July 27, 2022 (www.waternewswire.com) EDP Renewables (Euronext: EDPR), the fourth-largest renewable energy producer in the world, has reaffirmed the positive business trend it has reported since the beginning of the year, achieving a net profit of 265 million euros in 1H 2022, 87% more than last year. Also reflecting the positive performance is EBITDA, which summed at 976 million euros, up 49% interannually, and EBIT, which amounted to 640 million euros, 76% above last year, supported by top-line solid performance.
Operational results have also positively evolved throughout the first half of the year. This performance, supported by the 16% increase in generation compared to last year, was driven by additional installed capacity and stronger renewable resources. EDPR has also reached a record capacity under construction of 3.2 GW as of June 22 (with 1.8 GW of wind and 1.3 GW of solar), on the back of new capacity to be added in 2022 and 2023.
Installed capacity increased to 13.8 GW (up 1.2 GW interannually), with Europe and North America representing 40% and 51% of the portfolio, respectively. EDPR has now a higher technology diversification with 12.2 GW of wind onshore, 1.3 GW of solar and 1.5 GW of gross wind offshore in operation.
It is also worth noting that in the last 12 months, EDPR added 2.5 GW of capacity. Following the completion of the Asset rotation deals in the US and in Portugal in the second half of 2021 and in Poland and Spain in the first half of 2022, net capacity change compared to the previous year totaled +1.2 GW. In the 1H22, additions amounted to 0.6 GW, mainly driven by the successful integration of Sunseap assets in APAC, which now represent 3% of EDPR's portfolio. Asset rotation amounted to 0.3 GW in Europe.
Moreover, EDPR generated 17.8 TWh of clean energy in the 1H22 (up 16% interannually), avoiding 11 million tons of CO2 emissions, with Europe and North America representing 36% and 57% of total generation output, respectively. In Europe, generation increased 10% compared to last year, impacted by higher installed capacity and a stable renewable resource. In North America, the output is up 12% interannually, reflecting better renewable resources in the U.S. and Canada. In South America, production increased 111% compared to the previous year, driven by higher installed capacity in Brazil, partially offset by lower renewable resources.
In the 1H22, EDPR achieved a 33% load factor (up 2pp interannually), reflecting a Renewables index 2% higher than the expected long-term average Gross Capacity Factor (up 7pp interannually).
According to Miguel Stilwell d'Andrade, CEO of EDP Renewables: "Despite the complexity of the current context, we have continued to deliver on the roadmap set out in our 2021-25 strategic plan. The solid operational results recorded in the first half of the year, with the growth of our installed capacity as well as the record capacity under construction, are a true reflection of the resilience and strength of the company. Also, we achieved a strong financial performance with significant growth, across our global footprint, not only in revenues but also in net profit. We will continue to add value to our stakeholders and to society as a whole”.
EDPR revenues reached 1,237 million euros (up 45% interannually), i.e. up 381 million euros from the previous year. The average selling price increased 27% compared to last year, mainly driven by higher market prices in Europe and the impact from the Spanish regulatory framework update.
Other operating income amounted to 134 million euros (6 million euros less interannually), mainly related to the Asset rotation transactions closed in Poland and Spain. In the context of EDPR's continuous growth, Operating Costs (Opex) totaled 463 million euros (up 132 million euros interannually), given up-front costs to support expected growth over the coming years. In comparable terms, Core Opex per average MW adjusted by offshore costs, one-offs, service fees and forex increased 15% compared to last year.
In 1H22, EBITDA summed 976 million euros (up 49% interannually), and EBIT amounted to 640 million euros (up 76% interannually), supported by top-line solid performance. Net Financial Expenses increased to 185 million euros (up 74 million euros interannually) with year on year comparison impacted by higher debt, forex and TEI unwinding.
For its part, Net Profit summed at 265 million euros (up 87 million euros interannually), being partially offset by higher financial costs and non-controlling interests at 120 million euros (up 87 million euros interannually in line with net profit growth) as a result of positive top-line performance in NCI portfolio.
Regarding Net Debt, as of June 2022, it totaled 5,234 million euros (up 2,300 million euros compared to December 2021), reflecting, on the one hand, the strong increase of investments in the period, including the acquisition of Sunseap and forex translation and on the other hand assets cash generators and Asset rotation strategy.
Institutional Partnership Liabilities summed at 1,532 million euros (flat compared to December 2021), reflecting benefits captured by the projects.
About EDP Renewables (EDPR)
EDP Renewables (Euronext: EDPR) is the fourth-largest renewable energy producer worldwide, with a presence in 26 markets across Europe, North America, South America and the Asia Pacific. Based in Madrid and with main regional offices in Houston, São Paulo and Singapore, EDPR has a robust development portfolio with first-class assets and a market-leading operational capability in renewables. These include wind onshore, utility-scale & distributed solar, wind offshore (through its 50/50 JV - OW) and technologies complementary to renewables such as batteries and green hydrogen.
EDPR's employee-centered policies resulted in its recognition as a Top Workplace 2022 in the United States, Top Employer 2022 in Europe (Spain, Italy, France, Romania, Portugal and Poland) and Brazil, as well as its inclusion in the Bloomberg Gender-Equality Index.
EDPR is a division of EDP (Euronext: EDP), a leader in the energy transition with a focus on decarbonization. Besides its strong presence in renewables (with EDPR and hydro operations), EDP has an integrated utility presence in Portugal, Spain and Brazil, including electricity networks, client solutions and energy management.
About EDP Renewables North America (EDPR NA)
EDP Renewables North America LLC (EDPR NA), its affiliates, and its subsidiaries develop, construct, own, and operate wind farms and solar parks throughout North America. Headquartered in Houston, Texas, with 58 wind farms, nine solar parks, and eight regional offices across North America, EDPR NA has developed more than 8,800 megawatts (MW) and operates more than 8,200 MW of onshore utility-scale renewable energy projects. With more than 950 employees, EDPR NA's highly qualified team has a proven capacity to execute projects across the continent.
For more information, visit www.edpr.com/north-america.
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