EDP First-Quarter Net Income Slips 1% as Tax Costs Increase

EDP-Energias de Portugal SA, the country’s biggest utility, said first-quarter profit slipped 1 percent as tax payments increased.

Net income fell to 335 million euros ($439 million) from 337 million euros a year earlier, Lisbon-based EDP said today in a regulatory filing. That compares with the 292 million-euro mean analyst estimate in a Bloomberg survey. Earnings before interest, tax, depreciation and amortization climbed 7 percent to 1.07 billion euros. Taxes rose 89 percent to 149 million euros, EDP said.

The former power monopoly is spending on new dams and wind turbines in Europe and Brazil to rely less on oil and coal and tap state incentives for alternative energy. EDP plans to invest 2.1 billion euros on average a year through 2015.

EDP said last year it estimates installed capacity will increase 14 percent to 26.4 gigawatts in 2015 from 2011. Hydropower plants and wind farms will represent 73 percent of the utility’s capacity in 2015.

Net debt fell to 18.1 billion euros at the end of March from 18.2 billion euros at the end of December, EDP said today. In a March 6 presentation, EDP reaffirmed 2013 Ebitda will be flat in relation to 2012.

EDP shares fell 0.5 percent to close at 2.61 euros in Lisbon before the earnings announcement. The stock has climbed 14 percent this year, giving EDP a market value of 9.5 billion euros.

The Portuguese government on Feb. 14 sold its remaining 4.1 percent stake in EDP to institutions at 2.35 euros a share. The government in December 2011 agreed to sell a 21 percent stake in EDP to China Three Gorges Corp. for 2.69 billion euros. The Chinese company will also spend 2 billion euros to purchase minority stakes in EDP wind farms by 2015.

To contact the reporter on this story: Joao Lima in Lisbon at jlima1@bloomberg.net

To contact the editor responsible for this story: Stephen Foxwell at sfoxwell@bloomberg.net

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