Latest News

Portugal's EDP increases 2025 targets following solid first half

EDP, Portugal's largest utility company, raised its 2025 profit target on Thursday following a first-half improvement in earnings thanks to cost saving and increased electricity generation.

EDP expects to earn a recurring net profit of between 1.2 and 1.3 billion euro ($1.4-1.5billion) this year. This is up from its previous estimate of 1.2 billion euro.

In 2025, the recurring earnings before interest taxes, depreciation, and amortization (EBITDA), would be between 4.8 to 4.9 billion euro, an increase from the previous guidance of around 4.8 million euros.

Early trading on EDP shares showed little change.

"We had an excellent first half, with solid (recurring), operational results... and efficiency gains and costs reductions. This allowed us to increase our guidance for the year," said Chief Executive Miguel Stilwell de Andrade.

EDP's net profit grew 27% in the first half to 752 millions euros. EBITDA grew 7%, to 2.6 billion euro.

EDP reported that the total electricity production increased by 12%, to 34.6 Terawatt-hours. This was due to high rainfall on the Iberian Peninsula, which filled reservoirs up to 87% capacity, as well as natural gas power stations.

After the major power outage that occurred in Spain and Portugal April 28, it was decided to prioritize the production of gas plants for the purpose of strengthening the electrical grid.

In order for the large grid investments in Iberia needed to materialise, "it is essential that regulators in Portugal, and Spain, when they conduct their upcoming reviews increase the rates on this asset base".

He said that the current rates of return in both countries were around 5.6%, but they should be raised "to more realistic levels" in order to keep up with other European countries which reward investments with returns as high at 7.5%.

EDP installed capacity in June was 32.3 gigawatts. This is 11% higher than the previous year.

(source: Reuters)