EDP reaches EBITDA of R$1.2 billion in the second quarter of 2015
184% growth compared to 2014 results. Group's installed capacity increases by 15%.
EDP, a company engaged in electricity generation, trading and distribution, reached ab EBITDA (earnings before interest, taxes, depreciation and amortization) of R$1.2 billion in the second quarter of 2015, a 184% increase compared to the R$430 million obtained in the same period of the last year.
Net profits in the second quarter also increased significantly, amounting to R$744 million: a 305% increase compared to the results of 2Q14 (R$184 million). Net operating revenues amounted to R$2.5 billion, a 43% increase compared to R$1.8 billion in the same period last year.
In the first six months of 2015 EDP reached an EBITDA of R$1.6 billion. Net profits in the first half of the year reached R$827.6 million, a 192% increase compared to R$283.2 million in the same period of 2014. Net operating revenues increased by 19%, totaling R$4.6 billion in 2015.
Strategic clarity
According to CEO Miguel Setas, the Group results in the second quarter reflect the Company strategic clarity. "Faced with a challenging scenario, EDP strengthened its position as a pivotal hydrothermal operator," Setas points out. "Our focus and perseverance in implementing our strategy have produced consistent results."
Since the beginning of the year, EDP has completed four corporate transactions as part of this strategy. It sold its stake in EDP Renováveis do Brasil, an operation that should be finalized by the end of 2015; it has completed the purchase of the Pecém I power plant in Ceará, creating an accounting impact on the EBITDA of R$885 million in the second quarter of the year. Finally, last month the Group announced the acquisition of APS Soluções, thereby strengthening its position in the energy efficiency industry, one of the segments with greater potential for growth in the electricity market.
Subsequently, the Company announced the sale of Pantanal Energética for R$390 million. The operation is subject to the approval of the Administrative Council for Economic Defense (CADE) and of the National Electricity Agency (ANEEL) and should be completed by early 2016.
Outstanding performance
The Pecém I power plant also contributed to the second quarter results. In the first half of the year the plant operating availability reached 88%, a 12 pp increase compared to 2014. From the financial point of view, in the first quarter of the year the Pecém I power plant reported an EBITDA of R$142 million compared to R$82 million in the same period of 2014.
"We have a commitment to outstanding performance," says Miguel Setas - an approach that applies both to plants under construction and to "ready-made" plants such as Pecém I. EDP is currently involved in the construction of two hydroelectric plants. 85% of the Cachoeira Caldeirão plant in Amapá is already built, whereas the São Manoel plant in Mato Grosso, still in its early construction stages, has reached 15% of completion - both following the management model of the Santo Antônio do Jari plant, which began its operations before the deadline and within the initial budget.
Consistent results
As far as the generation segment is concerned, the EBITDA of the business unit in the second quarter of 2015 amounted to R$183.3 million - a 17.2% increase. With the purchase of the remaining 50% of the Pecém I power plant, EDP installed capacity increased from 2.4 GW to 2.7 GW. The beginning of operations of the new power plants (Cachoeira Caldeirão, scheduled for 2017; and São Manoel, scheduled for 2018) will increase the Group capacity to 3 GW.
The distribution area EBITDA amounted to R$172.6 million against a negative result of R$124.6 million in 2Q14. The Group distribution companies invested R$21.3 million in loss reduction programs in the second quarter of the year. Total non-technical losses declined 0.34 pp for EDP Bandeirante and 0.46 pp for EDP Escelsa, compared to March 2015.
The trading segment EBITDA reached R$12.9 million in the second quarter. In 2014, the results stood at R$11.8 million. EDP GRID reported an EBITDA of R$2.0 million. Once again, it is important to highlight the investment in the expansion of the company service portfolio with the purchase of APS Soluções, a company with more than 20 years" experience on the market. The transaction is part of EDP strategy to consolidate its position as a relevant player in the provision of electric power services.
