Complete News World

EDP ​​submits proposal to transform Pego - Energia plant

EDP ​​hopes to reverse poor results with strong asset rotation – Energia

Although the file is closed The first quarter of the year lost 76 millionEDP ​​expects strong asset turnover “in 2022, with the deal already closing and contributing to a total of 1.8 billion in financial gains already collected between 2021 and 2022.

“The results were poor. The first three months were a huge challenge for the company,” Miguel Stilwell d’Andrade told analysts, stressing the worst drought in the past 100 years, forcing dams to stop, as well as electricity at record levels. In wholesale markets, he withdrew 400 million euros from the company’s EBITDA through March.

However, the CEO is optimistic about the remaining months of the year, especially in terms of the EDP asset rotation, which will help improve accounts and return to profits. “I’m not going to extrapolate from this quarter to the rest of the year. We still believe that in 2022 it’s possible to make a higher profit than in 2021. There are many challenges, many unbelievable things, but we haven’t thrown them in the towel yet,” assured Stilwell. Dandrade. EDP ​​closed 2021 with a profit of 657 million euros, down 18% compared to 801 million euros in 2020. Over the long term, the company maintains a profit target of 1 billion euros in 2023 and 1, 2 billion in 2025.

Despite the significant decline in hydro generation, EDP has already progressed with a strong increase in thermal generation (2.6 times more), but Stilwell d’Andrade ensures that despite historically high gas prices, electricity production at thermal plants will be improved And it will not affect the accounts. The company – which has two gas supply contracts indexed by the Dutch TTF index, which serves as a benchmark for European countries – ensures that any losses will be overcome once the gas is burned to produce electricity.

See also  Elon Musk says hydrogen storage is useless. do you agree?

Currently, 75% of the company’s electricity generation is already renewable. EDP ​​wants to phase out coal by 2025 (in Spain) and gas by 2030.

Regarding mitigating measures to compensate for poor results in water production, the CEO highlighted EDP Renováveis’ earnings, network and distribution business.

Regarding asset rotation, the presentation that the electric company gave on Friday to analysts that has already been sent to stock market authority (CMVM) explains that among the three transactions planned this year, EDP Renováveis ​​has already managed to close the sale of 100% of 149 megawatts of wind energy in Poland, which is equivalent to 300 million euros.

About 300 million more are in the pipeline for 181 megawatts of wind capacity in Spain and another 250 million of solar power in the United States, for a total of about 850 million. In addition, the CEO has developed two more companies already “on the horizon”.

“We are confident that we will exceed the expected number of asset rotations in 2022, but we will remain below 2021,” he said.

Similarly, EDP ensures that it is on track to meet its targets for 2023-2025 and anticipates a “potential turnaround” in the company’s results in the coming quarters. In this way, the electricity company believes that it is “on the right track, as the performance of the rest of the year will compensate for the results of the first quarter,” according to a presentation posted on the regulator’s website.

At the same time, the company also sees “potential for improvement” resulting from the structural increase in energy prices, and increased trading volumes, particularly from 2023 onwards.

See also  NOS launches Total Wi-Fi! Comprehensive internet...