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Investing.com - Shares in EDP Renovaveis (ELI:EDPR) slumped on Thursday after the world’s fourth-biggest wind power producer reported a surprise net loss of 556 million euros in 2024.
The group, which is majority owned by Portuguese electric utility EDP, was dented by steep one-off impairment charges worth 777 million euros at sites in the U.S. and Colombia.
Analysts had anticipated that the company, known as EDPR, would report an average income of 272 million euros, according to Reuters.
EDPR said the charges were linked to a "U.S. offshore impairment" and a move to exit from wind farms in Colombia.
Excluding the one-offs, recurring net profit dropped by 53% to 221 million euros. Core profit, or earnings before interest, taxes, depreciation and amortization slipped by 16% to 1.53 billion euros, versus analysts expectations of 1.74 billion euros.
Analysts at Barclays (LON:BARC) flagged particular weakness at EDPR’s Iberian divisions that stemmed from softer achieved prices and lower volumes. They added that EDPR’s net debt of 8.3 billion euros was 14% above their estimates.
"We continue to see EDPR as a balance sheet fix story," the brokerage said in a note to clients.
EDPR noted that it booked 179 million euros in capital gains from stake sales, as part of an ongoing push to offload older plants in order to fund newer ones. It had made 460 million euros from similar moves in 2023.
Strength in North America and Asia-Pacific also underpinned a 6% uptick in power generation to 36,600 gigawatt-hours, boosting full-year electricity sales by 4% to 2.32 billion euros.
(Reuters contributed reporting.)