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 the 1H 2022, 87% more than last year. Also, reflecting the positive performance is EBITDA which summed 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 of 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 totalled +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, output is up 12% interannually reflecting better renewable resource in US 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 resource.
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 impact from 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) totalled 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 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 totalled 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 1,532 million euros (flat compared to December 2021), reflecting benefits captured by the projects.