EDP Renováveis (EDPR) Q4 2024 earnings summary

Executive summary

• Achieved record annual capacity additions of 3.8 GW in 2024, bringing total installed capacity to 19.3 GW (+17% YoY), with 2.5 GW added in Q4 and 85% of new capacity in Europe and the US.

• Renewable generation rose 6% year-over-year to 36.6 TWh, slightly above target, despite renewable resources being 2 percentage points below long-term average.

• Recurring EBITDA reached €1.7 billion, up 9% year-over-year, driven by higher electricity sales and tax equity revenues, but offset by lower asset rotation gains and higher financial costs.

• Recurring net profit was €221 million, impacted by lower asset rotation gains, higher financial costs, and significant non-recurring impairments, especially in Colombia and US offshore projects.

• Efficiency programs reduced adjusted core OpEx per average MW by 9% year-over-year.

Financial highlights

• Revenues increased 4% year-over-year to €2,320 million, with electricity sales up 2% to €2.2 billion, but average selling price declined 3% to €58.9/MWh.

• Net debt at year-end 2024 was €8.3 billion, up €2.5 billion from 2023, mainly due to €2.8 billion net expansion investments and lower cash flow from reduced asset rotation gains.

• Asset rotation proceeds totaled €1.5 billion from 1 GW rotated, and tax equity proceeds reached $1.2 billion.

• Operating costs decreased 2% year-over-year to €981 million.

• Organic cash flow was €401 million (-59% YoY); CapEx was €3.4 billion (-25% YoY), with 55% in North America and 29% in Europe.

Outlook and guidance

• Capacity additions moderated to 3.5 GW for 2025-2026, prioritizing returns over volume, with over 90% of 2025 additions under construction.

• Expect to rotate over 2.5 GW of capacity in 2025-2026, generating more than €3 billion in proceeds.

• Focus on projects with at least 250-275 basis points spread over cost of capital, with BESS as a key growth driver.

• Scrip dividend program to continue with a 40% payout, proposing €0.08 per share.

• No specific 2025 earnings guidance provided due to market volatility and asset rotation visibility.