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EDP Renewables 2013 Annual Report

Europe

REVENUES

In Europe, EDPR delivered a 9% year-on-year growth in revenues, to 844 million euros. Increasing growth in Rest of Europe led to a higher contribution to Revenues, reaching 26% in 2013 versus 24% in the prior year. Consequently, the contribution from Spain and Portugal reduced to 55% and 19%, respectively.

The performance was driven by the higher electricity output which more than offset the effect of a lower average selling price. In detail, the increase in revenues was the result of higher revenues in Rest of Europe (+34 million euros), Spain (+18 million euros) and Portugal (+11 million euros). The stronger wind resource drove revenues higher by 123 million euros whereas the lower average selling price partially offset this by 57 million euros.

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AVERAGE SELLING PRICE

The average selling price in Europe decreased 6% to 89/MWh. In Spain the average selling price was impacted by changes in the remuneration framework for renewable assets and in Rest of Europe mainly by the lower realised price in Romania due to lower green certificate prices following some uncertainty created by the approval of Emergency Government Ordinance 57/2013.

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OPERATING COSTS AND INCOME

Net Operating Costs amounted to 236 million euros due to the 30% growth in operating costs and lower other operating income. The increase is mostly explained by the 7% tax on electricity sales introduced in Spain during the year, which negatively impacted results by 32 million euros. Adjusted opex, excluding the 7% tax in Spain and writeoffs, decreased 3% in MWh basis. Other operating income decreased by 34 million euros mainly due to the one-off 32 million euros recorded, in the prior year, related to asset revaluation.

EBITDA in Europe decreased 4% to 609 million euros, leading to an EBITDA margin of 72%, while EBIT reached 359 million euros.

 

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