Portuguese energy group Energias de Portugal (EDP) announced a net profit of €428 million ($461mn) for the first quarter of the year, up 21% compared to the same period in 2024. This increase was driven by a 13% growth in installed renewable capacity and a 5% rise in total electricity production.
The group also benefited from favourable market conditions, notably higher electricity prices in the United States and the Iberian market. Earnings before interest, taxes, depreciation and amortisation (Ebitda) reached €1.4 billion ($1.51bn), a 6% year-on-year increase, according to results published on May 9.
Debt increases despite strong performance
EDP’s net debt stood at €16.1 billion ($17.35bn) at the end of March, a 4% rise compared to the end of 2024. The group, formerly state-owned, is now 21% controlled by Chinese state-owned enterprise China Three Gorges. Despite this debt increase, EDP continues its investment strategy in generation and distribution infrastructure.
EDP Chief Executive Officer Miguel Stilwell told news agency Lusa that the company had “a strong and sustainable strategy” and had “successfully adapted the pace of investment to market dynamics”. He also highlighted the need for a more resilient system to address technical challenges within the network.
Renewables subsidiary sees decline
The group’s renewables-focused subsidiary posted a net profit of €52 million ($56mn) in the first quarter, down 24% year-on-year. No specific details were provided to explain this decline, though management noted the increasingly complex operating environment in the sector.
Asked about the electricity blackout that affected the Iberian Peninsula on April 28, Miguel Stilwell advocated for grid modernisation. He said “the development of renewable energies must be accompanied by greater sophistication of the electrical system to create a clean, reliable and affordable network”.
Positive market response
Financial markets responded positively to the results. EDP shares rose 5.48% on Friday morning on the Lisbon Stock Exchange, reaching €3.36. Its renewables subsidiary gained 3.7% to €8.4. These valuations reflect ongoing investor confidence in the group’s strategic direction.
