- EDP’s net income has significantly increased by 83% year-on-year (y/y) to EU946 million, up from EU518 million.
- The company’s net debt stands at EU16.9 billion.
- There has been a 25% y/y increase in Ebitda, reaching EU3.82 billion.
- The rise in net income has been supported by hydro recovery in Portugal following an extreme drought in 2022.
- The increase in recurring net income in Brazil after successfully bidding for the remaining shares in EDP Brasil also contributed to the rise in net income.
- Asset rotation gains from two transactions in Spain and Poland also had a positive impact on net income.
- EDP’s net financial costs rose by 9% to EU635 million due to a 60 basis points increase in the average cost of debt, which now stands at 4.9%.
- The increase in net debt reflects the financing of tariff deficit in Portugal, acquisition of EDP Brasil minority interests, and investment in electricity networks and renewables.
- EDP expects to securitize most of the tariff deficit accumulated during the year by the end of the year.
- The company also plans to cash in on a “significant part” of announced sale transactions by the year end.
- EDP’s current ratings stand at 22 buys, 2 holds, and 0 sells.
A look at EDP – Energias de Portugal SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
EDP – Energias de Portugal SA has a long-term outlook that is indicated by its Smartkarma Smart Scores. The portuguese energy company has a score of 3 for Value, Dividend and Growth, and a score of 3 for Resilience. Its Momentum score is 2. These scores suggest that the company is a reliable and consistent performer that can be relied upon for the long-term.
EDP – Energias de Portugal SA is a portuguese company that generates, supplies and distributes electricity and the supply of gas in Portugal and Spain. It is also involved in electricity distribution, generation and supply in Brazil and wind power promotion, construction and operations in Spain, Portugal, France and Belgium.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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