popular articles

Results Down for Energias de Portugal Despite the “Renewables” Bet

Energias de Portugal (EDP) posts a 37% drop in profits for the third quarter of 2024. The Portuguese group nevertheless continues its investments in renewable energies to support its energy transition.

Please share:

The electricity and gas group Energias de Portugal (EDP) reported a significant decrease in profit for the third quarter of 2024, with a 37% decline, reaching 320 million euros. Despite this quarterly underperformance, the company is maintaining its strategy of massive investment in renewable energies, essential to its energy transition.

For the first nine months of the year, the group’s total profit stood at just over one billion euros, marking a 14% increase compared to the same period in 2023. This growth is primarily due to the strong performance of the electricity network management activities in Brazil, as well as the recovery of hydroelectric production in Spain and Portugal. This dynamic has allowed EDP to partially offset the mixed financial results of its renewables-focused subsidiary, EDP Renováveis (EDPR).

Increasing Investments in Renewables

Despite the challenges, EDP has allocated over 3 billion euros since the beginning of the year to various renewable energy production projects, including initiatives in Europe and Latin America. These investments are also focused on strengthening and developing its electricity networks, thus meeting the growing demands of the energy transition.

Within its subsidiary EDPR, which is particularly active in North America, profits dropped by 53% over the first three quarters of the year, amounting to 210 million euros. EDPR, with significant wind and solar capacities in the United States, faces increasing challenges in a political environment less favorable to clean energy, even though the sector remains promising.

Maintaining Prospects in the U.S. Market

Despite the election of American leaders favorable to fossil fuels, EDP remains cautiously optimistic about its development in the U.S. The United States remains a strategic market for the group, especially in renewables, due to the growing support from technology companies for clean energy.

The group’s cautious optimism relies on the pressure exerted by multinationals, particularly tech giants, for less polluting energy sources. Miguel Stilwell, EDP’s president, expressed this vision by highlighting that, despite political uncertainties, the renewable sector in the U.S. could continue to grow.

Significant Increase in Debt

Meanwhile, EDP’s debt continues to rise, up by 13% since the end of 2023. The total debt thus reached 17.3 billion euros at the end of September, a figure closely monitored by investors and analysts. This increase in liabilities raises questions about EDP’s ability to effectively manage its finances while maintaining high levels of investment.

