EDP, company present in all sectors of the Brazilian electric market, registered a Net Profit of R$ 484,6 million in the first semester of 2019, a 9,7% increase over the same period of last year. The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of the company showed an increase of 10,2% in the period, adding R$ 1,2 billion in this first semester.
During the same period, investment tripled when comparted to the previous year, adding up to R$ 1,1 billion. In Transmissions, the advancement of projects follows within the schedule set to speed up the works in progress. Since theses constructions were green lit, R$ 1,1 billion has already been injected in them, counting for 29% of the total investment planned.
The results of the company were influenced by relevant events in the semester, such as the acquisition in the secondary market of Litoral Sul Transmissora de Energia Ltda, which holds the rights to concession of Lot Q, located between Santa Catarina and Rio Grande do Sul, bid having been made on the first leg of Auction 13/2015. EDP invested R$ 407 million, taking into account all the CapEx of the construction and the purchase value for 100% of Litoral Sul. Another high point of the semester was lot 24, which became operational in December 2018, 20 months ahead of schedule, and presented a RAP (Annual Permitted Revenue) of R$ 11,5 million in the semester.
Progress regarding construction of lots 11 (Maranhão) and 21 (Santa Catarina) were also headlines of the semester. Lot 7, also located in Maranhão, has just obtained its installation permit, and lot 18, located between Minas Gerais and São Paulo, received a pre-permit and is scheduled to begin construction in the second semester.
“Heading towards our announced commitment to make a record investment in the country this year, EDP is focusing its business strategy notably on an increased participation in the Transmission segment. At the same time, the company is also becoming a benchmark in solar generation and energetic solutions”, states Miguel Setas, president of EDP in Brazil.
Early in the second semester EDP launched EDP Smart, a brand that gathers the full portfolio of solutions the company offers to business and residential clients in the fields of Sales in the Free Market, Retail Sales, Energetic Efficiency, Solar Energy, Electric Mobility and Customer Services.
In June, the division delivered to Multiplan, one of the main Shopping Center groups in the country, the larges solar energy complex implemented by the company. Conceived in the self-sustaining class, the set of two plants have a capacity of 8,33 MWp, guaranteeing 100% of energetic supply for the Village Mall, commercial center located in Rio de Janeiro. According to Multiplan, this project represents an annual saving of R$ 5,5 million for the mall.
“The creation of EDP Smart allows us to expand our activities and explore new markets with high potential for growth. Our expectation is to increase the relevance of the solutions segment in our Ebitda within the next three years” claims Miguel Setas.
Generation and Distribution
During the semester, EDP’s Net Revenue in Water Generation amassed R$ 676,7 million, an increase in 6,4% comparing to the first semester of 2018. The result was made possible by an increase in the volume of energy negotiated.
In Distribution, again we see an increase in Net Revenue, reaching R$ 3,5 billion in the semester (not accounting for construction revenue), an increase in 4,2% versus the same period in 2018. The volume of energy distributed increased in 3,8% in the period, as a result to the increase of the average temperature and low precipitation in the areas of concession for EDP São Paulo and EDP Espírito Santo.
In this semester, EDP was acknowledged as one of the most innovative companies in Brazil. In a study conducted by the newspaper Valor Econômico along with consulting group Strategy&, the company ranked as runner up in the electric sector, and in the overall ranking, climbed 37 positions, jumping from the 77th to 41st position from 2018 to 2019.
Focused on optimizing its capital structure, EDP achieved a consolidated leverage of 2.0 x Net Debt / Adjusted EBITDA, disregarding the non-recurring effects of the last 12 months, cementing the Company in its solid and sustained growth path.
About EDP in Brazil
With over 20 years in the market, EDP is one of the largest private companies in the Electricity sector to operate in all aspects of the supply chain. The company has more than 10 thousand collaborators between direct and third-party employees working with Energy Generation, Distribution, Transmission, Sales and Customer Service. It has six hydroelectric and one thermoelectric generating units and reaches around 3,5 million customers through its distribution grid in the states of São Paulo and Espírito Santos. Recently it became the main stock-holder of CELESC in the state of Santa Catarina. In Brazil, EDP is seen as a benchmark in Innovation, Governance and Sustainability, featuring for 13 consecutive years on the B3 Corporate Sustainability Index (ISE).