Renewables firm EDPR's recurring first-half profit jumps 33%, driven by US business

• Recurring EBITDA rose 8% year-on-year to €1.03 billion, with U.S. operations representing 62% of the total; excluding foreign exchange effects from a 7% dollar depreciation, net profit would have surged 43%
• Portfolio expansion added 1.8 GW of gross capacity over 12 months (48% in North America, 36% in Europe), bringing total capacity to 20.5 GW, while electricity generation increased 4% to 22.1 TWh
• Asset rotation gains jumped to €66 million from €12 million year-earlier, driven by mature asset sales in Italy, while operating expenses decreased 2% due to efficiency measures

Summary: EDPR Reports Strong H1 2024 Results

Key Financial Performance:

EDP Renewables (EDPR), the world's fourth-largest wind energy producer, reported impressive first-half 2024 results. Recurring net profit surged 33% year-over-year to €183 million ($209 million), beating analyst expectations of €170 million. Recurring EBITDA increased 8% to €1.03 billion. When excluding foreign exchange effects—primarily from a 7% depreciation of the U.S. dollar against the euro—recurring net profit jumped 43% and EBITDA rose 12%.

Geographic Performance:

U.S. operations drove growth, accounting for 62% of recurring EBITDA. The company's North American portfolio (U.S., Canada, Mexico) represented 48% of the 1.8 GW in gross capacity additions over the past 12 months. Electricity generation increased 4% to 22.1 terawatt hours, with North America contributing a 7% increase that offset a 2% decline in Europe.

Strategic Initiatives:

EDPR benefited from portfolio expansion and asset rotation strategy, generating €66 million from selling mature Italian assets compared to just €12 million in the prior year period. Recurring core operating expenses declined 2% due to efficiency measures. Total installed capacity reached 20.5 GW, with 1.9 GW under construction to support growth beyond 2026.

Market Implications:

The strong results demonstrate EDPR's successful geographic diversification and operational efficiency. The company's focus on the U.S. market appears to be paying dividends despite currency headwinds, positioning it well within the global renewable energy transition.