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The ebb and flow of profits in the Portuguese stock market.  What are the most profitable companies in 2021?  And which one lowers more than the others?

The ebb and flow of profits in the Portuguese stock market. What are the most profitable companies in 2021? And which one lowers more than the others?

Six of the 19 companies in the PSI-20, the “first league” of the Portuguese Stock Exchange, submitted their accounts for 2021 and in this sample the trend was an improvement in results compared to the previous year. Only EDP saw its earnings decline, while those of EDP Renováveis, Galp, Navigator, Semapa and Novabase increased.

All things considered, half a dozen listed companies, roughly a third of the PSI-20, add up to €2.15 billion in 2021, 40% more than the same world of companies earned in 2020.

Most of the companies on the Portuguese stock exchange have not yet presented results, which will happen in the coming weeks (you can see the calendar below), which could change the “picture” of the results of listed companies.

But looking at the figures that have already been published, the improvement in the operational performance of the companies in the Portuguese stock exchange is also notable, with EBITDA rising in five of the six companies (it fell only in the case of EDP).

EDP ​​remains the most profitable on the Portuguese Stock Exchange, but also the most indebted, not only in absolute numbers (net debt in December was €11.56 billion, down from €12.24 billion in December 2020).) but also in relative terms. (The net debt to EDP/EBITDA ratio in 2021 remained at a multiple of 3.5, similar to 2020). But from EDP also millions of euros flow to shareholders: this year the electric company will once again distribute 750 million euros to its shareholders.

See how the results of PSI-20 companies that have already submitted accounts have been.

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bring energia that Show results on Mondaymade the biggest development in its net income, from a loss of 42 million euros in 2020 to a profit of 457 million euros in 2021, but also EDP Renováveis, Semapa and Navigator posted double-digit increases in their net income.

But it is also worth looking at indicators that are closer to the operational performance of different companies. How has EBITDA evolved for companies that already published annual accounts?

EDP ​​continues to be the company with the highest EBITDA in the Portuguese stock market, despite recording a decline in this indicator in 2021. As already published results show, it has surpassed EDP Renováveis, despite its overall growth Last, Galp Energia in terms of EBITDA.

But among managers of listed Portuguese companies, financial discipline has been a growing concern. Despite the context of lower interest rates, the trend of PSI-20 firms in 2021 (in the sample analyzed here) has been to reduce leverage.

Of the companies that have already published accounts, only Galp increased its net debt last year, from 2.07 to 2.36 billion euros. However, the significant increase in EBITDA for the oil company allowed Galp to have one of the most positive developments in terms of its “net debt/EBITDA” debt ratio.

In fact, Galp has a relatively low net debt/EBITDA multiple, with five of the six companies with published accounts already deleveraging in 2021. Only EDP kept its debt ratio unchanged (at 3.5): the group lowered the absolute value of its net debt, But it also made lower profits in 2021.

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And what do the results of listed companies tell us about the distribution of profits? They show, for now, that EDP is still the PSI-20 distributing more than 1 million euros in the market: it will be 750 million euros this year (in line with last year), a value that exceeds even the profits obtained in 2021.

Galp asserts itself in 2022 as the second largest dividend payout: €431 million will be delivered to shareholders, which will increase from a dividend of 50 cents to 52 cents per share, with the promise of an always 4% annual increase against the company to achieve a debt/EBITDA multiplier of less than 1.

Note, however, that the displayed values ​​are absolute amounts that each company pays to reward its shareholders, without regard to the current value of both the companies and their stock exchange.

A more complete picture of the results and the generosity of the PSI-20 companies towards shareholders can be given when the group of Portuguese listed companies has already submitted the results for the year 2021. See the calendar below.

Upcoming results presentations:

  • Amorim Cork: February 24
  • Farol: February 25
  • BCP: February 28
  • mota gospel: March 3
  • we: March 3
  • Jeronimo Martins: March 9
  • CTT: March 16
  • Green Volt: March 16
  • Sonai: March 17
  • tri: March 17
  • ramada: March 17
  • Ring: March 24
  • Ebersol: not available