March 3 (Bloomberg) -- EDP-Energias de Portugal SA, the country’s biggest power company, said full-year profit rose 5.4 percent, helped by higher output from its wind energy projects.
Net income climbed to 1.08 billion euros ($1.5 billion) from 1.02 billion euros in 2009, Lisbon-based EDP said today in a regulatory filing. That compares with the 1.07 billion-euro mean estimate of analysts in a Bloomberg survey.
The former Portuguese power monopoly is spending on new dams and wind turbines in Europe, Brazil and the U.S. to rely less on oil and coal while tapping government incentives for alternative energy. The utility in November cut its average annual investment target for 2011 and 2012 to 2.1 billion euros from an earlier forecast of 2.4 billion euros a year.
“The market context has been demanding,” Chief Executive Officer Antonio Mexia said today at a press conference in Lisbon.
Shares of EDP rose 0.6 percent to close at 2.788 euros in Lisbon today before the earnings announcement. The stock has climbed 12 percent this year, giving the company a market value of 10.2 billion euros.
EDP on May 20 said it forecasts profit will rise annually by an average 6 percent to 8 percent from 2009 to 2012, while earnings before interest, tax, depreciation and amortization will climb 7 percent to 8 percent.
Ebitda rose 7.4 percent to 3.61 billion euros in 2010. Ebitda from the wind energy division climbed 31 percent. Net debt increased to 16.3 billion euros at the end of December from 14 billion euros in 2009, the company said.
EDP in May forecast total installed capacity will increase 20 percent to 24.6 gigawatts in 2012, with wind projects and hydropower plants accounting for 66 percent. A 1-megawatt plant can supply about 1,000 average European homes. The company’s installed capacity increased 7 percent to 22 gigawatts in 2010 and total output rose 9 percent, EDP said on Feb. 3.
EDP Renovaveis SA, the company’s renewable-energy division, plans to install 0.8 gigawatts to 0.9 gigawatts of capacity a year in 2011 and 2012.
The Portuguese government owns 20 percent of EDP and state-owned bank Caixa Geral de Depositos SA holds 5 percent.
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