EDP’s first quarter results were down 23% on the same period last year, mainly due to the sale of its natural gas distribution business in the Iberian Peninsula and adverse exchange rates.EDP still earned €166 million in the first quarter of this year, but the only part of the business that grew was wind and solar power generation.
In all the other business areas, the results were worse than in 2017.
The business of producing and selling electricity in Spain and Portugal, a major part of the group, fell by 8%, according to today’s company statement to the Securities and Exchange Commission (CMVM).
Overall EBITDA (earnings before interest, taxes, depreciation and amortization), were down 12%.
The energy group, led by António Mexia, is to receive a lower taxpayer subsidy (CMEC payment) to 2017 (€154 million) and faces a court battle over tax bill of around €250 million which the company's board refuses to authorise.
These CMEC payments are being investigated by the Public Prosecutor's Office, after a former Economy Minister, Manuel Pinho and EDP’s António Mexia, among others, are suspected of colluding to inflate the payments beyond a figure deemed necessary to keep electricity production capacity at agreed levels.
Of significant concern is EDP's net debt at the end of March, standing at €13.82 billion, although this was slightly below the €13.9 billion reported at the end of 2017.
Of significant concern is EDP's net debt at the end of March, standing at €13.82 billion, although this was slightly below the €13.9 billion reported at the end of 2017.
