Wind energy firm EDPR's profit falls 56% on lower capital gains

Lisbon: EDP Renovaveis, the world's fourth-largest wind energy producer, said on Wednesday its first-half profit fell 56 per cent due to much less capital gains than a year ago, despite rising sales on the back of solid growth in power production. EDP's renewables arm said net profit dropped to 93 million euros ($107.4 million), sligthly below the 118 million euro average forecast by analysts polled by LSEG. EDPR said it booked only 12 million euros in capital gains from the sale of wind and solar parks - part of a strategy of disposing stakes in mature plants to finance new ones - in the first half, compared to 171 million euros a year ago. It said in a statement that, excluding capital gains, underlying recurring net profit rose by 80 million euros, reflecting a "significant improvement in the profitability of the operating asset portfolio, driven by increased electricity production levels and improved operational efficiency". Revenues grew 18 per cent to 1.4 billion euros, supported by a 12 per cent increase in power production to 21.2 terawatt-hours, with North America representing 60 per cent of total generation output and Europe 27 per cent , the Portuguese company said. Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) fell year-on-year by 1 per cent to 948 million euros, in line with forecasts. Excluding capital gains, recurring EBITDA grew 20 per cent .