At the Lisbon Stock Exchange, EDP’s disappointing results led to a 0.57% decline in its share price, to 3.30 euros per share. Similarly, its subsidiary EDPR’s stock fell by 2.67%, to 10.94 euros, reflecting market concerns regarding the short-term profitability of the significant investments made in the energy transition.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The National Financial Prosecutor's Office is investigating suspicions of public fund misappropriation involving EDF. Material benefits were allegedly granted to its former executives without any legal framework over several years.
Masdar strengthens its global energy portfolio with the acquisition of 70% of TERNA ENERGY, marking a key step in the strategic transfer of assets for Europe’s energy transition.
Masdar strengthens its global energy portfolio with the acquisition of 70% of TERNA ENERGY, marking a key step in the strategic transfer of assets for Europe’s energy transition.
Eni distributes over three million free shares to its employees
Eni distributes over three million free shares to its employees
Africa Oil Corporation increases its stake in Impact Oil & Gas to 39.5%, consolidating its investment strategy in the Orange Basin of Namibia, a key region for the oil sector.
Africa Oil Corporation increases its stake in Impact Oil & Gas to 39.5%, consolidating its investment strategy in the Orange Basin of Namibia, a key region for the oil sector.
The Indian conglomerate Adani suffered a record loss on the stock market after the indictment of Gautam Adani in the United States, accused of paying $250 million in bribes for solar projects in India.
Technip Energies, a key player in energy engineering, announces ambitious forecasts: over €8.6 billion in revenue by 2028 and strengthened diversification towards decarbonization and sustainable technologies.
Technip Energies, a key player in energy engineering, announces ambitious forecasts: over €8.6 billion in revenue by 2028 and strengthened diversification towards decarbonization and sustainable technologies.
Mark Noyes, a seasoned expert in renewable energy, joins TerraForm Power as CEO to steer the company’s growth strategy in the face of industry challenges and opportunities.
Mark Noyes, a seasoned expert in renewable energy, joins TerraForm Power as CEO to steer the company’s growth strategy in the face of industry challenges and opportunities.
Wood Mackenzie anticipates a protectionist shift under Trump’s presidency, marked by a retreat from net-zero ambitions. However, renewables and the IRA will continue shaping the U.S. energy future.
Wood Mackenzie anticipates a protectionist shift under Trump’s presidency, marked by a retreat from net-zero ambitions. However, renewables and the IRA will continue shaping the U.S. energy future.
The Italian group Enel plans to invest €43 billion by 2027, focusing on networks and renewable energies, while increasing dividends for its shareholders.
Hundreds of complaints highlight major failures at Primagaz due to a change in its IT system. The Energy Ombudsman demands immediate action to protect affected consumers.
Hundreds of complaints highlight major failures at Primagaz due to a change in its IT system. The Energy Ombudsman demands immediate action to protect affected consumers.
Despite a 3% drop in production for the third quarter of 2024, Boralex is pushing forward with new strategic renewable energy projects and strengthening its operational resilience.
Despite a 3% drop in production for the third quarter of 2024, Boralex is pushing forward with new strategic renewable energy projects and strengthening its operational resilience.
The new CEO of Schneider Electric, Olivier Blum, moves to Dubai to oversee growth in India and the Middle East, strategic regions for the company's energy and digital transition efforts.
The new CEO of Schneider Electric, Olivier Blum, moves to Dubai to oversee growth in India and the Middle East, strategic regions for the company's energy and digital transition efforts.
At COP29, TotalEnergies CEO Patrick Pouyanné defended the oil industry's commitment to reducing methane emissions, emphasizing the importance of gradual progress in addressing the climate crisis.
The French industrial giant Vallourec reported a slight drop in net income to €73 million in Q3 2024. This stability is attributed to its premiumization strategy and strong margins despite challenging market conditions.
The French industrial giant Vallourec reported a slight drop in net income to €73 million in Q3 2024. This stability is attributed to its premiumization strategy and strong margins despite challenging market conditions.
Nexans aims for increased financial performance by 2028, supported by significant investments in global electrification and a strategy focused on energy transition and recycling.
Nexans aims for increased financial performance by 2028, supported by significant investments in global electrification and a strategy focused on energy transition and recycling.
Masdar and KESH sign a strategic partnership to develop large-scale renewable energy projects, positioning Albania as a key player in the European energy market.
Masdar and KESH sign a strategic partnership to develop large-scale renewable energy projects, positioning Albania as a key player in the European energy market.
Polish energy giant Orlen partners with the European Investment Bank to modernize its energy distribution network, aiming to integrate renewable solutions and strengthen operational efficiency.
The Energy Infrastructure Partners (EIP) fund strengthens its investment in Plenitude, Eni's renewable energy subsidiary, valued at over 10 billion euros, to support its strategic growth.
The Energy Infrastructure Partners (EIP) fund strengthens its investment in Plenitude, Eni's renewable energy subsidiary, valued at over 10 billion euros, to support its strategic growth.
In the third quarter, Halliburton reports a 20% drop in net profit, mainly impacted by a cyberattack and slowing demand in North America, its key market.
In the third quarter, Halliburton reports a 20% drop in net profit, mainly impacted by a cyberattack and slowing demand in North America, its key market.
The Italian energy giant Enel announces a 38% increase in net profit over nine months, reaching 5.9 billion euros, despite a context of falling electricity prices.
The Italian energy giant Enel announces a 38% increase in net profit over nine months, reaching 5.9 billion euros, despite a context of falling electricity prices.
The Global Battery Alliance reveals the results of a collaborative project involving the world’s largest battery manufacturers to harmonize transparency and sustainability in the battery supply chain.
Engie targets the top of its 2024 forecasts after strong quarterly performance
Engie targets the top of its 2024 forecasts after strong quarterly performance
Akastor ASA acquires Mitsui's shares in AKOFS Offshore for USD 22.5 million, increasing its stake to 75% and consolidating its position in the subsea intervention sector.
Akastor ASA acquires Mitsui's shares in AKOFS Offshore for USD 22.5 million, increasing its stake to 75% and consolidating its position in the subsea intervention sector.
Struggling in 2022, German energy company Uniper initiates a 530 million euro repayment to the German state. This payment represents a significant step toward reducing public influence within the company.
Struggling in 2022, German energy company Uniper initiates a 530 million euro repayment to the German state. This payment represents a significant step toward reducing public influence within the company.

Advertising