ELCPF - Energias de Portugal: Strong Growth Potential Outweighs Risks
2024-05-03 06:36:07 ET
Summary
- EDP plans to add 4.5 GW of renewable capacity per year between FY23 and FY26, totaling 18 GW.
- EDP aims to finance part of the expansion plan through OCF and the sale of built assets.
- The company expects growth in operating results and profitability, with an increase in dividends and a Net Debt/EBITDA ratio close to 4x.
Energias de Portugal (EDP) ( EDPFY ) is the largest utility in Portugal and a major player in the international renewable energy market, boasting an installed capacity of 26.5 GW, including 22.7 GW derived from wind, solar, and hydro sources, as of March 2024. In FY23, management unveiled the 2023-2026 Business Plan , a highly ambitious strategy aimed at adding 4.5 GW of installed renewable capacity per year between FY23 and FY26, totaling 18 GW. The plan includes strengthening its electricity network through EDP Brasil delisting . To implement the program, a stock issuance of €2B was necessary, with €1B raised by the parent company and €1B by the subsidiary EDP Renováveis. Furthermore, the strategy involves financing an additional €7B through built-to-sell assets, equivalent to approximately 30% of the assets under construction between FY23 and FY26....
Energias de Portugal: Strong Growth Potential Outweighs Risks