EDP Fires up its CCGTs in 4Q

Portuguese utility EDP significantly increased gas-fired generation last year in Spain and Portugal, according to 2016 results released late March 2.

Output from its gas-fired power plants (CCGTs) in the Iberian peninsula increased by 43% last year to 5.24 terawatt-hours, with an 86% year-on-year surge in the cold 4Q 2016 “backed by gas’s improving cost-competitiveness relative to coal.” In contrast, coal generation fell by 42% in 2016, offsetting the increase from CCGTs. A 98% rise in its hydro-generation meant that, overall, EDP produced 20.65 TWh in full year 2016 in Spain/Portugal, up 13%.

EDP’s 2016 gas sales on the free market were 28% lower at 19.1 TWh in Spain and 4% lower in Portugal at 3.7 TWh.

Net profit increased 5% to €961mn ($1.01bn) in 2016, although operating profit (Ebitda) fell 4% to €3.76bn.

Financial investments last year of €396mn included acquiring LPG distribution assets from Repsol in northern Spain (€116mn) with a view to later conversion to natural gas, acquiring full control of gas suppliers Portgas (€48m) in Portugal and Naturgas (€38mn) in northern Spain, and equity contributions in Brazil (€122mn) mostly to its Sao Manoel hydro project.

EDP has no controlling shareholder, but its largest owner is Chinese state generator Three Gorges (21.35%) followed by US-based Capital Group (14.99%). Algerian state Sonatrach and Qatar Investment Authority each have slightly less than 2.4% stakes. 

In January, Abu Dhabi state IPIC transferred its 4.06% stake in EDP to Mubadala, which is also 100% Abu Dhabi state-owned.

Mark Smedley