The company has 2.1 GW more in its portfolio than in the same period last year.
Noteworthy is the good performance of the business in Europe and Brazil as well as the good visibility of growth in the short term and the solid asset rotation strategy implemented.
EBITDA amounted to EUR 654 million (-13% vs. the first quarter of 2020), impacted by various factors such as the weather phenomenon in the US, which also affected net profit to EUR 142 million (-44%).
EDP Renewables (Euronext: EDPR), global leader in the renewable energy sector and the world’s fourth largest renewable energy producer, has continued to boost its operating portfolio in the first half of the year reaching 12.6 GW, which means that it has 2.1 GW more than in the same period of the previous year. Of this total, 11.7 GW are fully consolidated and 841 MW equity consolidated (stakes in projects in Spain, Portugal, USA, as well as offshore projects).
In particular, EDPR has added a total of 691 MW of wind and solar capacity since December 2020, of which 648 MW have been fully consolidated, namely 83 MW in Europe, 537 MW in North America and 28 MW in Asia-Pacific, result of the group’s entry in Vietnam. Moreover, consolidated capital increased by 43 MW thanks to the Seamade offshore project in Belgium, which became operational during the first quarter of the year.
On the other hand, and in line with its strategy of asset rotation to generate value, EDPR has successfully closed the sale of a 68% stake in an operating wind portfolio of 405 MW in the US (275 MW net). In total, the net change in EDPR’s consolidated portfolio was an additional 415 MW.
In addition, as of 30 June, EDPR had 2.9 GW of new capacity under construction: 2,195 MW of onshore wind, 421 MW of solar and 269 MW of participations in offshore wind projects.
It is worth noting that in the first half of the year, EDPR produced 15.3 TWh of clean electricity (+5% year-on-year), avoiding 10 million tons CO2 emissions.
Miguel Stilwell d’Andrade, CEO of EDPR, explains: “Despite closing the first half of the year with results affected by various factors such as the weather events in the US, we have confirmed our commitment to growth in new attractive markets with potential. The momentum of the company’s internationalisation, coupled with the strength of our asset rotation strategy, as well as the good performance of our business in Europe and Brazil, allow us to be optimistic about the remainder of the year. The renewable sector is experiencing a moment of great prominence and EDPR is well positioned to take advantage of the opportunity and lead the decarbonisation of the economy“.
The company’s revenues declined 6% year-on-year to EUR 856 million. This decrease is explained by the impact of sales (EUR -69 million year-on-year), the lower average selling price (EUR -22 million year-on-year), mainly due to Spain and the US and unfavourable currency translation (EUR -38 million year-on-year), which were not offset by the additional MW of capacity (EUR +61 million year-on-year) and the higher wind resource (EUR +11 million year-on-year). The weather phenomenon that took place in the first quarter of the year in the US also affected the evolution of revenues.
As a result, EBITDA declined 13% year-on-year to EUR 654 million in the first half. EBIT amounted to EUR 364 million.
These factors also had an impact on net profit, which reached 142 million euros, 44% less than in the same period of the previous year.
Despite this, the business performed well in Europe and Brazil, with EBITDA increasing by EUR 40 million compared to the previous year. Net debt reached 3,563 million euros (+120 million euros compared to the end of the previous year), reflecting the investment strategy offset by the capital increase carried out in April, which gives the company a solid financial position.
Growth potential and commitment to new markets
EDPR continues to increase its project portfolio and has significant near-term visibility for additional growth. It has 3.7 GW of PPAs (power purchase agreements) under negotiation and pre-selected, has closed a collaboration agreement with Amazon for solar and wind energy through PPAs between 2023-2025 in the US, Europe and Latin America and has relevant forecasts such as the potential auctions of more than 30 GW that the company expects to occur in 2021.
EDPR is also expanding its geographical presence to take advantage of growth opportunities in attractive markets. Of particular note is the company’s entry into renewable markets with high growth potential and long-term renewable regulatory frameworks such as the UK, Chile, Vietnam and Poland.