EDP Renewables 9M 2014 results

EDP Renewables (Euronext: EDPR), a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer, announced that in the first nine months of 2014, the company delivered 14.4 TWh of clean energy, an output increase of 5% YoY (+0.6 TWh), on the back of capacity growth (+0.4 TWh), as well as a stable wind resource YoY (+0.2 TWh), with a 9M14 load factor of 29%.

As of 30 September 2014, EDPR managed a total installed capacity of 8.6 GW spread over 10 countries. Over the past 12 months EDPR added 373 MW to its total installed capacity.

In 9M14, revenues totalled €930m (-4% YoY) on the back of a lower selling price for electricity in Europe and forex differences (-€10m, mainly USD and BRL). EBITDA decreased 6% YoY to €648m (70% EBITDA margin).

The average selling price in the period was 8% lower YoY (€59/MWh). The positive impact of the increase on the average selling price in North America (+4% YoY) and Brazil (+11% YoY) was offset by the lower average selling price in Europe (-13% YoY), mainly due to regulatory changes in Spain.

EBIT fell by 11% YoY as a result of EBITDA performance and the 1% YoY increase in depreciation and amortisation costs (including impairments and net of government grants).

All in all, Net Profit decreased 45% YoY to €56m, and Adjusted Net Profit also decreased 43% YoY to €56m (adjusted for non-recurring events, forex differences and capital gains).

In the 9M14, the Operating Cash-Flow totalled €549m (stable vs. 9M13), higher than the net investments in the period (€244m) and the payments to PP&E suppliers (€158m).

There were significant milestones in the third quarter of 2014 that confirm, among many other achievements, the excellent path the company is following. The asset rotation programme is already 60% executed (€0.4bn) as of 30 September 2014, thanks mainly to the last two major asset rotation transactions conducted by the company: The sale of a minority cash equity interest in a US wind portfolio to Fiera Axium in August 2014; and the sale of an equity shareholding and outstanding shareholders loans in an operating wind farm portfolio to a fund led by EFG Hermes in October. Completion of both transactions is subject to regulatory approval and other conditions. The execution of these transactions position EDPR a step closer to its asset rotation target to be met in 2017. The company also achieved operating excellence with an availability rate of 97.5% and a robust management of costs.

The company will continue to forge ahead based on the three cornerstones of its strategic plan 2014-2017: selective growth, operating excellence and a self-funded business


EDP Renewables (Euronext: EDPR), Headquartered in Madrid, is a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer. With a sound development pipeline, first class assets and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is currently present in 12 markets (Belgium, Brazil, Canada, Spain, the US, France, Italy, Mexico, Poland, Portugal, the UK and Romania). Energias de Portugal, S.A. (“EDP”), the majority shareholder of EDPR, is a global energy company and a leader in value creation, innovation and sustainability. EDP is Portugal’s largest industrial group and the only Portuguese company to form part of the Dow Jones Sustainability Indexes (World and STOXX).