EDP S A ADR (EDPFY) Q1 2025 Earnings Call Transcript

2025-05-09 12:24:57 ET

EDP S A ADR (EDPFY)

Q1 2025 Earnings Conference Call

May 09, 2025 03:30 AM ET

Company Participants

Miguel Viana - Head of Investor Relations

Miguel Stilwell de Andrade - Chief Executive Officer

Rui Teixeira - Chief Financial Officer

Conference Call Participants

Peter Löscher - CaixaBank

Javier Garrido - JPMorgan

Alberto Gandolfi - Goldman Sachs

Olly Jeffery - Deutsche Bank

Jorge Guimarães - JB Capital

Arthur Sitbon - Morgan Stanley

Gonzalo Bordona - UBS

Jorge Alonso - Bernstein

Presentation

Operator

Good morning. We welcome you to the EDP First Quarter 2025 Results Presentation Conference Call. [Operator Instructions]

I now hand the conference over to Mr. Miguel Viana, Head of IR and ESG. Please go ahead, sir.

Miguel Viana

Good morning, ladies and gentlemen. Thanks for attending EDP's First Quarter 2025 Results Conference Call. We have today with us our CEO, Miguel Stilwell de Andrade; and our CFO, Rui Teixeira, which will present to you the main highlights of our strategy execution and the first quarter 2025 financial performance. We'll then move to the Q&A session in which we'll be taking your questions both by phone or written questions that you can insert from now onwards at our webcast platform.

I'll give now the floor to our CEO, Miguel Stilwell de Andrade.

Miguel Stilwell de Andrade

Thank you, Miguel, and hello, everyone. Thank you for attending our first quarter results conference call. So I'd like to start for those of you that weren't able to listen to yesterday's call from EDP Renewables, to start with a brief remark on the unprecedented blackout of last week in Iberia. I think the first thing to note is while it's yet to be fully explained and we don't know the root cause, it's really important to recognize how both countries were able to fully restore power and safety to the population. And I want in particular to thank the people at EDP and E, the distribution company in both Portugal and Spain for all the hard work and the dedication and sort of all the hours they put in to get this -- the power back online. So I think great work done by the team.

On the other hand, I think the event also really underlines the need for continued investment in the grid infrastructure and interconnections. In particular, interconnections between Spain and France. It's been clear for many, many, many years that this is absolutely critical, and it would have certainly helped also in this context. But also the need for investments in energy storage and also complementary solutions for example, the ancillary services. So together with renewables, I think these are the elements that are key to ensure an electricity system that provides clean, reliable and affordable energy to all. So I think that's just the note I'd like to make on last week's blackout event.

Now turning to this quarter's results. I think if we go to Slide 3, and just starting with a quick recap on the first quarter numbers. EBITDA increased 6% year-on-year, so it reaches €1.4 billion in the first quarter. This is clearly a very good quarter, particularly for the integrated generation and supply business in Iberia. We had a lot of rain. We had higher power prices certainly versus last year, and we also benefited from a strong demand for flexible generation and ancillary services. So that was good.

On the electricity network side, we also saw a good resilient performance. It actually increased 7% if we exclude the asset rotation gains and FX from last year. Bear in mind that last year, we recorded €134 million in asset rotation gains split between the transmission and EDPR transactions. And this year, we're not recording any gain and yet we had this underlying growth....

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