EDP Brasil earns 100.5 million euros in the first quarter

EDP Brasil recorded a profit of 523 million reais (about 100.5 million euros) in the first quarter of 2022, according to a financial statement released by the company on Wednesday night. The amount indicates an increase of 5.4% compared to the profit of 443.6 million obtained in the same period of the previous year.

EDP Brasil's EBITDA (earnings before interest, taxes, depreciation and amortization) was 1.3 billion reais (250 million euros), an increase of 20.8% compared to the first quarter of 2021, when it totaled about 1 billion reais (192 million euros).

According to the company's financial statement, the transmission segment was the highlight in the period, including the delivery of two transmission lines in the Brazilian state of Santa Catarina six months ahead of schedule.

In this segment, the company also highlighted that it took over, in February, the control of the former state-owned transmission company of the Brazilian state of Goiás, which was renamed EDP Goiás, and generated "results above the figures initially considered."

EDP Brasil also informed that it adhered to the Credit Operation Contract, a program instituted by the Brazilian government to provide financial liquidity to the energy sector and relieve consumers from the tariff impacts caused by the water shortage crisis that will hit the country in 2021.

According to the press, the total amount requested in this program was 109.1 million reais (21 million euros).

The volume of energy distributed by EDP Brazil between January and March increased by 1.3%, with 0.7% at EDP São Paulo ("EDP SP") and 2.1% at EDP Espírito Santo ("EDP ES").

In solar generation, the company highlighted in a statement released together with the financial results that in the first three months of the year it continued with the strategy to expand its participation in this segment, reaching 1 gigawatt (GW) of installed capacity by 2025.

"EDP Brasil's growth in solar has been materialized through the contracting of new parks for large-scale customers, as well as, projects for distributed generation customers. In April, we announced the second and largest 'utility scale' park, in partnership with EDP Renováveis, a co-investment in equal parts, and capacity of 321 megawatt peak (MWp). It is worth remembering that our target is to reach 1 GW of exposure to solar energy by 2025, considering both the 'utility scale' and distributed generation," said João Marques da Cruz, CEO of EDP Brasil.

Marques da Cruz stressed that the first quarter of the year was marked by advances in the three main growth axes of the company in Brazil, which are the areas of solar generation, transmission and distribution.

"Besides the financial results, our strategy in sustainability has attracted the confidence of the market and society, with actions to lead the energy transition and to be an increasingly sustainable, inclusive, and diverse company, with high levels of governance and transparency," highlighted the executive.

The energy company recorded an investment of 443.5 million reais (85.2 million euros), a 15.3% drop compared to the investment of 523.6 million reais (100.6 million euros) obtained in the same period of the previous year.

EDP Brasil ended the first quarter of 2022 with a debt of 10 billion reais (1.9 billion euros), an increase of 27.6% compared to the debt of 7.8 billion reais (1.5 billion euros) recorded in the same period in 2021.

In the EDP Brasil balance sheet, Marques da Cruz pointed out that the company "raised BRL 1.9 billion (365 million euros), which generated a consolidated leverage of 2.7x Net Debt/EBITDA adjusted at the end of the quarter (.... In addition, we completed 38.5% of the Second Share Repurchase Program."

The company also informed that an Ordinary General Meeting held at the end of April approved the distribution of dividends for 2021, in the amount of 803.2 million reais (154.3 million euros), equivalent to 1.40 reais (27 euro cents) per share.

The Board of Directors of EDP Brasil had already approved the payment of Interest on Equity ("IOC"), in the amount of 454.8 million reais (87.4 million euros) in December.

Therefore, the dividends and the payment of interest on equity of EDP Brasil in 2021 totaled 1.2 billion reais (231 million euros), an amount corresponding to the distribution of 2.19 reais (40 euro cents) per share.