Energias de Portugal (EDP), has published its financial results for the third quarter of 2023, showing an outstanding performance.
Recovery of Hydroelectric Production
During this period, the company recorded a net profit of 509 million euros, up 141% on the third quarter of the previous year. This impressive growth in profits is largely due to the resumption of hydroelectric production in Portugal.
Factors contributing to earnings growth
The year 2022 was marked by a severe drought, which led to a significant drop in hydroelectric production. However, in the third quarter of 2023, hydropower production in Portugal increased by a spectacular 61%, making a significant contribution to EDP’s profitability.
Increase in the share of renewable energies
In the first nine months of the year, EDP posted a net profit of 946 million euros, an impressive 83% increase on the same period last year. In addition to the upturn in hydropower production, other factors contributed to this performance, notably the takeover bid for its subsidiary EDP Brasil and the sale of assets in Spain and Poland.
Despite an 11% fall in electricity production in the first nine months of the year, the share of renewable energies in EDP’s portfolio increased to 85%. Gross operating income (EBITDA) was also up a solid 25%, reaching 3.05 billion euros in the first nine months. In addition, EBITDA from EDP’s renewable energies activities jumped 40% to €1.93 billion.
Debt Management and Strategic Investments
However, the Group’s net debt increased by 28% compared with the end of 2022, standing at 16.92 billion euros at the end of September. This increase can be explained in part by the major investments made by EDP to increase its installed capacity for generating electricity from renewable sources. In all, the Group has invested 3.15 billion euros since the beginning of the year, particularly in the United States, Brazil and other European countries. Its installed capacity for generating electricity from renewable sources now stands at 22,619 megawatts, an increase of 401 megawatts in the space of a year.
Energias de Portugal (EDP) achieved an impressive financial performance in the third quarter of 2023, with a sharp rise in profits, mainly attributable to the recovery of hydroelectric production in Portugal. Despite the financial challenges, the Group continues to invest in renewable energies and to strengthen its position in the global energy market.
