EDP Renovaveis SA (EDPR), the renewable- energy unit of Portuguese utility EDP-Energias de Portugal SA, said first-half profit doubled as electricity output increased and it extended the life of its assets.
Net income climbed to 90 million euros ($130 million) from 43 million euros a year earlier following a 27 percent jump in output, EDP Renovaveis said today in a statement. Extending the useful life of operating assets had a net impact of 21 million euros on second-quarter profit as depreciation charges fell.
EDP Renovaveis is expanding wind projects from Europe to the U.S., tapping government support for alternative-energy development. Lisbon-based parent company EDP, which bought Horizon Wind Energy LLC of Texas from Goldman Sachs Group Inc. in 2007, says it's the world's third-biggest wind-park operator.
Nations are adding wind-power capacity in a bid to curb carbon emissions. China spent the most on low-carbon energy last year, investing $51.1 billion, according to Bloomberg New Energy Finance data.
"We are growing soundly," EDP Renovaveis Chief Financial Officer Rui Teixeira said on a conference call today. The company doesn't plan to install wind farms in Asia, he said.
The EDP unit installed 1.4 gigawatts of capacity in the 12 months through June, taking the total to 7.2 gigawatts. In November, the company said it's adjusting planned capacity additions for 2011 and 2012 to 0.8 gigawatts to 0.9 gigawatts a year.
EDP Renovaveis has climbed 6.5 percent in Lisbon trading this year, valuing the company at 4.03 billion euros.
