EDPR boosts profits despite Spain hit

Renewables group EDPR said its profits had remained “resilient” to the negative impacts of Spanish regulation, citing the strength of a geographically-diverse asset base that grew to 8.5GW last year.

EDPR – the world’s third-largest wind power producer – today posted a 2013 net profit of €135m ($185m), 7% up on 2012, on revenues 6% ahead at €1.36bn.

EDPR said the increased revenues came thanks to what it claimed as “asset quality with the highest load factors in the market” and the addition of 502MW, with total output of 19.9TWh in 2013, up 8% on 2012’s level.

The Portuguese-owned company registered a 1% increase to €947m in earnings before interest, tax, depreciation and amortisation (Ebitda).

It said that came despite the impact of regulatory changes in Spain, where government measures to close the country’s so-called tariff deficit have affected renewables operators. EDPR took a €71m Ebitda hit on the Spanish measures during 2013.

The company told investors: “By platform, the main contributor to Ebitda was the US, followed by Spain and Portugal, which is evidence of the geographical diversification of the portfolio.”

It said its focus for 2014 will be “on selective growth based on the execution of PPA projects in the US, the cornerstone of the company’s future performance”.

EDPR has tied up 980MW additional “profitable PPAs” in the US for 2014-16 and is preparing to start operating its first Californian wind and solar projects this year.

Europe will present “low risk growth opportunities” via Portugal’s ENEOP programme, and in Italy, France and Poland, it added.