EDP triples second-quarter earnings

Energias de Portugal (EDP), the Portuguese electricity and gas giant, turned in an outstanding performance in the second quarter of the current year.
Net profit amounted to 408 million euros, tripling from 134 million euros in the same period last year.
This significant rise was mainly due to increased production of renewable energies, including hydroelectricity, wind power and solar energy.

Ramping up Renewable Energies

EDP’s profits rose significantly in the first six months of the year, reaching 762 million euros, an increase of 75%.
Group CEO Miguel Stilwell de Andrade points out that renewable energies play a key role in this performance, enabling a substantial reduction in fossil-fuel-based electricity generation.
The Group also benefited from the rotation of its assets, a strategy that should continue to generate gains in the second half of the year.
The EDP Renováveis entity, dedicated to renewable energies, also posted strong growth.
Its first-half net profit reached 210 million euros, compared with 80 million euros for the same period in 2023.
This growth demonstrates EDP’s commitment to the energy transition and the expansion of its portfolio of renewable projects.

Financial Results and Outlook

EDP’s EBITDA rose by 8% year-on-year to 2.6 billion euros.
On the strength of these results, EDP’s management is forecasting a net profit of around 1.3 billion euros for the full year, compared with 1.2 billion euros the previous year.
However, EDP’s debt has increased by 14% since the end of last year, reaching 17.4 billion euros.
This increase is due to ongoing investment in renewable energy infrastructure and the expansion of the Group’s global activities.

Market reactions

On the Lisbon Stock Exchange, EDP shares ended slightly down by 0.3% at 3.80 euros.
Similarly, shares in subsidiary EDP Renováveis fell by 1.71% to 14.36 euros.
These fluctuations reflect the market’s concerns about increasing debt, despite the company’s solid financial performance.

Prospects and challenges

The expansion of renewable energies remains central to EDP’s strategy.
The Group continues to invest heavily in this sector, aiming to optimize its existing assets and reduce its carbon footprint.
This strategy is in line with the global objectives of energy transition and sustainable development.
However, debt management remains a crucial challenge for EDP.
The Group must balance its investments in renewables with rigorous financial management to ensure long-term sustainable growth.