EDPR reported a 556 million euro net loss for 2024, driven by one-off charges in Colombia and the U.S., including a precautionary impairment due to policy changes. The company plans to scale back its capacity expansion from 3.8 GW to 3.5 GW and anticipates over 3 billion euros in asset rotation proceeds. Despite electricity sales rising by 4%, consolidated EBITDA fell 16%.
EDP Renewables (EDPR) reported an unexpected net loss of 556 million euros ($584 million) for 2024, attributing the setback to substantial one-off charges related to projects in Colombia and the United States. This loss reflects the impact of the U.S. administration’s recent offshore wind policies. As a consequence, EDPR announced plans to reduce its capacity expansion to 3.5 gigawatts over the next two years, down from the anticipated 3.8 GW for 2024.
Market analysts had anticipated a profit of 272 million euros. The unexpected loss was primarily driven by non-recurring charges totaling 777 million euros, which included a significant 590 million euros related to the exit from Colombian wind farms. Further, a precautionary impairment of 133 million euros was recorded in the U.S. due to uncertainties stemming from a presidential executive order issued on January 20, halting new approvals for offshore wind developments.
EDPR’s recurring net profit, excluding extraordinary items, saw a decline of over 50%, reaching 221 million euros. The company aims to rotate over 2.5 GW of assets, which involves selling mature plants to fund new projects, targeting over 3 billion euros in proceeds over the next two years. Last year, EDPR booked only 179 million euros in capital gains from the sale of stakes in four wind and solar projects, in contrast to 460 million euros in 2023.
Electricity sales increased by 4% to 2.32 billion euros in 2024, backed by a 6% rise in power generation, amounting to approximately 36,600 GWh, largely driven by robust growth across North America and the Asia-Pacific region. Consolidated EBITDA fell 16% year-on-year to 1.53 billion euros, falling short of analysts’ projections of 1.74 billion euros.
EDPR faced a significant financial loss for 2024 due to one-time charges related to strategic decisions in Colombia and new uncertainties in the U.S. offshore wind sector. The company now intends to moderate its capacity expansion plans and expects to generate substantial proceeds from asset rotations. Despite challenges, electricity sales and generation showed healthy growth in key markets, although overall profits and earnings metrics declined compared to previous forecasts.
Original Source: www.tradingview.com
