology,” he added.
EDPR’s board of directors has proposed a dividend allocation of EUR 61.1 million for 2018, or EUR 0.07 per share.
As of December 2018, the renewables arm of Portuguese utility EDP (ELI:EDP), had 11.7 GW of renewable energy assets under management, of which 11.3 GW fully consolidated. Some 371 MW refer to equity stakes in Spain and the US. In the past year, EDPR brought online 826 MW of plants, the bulk of which, 478 MW, in North America, while 211 MW and 137 MW were put on stream in Europe and Brazil, respectively.
The company’s renewables plants generated 28.4 TWh of electricity in 2018, or 3% more than in the previous year, thanks to newly-commissioned capacity with a higher expected load factor.
(EUR 1.0 = USD 1.137)