EDPR sees Q1 profits fall

Portuguese renewables group EDPR suffered a 27% dip in net profits at the start of 2014 as it felt the draft of Spanish regulatory changes, lower power prices in Europe and other factors.

EDPR – the global number-three wind producer – posted a first quarter net profit of €66m ($91m), down from €90m during the same period in 2013.

The group’s revenues were down 5% at €381m while earnings before interest and tax (Ebit) fell 12% to €179m.

EDPR boosted production by 10% year-on-year to 6.1TWh in Q1, but its average selling price shrank 15% to €57/MWh.

That was dragged down by a 20% drop in Europe “mainly due to lower selling price in Spain, driven by the changes in the regulatory regime, and to a lesser extent in Romania, due to a drop in the green certificates prices”, said EDPR.

With 2.2GW of its 8.6GW global portfolio in Spain, EDPR and other renewables operators have felt the impact of regulatory changes there which have badly dented returns under national support mechanisms.

Spanish electricity sales fell by one-third year-on-year to €98.5m on production that grew by 3%.

EDPR got a boost this week when the consortium it joined with GDF Suez of France won the right to develop 1GW of French offshore wind.