Q2 2024 Edp SA Earnings Call Transcript
Key Points
- EDP SA (EDPFY) achieved 98% of its generation from renewable sources, reflecting a strong commitment to becoming coal-free by 2030.
- The company reported a 50% increase in net profit, reaching EUR0.8 billion, driven by strong growth in renewable generation and lower energy sourcing costs.
- Asset rotation gains contributed EUR243 million, significantly boosting the financial performance compared to no gains in the first half of 2023.
- EDP SA (EDPFY) maintained a solid balance sheet with EUR9 billion in available liquidity, covering refinancing needs until 2027.
- The company successfully executed several asset rotation transactions, including deals in the US, Canada, Brazil, and Italy, at attractive multiples.
- Despite strong performance, the company faces an environment of lower electricity prices, which could impact future profitability.
- The regulatory review process in Portugal and Spain could introduce uncertainties and potential changes in returns for the electricity networks.
- The company's net debt increased to EUR17.4 billion, driven by investments in renewables and dividend payments.
- There is a risk that asset rotation gains may not be as significant in the second half of the year, potentially impacting overall financial performance.
- The tax rate in Portugal remains high, and any changes in corporate tax rates could affect the company's profitability.
Good afternoon, ladies and gentlemen. Thanks for attending EDP's first half 2024 results conference call. We have today with us our CEO Miguel Stilwell d' Andrade; than our CFO Rui Teixeira. We should present you the main highlights of our strategy, execution and the first half 2024 -- financial performance (Operator Instructions)
I'll give now the floor to our CEO Miguel Stilwell d' Andrade.
'-
Thank you, Miguel. Hello, everyone. Thank you very much for attending our first half results conference call. I suggest we move Turning to slide 3, and I don't know how many of you have had a chance to already go through the presentation that was just released a few minutes ago.
But I think it's when we look at these first half 2024 numbers. I think the first thing to say it's a really strong quarter, particularly in terms of renewable resources, 98% of EDP generation came from renewable sources, Hydro wind and solar renewable generation increased around
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