EDP Renovaveis Jan-Sep 2010 profit seen at EUR 30m - report

(ADPnews) - Nov 2, 2010 - Portuguese green energy company EDP Renovaveis (ELI:EDPR) is expected to post a net profit of EUR 30 million (USD 41.9m) for the nine months to September 2010, down 57% from the EUR 70.1 million for the same period a year ago.

According to the projections of seven analysts, asked by Reuters, the earnings results of the company were penalised by the financial costs and by the depreciation.

Helena Barbosa, analyst with Caixa Banco de Investimento (CaixaBI), notes, that despite the strength, the operating performance of the company will not be reflected in the "bottom line" due to the higher depreciation and the financial costs.

Deutsche Bank analyst, Virginia Sanz De Madrid, in turn, says that with the continuing increase of the depreciation every quarter, due to the new installations, and the rising financial costs, the bank does not see the earnings before interest and tax (EBIT) of the third quarter to be sufficient to cover the financial burden.

The average projection of the analysts for the earnings before interest, tax, depreciation and amortisation (EBITDA) stands at EUR 472 million, up 28% on the year.

EDP Renovaveis has already announced its output figures for the first nine months of the year. The company boosted its electricity production by 35% year-on-year to 9,818 GWh, while the installed capacity expanded by 28.5% on the year reaching 6,327 MW at end-September 2010. During the first nine months of the year, EDP Renovaveis added 478 MW capacity in the USA, 174 MW in Spain and 39 MW in France. Another 61 MW were installed by the wind power consortium ENEOP - Eolicas de Portugal.

The company will officially release its earnings results for the first nine months of the year on November 3.

(EUR 1.0 = USD 1.389)

Choose your newsletter by Renewables Now. Join for free!