EDP-Energias de Portugal SA, the country's biggest utility, said first-quarter profit rose 11 percent on higher output from wind energy projects and earnings from its Brazilian unit and regulated networks business.
Net income climbed to 342 million euros ($499 million) from 309 million euros a year earlier, Lisbon-based EDP said today in a regulatory filing. That beat the 286 million-euro mean estimate of analysts in a Bloomberg survey.
The former Portuguese power monopoly is spending on new dams and wind turbines in Europe, Brazil and the U.S. to rely less on oil and coal while tapping government incentives for alternative energy. The utility in November cut its average annual investment target for 2011 and 2012 to 2.1 billion euros from an earlier forecast of 2.4 billion euros a year.
EDP on March 4 said it plans to invest about 2.2 billion euros in 2011 and 2 billion euros in 2012, and said it forecasts "low single digit growth" in earnings before interest, tax, depreciation and amortization and in profit for 2011. EDP on March 3 said it aims to raise 500 million euros in asset sales this year.
Ebitda rose 7.3 percent to 1.01 billion euros in the first quarter. Ebitda from the wind energy division climbed 19 percent. Net debt decreased to 16 billion euros at the end of March from 16.35 billion euros in December, the company said.
Installed Capacity
EDP last year forecast total installed capacity will increase 20 percent to 24.6 gigawatts in 2012, with wind projects and hydropower plants accounting for 66 percent. A 1- megawatt plant can supply about 1,000 average European homes. The company's installed capacity increased 7 percent to 22 gigawatts in 2010.
EDP Renovaveis SA (EDPR), the company's renewable-energy division, plans to install 0.8 gigawatts to 0.9 gigawatts of capacity a year in 2011 and 2012.
EDP fell 1.1 percent to close at 2.67 euros in Lisbon today before the earnings announcement. The stock has climbed 7.2 percent this year, giving the company a market value of 9.76 billion euros. The Portuguese government owns 20 percent of EDP and state-owned bank Caixa Geral de Depositos SA holds 5 percent.
