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Portugal's EDP maintains 2026 guidance despite cutting investment plans

Portugal's largest utility EDP maintained its EBITDA guidance and net profit forecast for 2026, despite reducing its investment plan and reporting lower profits for the last year.

EDP announced earlier this week that it would slow down the expansion of its capacity, "to maximise returns", and install 3.5 gigawatts in the next two year compared to the 4 gigawatts in 2024.

This means that an average investment of 4.4 million euros ($4.6 million) per year will be made over the next two-years, compared to the 5.4 billion euro invested in 2024. EDP announced in May that it would invest an average of 5.7 billion euro per year between 2024-2026.

EDP's Chief Executive Miguel Stilwell de Andrade stated that the company expects a net profit of between 1.2 and 1.3 billion euro in 2026. This is up from 801 millions euros in 2024.

Stilwell de André also predicted that EBITDA will rise from 4.8 billion euro last year to between 4.9 and 5 billion euro in 2026.

EDP reported that its net profit in 2024 fell by 16% to 801 millions euros. This was after its renewables division reported a loss in 2024 of 556million euros, due to impairments on one-off projects in the United States and Colombia. In an LSEG survey, analysts had predicted a profit of 1,23 billion euros for EDP.

EDP Renovaveis' shares fell 9% during afternoon trading, while EDP's dropped by 3.4%.

EDP announced an share buyback program worth 100 million euro and proposed a dividend increase of 3% to 0.20 euros per share by 2024. This represents a payout ratio of 60%. $1 = 0.9569 euro (Reporting and editing by Tomasz Janowski, Charlie Devereux, and Susan Fenton).

(source: Reuters)