Energias de Portugal (EDP), a major player in the Portuguese electricity and gas market, has reported a threefold increase in second-quarter net profits, reaching €408 million. This surge is attributed to the company's growing focus on renewable energy sources.
EDP's profits in the first half of the year have reached €0.762 billion, marking a 75% increase compared to the same period in 2023. The company's CEO, Miguel Stilwell de Andrade, emphasized the crucial role of renewable energies in this success, leading to a substantial reduction in fossil-fuel-based electricity generation.
The company's subsidiary, EDP Renováveis, specializing in renewable energy, also experienced robust growth. Its net profit in the first half of the year reached €210 million, a significant jump from €80 million in the corresponding period of 2023. This growth highlights EDP's dedication to the energy transition and its expansion in renewable projects.
EDP's EBITDA increased by 8% year-on-year to €2.6 billion. Based on these positive results, the company's management projects a net profit of approximately €1.3 billion for the full year, surpassing the €1.2 billion achieved in the previous year.
However, EDP's debt has risen by 14% since the end of last year, amounting to €17.4 billion. This increase is a result of continuous investment in renewable energy infrastructure and the expansion of the company's activities worldwide.
Despite concerns about the rising debt, EDP shares on the Lisbon Stock Exchange experienced a minor decrease of 0.3%, closing at 3.80 euros. Shares in EDP Renováveis also saw a decline of 1.71%, reaching 14.36 euros. These market reactions reflect investor concerns about the increasing debt, despite the company's solid financial results.
The expansion of renewable energies remains a central pillar of EDP's strategy. The company is heavily investing in this sector, aiming to optimize its existing assets and reduce its carbon footprint. This approach aligns with global goals for energy transition and sustainable development.
EDP's future success depends on striking a balance between investments in renewable energy and prudent financial management to ensure long-term growth while addressing the challenge of increasing debt.
