Portugal EDP\'s profit slumps 39% on lower power output\, higher tax

Portugal EDP's profit slumps 39% on lower power output, higher tax

The utility, Portugal's largest company by assets whose shareholders last month fended off a 9 billion euro takeover bid by China Three Gorges, netted 100 million euros ($112 million) in January-March, it said in a statementREUTERS  |  May 17, 2019, 08:31 IST
Portugal EDP's profit slumps 39% on lower power output, higher tax LISBON: EDP-Energias de Portugal posted a steeper-than-expected 39% fall in first-quarter net profit on Thursday due to lower electricity output, taxes and other regulatory pressure, while its pre-tax earnings rose slightly.

The utility, Portugal's largest company by assets whose shareholders last month fended off a 9 billion euro takeover bid by China Three Gorges, netted 100 million euros ($112 million) in January-March, it said in a statement.

Earnings before interest, taxes, depreciation and amortization (EBITDA) edged 3% higher to 921 million euros, exceeding expectations.

An average of eight analysts' forecasts published on the EDP web site had pointed to a net profit of 116 million euros and EBITDA of 889 million.

Revenues from energy sales fell 2% to 1.36 billion euros.

EDP said earlier its total generation output fell 13% in the period from a year earlier due to weak hydro and wind resources. Portugal had a rainless start of the year.

In Portugal, EDP paid 18% more in current, deferred and extraordinary taxes on power producers which, combined, reached 166 million euros in the period, the company said.