Company’s net profit sees significant growth and dividend gets a boost
- EDP-Energias de Portugal shares rise after hydro earnings support a 40% increase in net profit
- Company raises dividend for 2023
- Net profit for the year reaches 952 million euros
- Energy sales and services revenue contracts by 22% on-year
- Earnings from renewables rise by 18%
- Significant on-year recovery in hydro generation in Portugal drives company’s result
- Increased contribution from Brazilian subsidiary and higher asset rotation gains
- Electricity networks Ebitda remains flat at EUR1.5 billion
- Wind and solar operating performance decelerates due to decrease in realized prices
- EDP proposes a dividend increase for the first time since 2016
EDP-Energias de Portugal shares rose after the company reported strong hydro earnings, leading to a 40% increase in net profit. The company also announced a dividend increase for 2023. Net profit for the year reached 952 million euros, compared to 679 million euros in the prior year. However, energy sales and services revenue contracted by 22% on-year. Earnings from renewables, which represent 71% of the company’s Ebitda, rose by 18%. The company’s result was largely driven by a significant on-year recovery in hydro generation in Portugal, an increased contribution from its Brazilian subsidiary, and higher asset rotation gains. Electricity networks Ebitda remained flat at EUR1.5 billion. Wind and solar operating performance decelerated due to a decrease in realized prices. EDP will propose a dividend of EUR0.195 a share for 2023, marking its first dividend increase since 2016.
Factuality Level: 8
Factuality Justification: The article provides specific details about EDP-Energias de Portugal’s financial performance, including net profit, revenue, and Ebitda. It includes quotes from analysts to support the information presented. The article does not contain irrelevant information, misleading details, sensationalism, or bias. Overall, the article is factually sound and focuses on the main topic of the company’s financial results.
Noise Level: 3
Noise Justification: The article provides relevant information about EDP-Energias de Portugal’s financial performance, including net profit, revenue, and dividend increase. It also includes insights from analysts regarding the company’s results and future prospects. However, there are some repetitive details and unnecessary information that could be considered noise.
Financial Relevance: Yes
Financial Markets Impacted: EDP-Energias de Portugal shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the increase in net profit and dividend raise of EDP-Energias de Portugal. However, there is no mention of any extreme event.
Public Companies: EDP-Energias de Portugal (EDP), Orsted (N/A), Vattenfall (N/A)
Key People: Pierre Bertrand (N/A), Nadege Tillier (Analyst at ING), Jefferies analysts (N/A), RBC Capital Markets analysts (N/A)
Reported publicly:
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