EDP's 12% fall in profits to €913 million would have been worse but for a strong performance from EDP in Brazil and from EDP Renováveis based in Madrid.
Total pre-tax earnings were up 8% across EDP’s countries of operation but the profit decline was far worse than expected by analysts mainly due to a sharp drop in earnings in EDP’s home market of Portugal.
The earnings before tax and depreciation from EDP Renováveis increased by 26% to €1,142 million in 2015, due to better selling prices in Spain and a rise in capacity.
Earnings in Brazil rose 38% to €857 million, "following some signs of recovery from the drought," the full consolidation of power station Pecém I since May 2015, and the effect of the depreciation of the Real against the euro.
Earnings for the Iberian operation fell 9% to €1,926 million due to a lack of water. In Portugal, hydro energy production was 26% below the historical average.
EDP is spending money though, with €1,788 million in 2015 invested mostly in hydro and wind capacity projects.
Debt is not a good story with a 2% rise to €17.400 million at the end of 2015, due to the acquisition of a Brazilian power station, foreign exchange losses, and costs associated with the company’s investment in the ENEOP wind consortium.
The president of EDP, António Mexia, said of the results that "it’s an interesting and challenging time for the sector, including tax and regulatory issues.
Mexia was asked by the press how he will react if the Social Tariff is extended to 1 million of its poorer customers.
Further than suggesting that any system needs to be transparent, the EDP boss would not comment, engaged as he is with the current €7 million fine for not promoting this low cost Social Tarrif scheme to EDP customers as it affects his bottom line.
EDP "is in favour of measures to protect vulnerable customers and is available to find the most effective and fair way to solve the problem.”
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