Q2 2024 EDP Renovaveis SA Earnings Call Transcript
Key Points
- EDP Renovaveis SA (EDRVF) reported a 5% increase in electricity generation year-on-year, reaching 19 terawatt hours, driven by new capacity additions and improved wind conditions.
- The company achieved a 26% year-on-year increase in EBITDA, reaching EUR960 million, supported by new capacity additions and asset rotation gains.
- EDP Renovaveis SA (EDRVF) successfully rotated 800 megawatts of assets, generating EUR1.2 billion in proceeds and EUR171 million in gains, with an average return on invested capital of 15%.
- The company signed 1.3 gigawatts of PPAs in the first half of 2024, primarily with major global tech companies, ensuring long-term revenue visibility.
- EDP Renovaveis SA (EDRVF) reported an 8% year-on-year reduction in core operating expenses per average megawatt, attributed to improved efficiency and intra-group synergies.
- The average selling price is expected to decline to EUR55 per megawatt hour for 2024, down from EUR61 in the first half, due to lower spot electricity prices in Europe.
- Generation volumes for 2024 are anticipated to be at the lower end of guidance due to lower-than-expected wind resources in Brazil.
- The company faces challenges in Colombia, with ongoing renegotiations and no significant progress in discussions with the regulator and government regarding economic conditions.
- Net debt increased by EUR1.7 billion to EUR7.5 billion, driven by expansion CapEx and financial investments, with limited refinancing risk in the short to medium term.
- There is uncertainty regarding the timing of asset rotation transactions, which could impact the realization of capital gains within the current fiscal year.
Good morning, everyone. Thanks for attending EDPR's first-half '24 results conference call. Our CEO, Miguel Stilwell de Andrade, and our CFO, Rui Teixeira, will run through the financial performance over the first half of the year, along with a brief execution update. We'll then move to Q&A. (Event Instructions)
And I will give now the floor to our CEO, Miguel Stilwell de Andrade.
Thank you, Miguel. Good morning, everyone. It's great to have this call first thing in the morning and to discuss the first half of EDPR's performance -- the first half 2024 EDPR's performance. So I'll start with a short update on the business performance, and we can go straight into slide 4. And then I -- before I pass over to Rui for the financials.
But if we focus on this first slide, I think it gives us a good summary of the highlights of the first half of the year. So in terms of
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