EDP sold Mascarenhas, its 198 MW hydroelectric plant located on the Doce River, in the state of Espirito Santo. With this operation, the company wishes to balance the management of its portfolio. The buyer, the London-based GSEO group, has committed to keeping the current site maintenance team.
EDP paid 800 million Brazilian reals at the closing of the transaction out of a total of 1,225 billion Brazilian reals. GSEO will settle the balance in accordance with the hydroelectric plant lease renewal standards.
EDP consolidates its financial strength
With this sale, EDP has achieved its objectives of rotating its generation assets as they mature.
Henrique Freire, CFO of EDP Brazil, confirms the group’s commitment to optimal financial management. He states:
“The announcement of this sale further demonstrates our commitment to generating value for our shareholders, maintaining our financial discipline and a strong balance sheet.”
As of June 2022, the shareholders’ equity of the Mascarenhas hydroelectric plant amounted to BRL 263.5 million. EBITDA was 176.5 million reals in the last 12 months.
Growing investment in solar energy
The sale of the hydroelectric plant is part of EDP’s strategic planning cycle between 2021 and 2025. The company plans to reach 1 GW of photovoltaic capacity in Brazil during this period.
João Marques Da Cruz, Managing Director of EDP Brazil, comments:
“We are pleased to announce that with this transaction, aligned with our portfolio diversification strategy, we will be able to de-risk hydro and expand our investment in solar.”
To this end, the group has already announced the construction of the Monte Verde plant in Rio Grande do Norte and the Novo Oriente plant in São Paulo. The capacity of these plants is estimated at 209 and 254 MWac.
