Consolidated EBITDA increased by 13% YoY, to €3,269m in 9M17. Adjusted for one-off impacts (+€61m in 9M16 and +€558m in 9M17; details on page 3), EBITDA was 4% lower YoY, impacted by a 20% YoY decline in Iberia prompted by hydro resources 43% short of LT average in 9M17 (compared to a 66% premium over LT average in 9M16) and the deconsolidation of Naturgas Electricidad Distribuicíón (‘NED’) following its disposal in late Jul-17. Performance in Iberia was partially compensated by: i) 17% YoY increase in EDPR’s contribution to group EBITDA, driven by portfolio expansion (+8% on avg., mainly focused in US, Mexico and Brazil) and by the first farm-down in offshore (Moray project in UK); and ii) 13% YoY increase in the recurring contribution of EDP Brasil, on favorable ForEx impact and an active hedging strategy as tomitigate the deterioration of hydro situation in Brazil.
Installed capacity grew by 8% YoY, to 26.5GW in 9M17, mainly driven by new hydro in Portugal (+977MW) and wind capacity additions (+939MW, the bulk of which in US and Mexico). Portfolio of contracts with customers grew by 1% YoY, to 11.4m in Sep-17.
Operating costs (Supplies and services + Personel costs) rose by +€46m YoY, to €1,207m in 9M17, mostly reflecting ForEx evolution (+€36m in 9M17) and 6% increase in avg. capacity. Excluding ForEx impact, it is worth to highlight by business areas: i) in Iberia, costs fell by 1% YoY reflecting tight cost control; ii) at EDPR level, core Opex/avg MW was down by 2% YoY; iii) at EDP Brasil level, costs grew by 3.5%, slightly below local inflation. Other net operating costs/(revenues) switched from €210m costs in 9M16, to €353m revenues in 9M17, mainly reflecting this year’s gain on the disposal of NED.
Total regulatory costs in Iberia (clawback, social tariff and extraordinary energy tax in Portugal; generation taxes in Spain), amounted to €229m in 9M17 (+26% YoY).
EBIT rose by 23% YoY, to €2,213m in 9M17. Net financial costs and Results with JVs and associates decreased by €56m YoY, to €582m in 9M17, benefitting from a 13% YoY decrease in net interest cost, prompted by a 40bp YoY decline in avg. cost of debt (to 4.1% in 9M17) and lower avg. net debt (-€0.7bn YoY). Non-controlling interests advanced to €239m in 9M17, on higher share of minorities at wind farms and higher net profit of EDPR. Overall, net profit attributable to EDP shareholders was 86% higher YoY, at €1,147m in 9M17. Excluding non-recurrent items (-€46m in 9M16, +€514m in 9M16, as described on page 4), adjusted net profit in 9M17 amounted to €633m (-4% YoY vs. €661m in 9M16).
Net debt fell from €15.9bn in Dec-16 to €15.1bn in Sep-17, mainly reflecting: i) €1.0bn from organic free cash flow; ii) €0.7bn paid as per the annual dividend; iii) €1.0bn from expansion investments and related items, net of disposals, which include net cash proceeds from the portfolio reshuffling announced in Mar-17 (+€2.2bn from the sale of NED and -€0.3bn from the acquisition of an additional 5% stake in EDPR); and iv) €0.4bn increase in regulatory receivables, justified by a slower pace of tariff deficit sales.