EDPR Sells 80% Stake in 563 MW Renewable Portfolio in US, H1 Profit Down

EDPR has signed a Sale & Purchase Agreement with Connor, Clark & Lunn Infrastructure, to sell an 80% equity shareholding in a 563 MW renewable portfolio in the US.

EDP Renewables (EDPR) a global leader in the renewable energy sector and one of the largest wind energy producers in the world, has signed a Sale and Purchase Agreement with Connor, Clark & Lunn Infrastructure, to sell an 80 percent equity shareholding in a renewable (wind and solar) portfolio located in the United States with 563 MW (450 MW net).

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The portfolio comprises of four winds farms in operation and one pre-COD solar asset, namely:

  • Meadow Lake V of 100 MW, located in Indiana and in operation since 2017;
  • Quilt Block of 98 MW, located in Wisconsin and in operation since 2017;
  • Redbed Plains of 99 MW, located in Oklahoma and in operation since 2017;
  • Hog Creek of 66 MW, located in Ohio and in operation since 2017;
  • Riverstart Solar of 200 MW, located in Indiana and with the start of operations expected in 2021

The total consideration of the transaction corresponds to an Enterprise Value of USD 676 million (for the 80 percent stake), which translates to an implied enterprise value multiple of USD 1.5 million/MW. The transaction is subject to regulatory and other precedent conditions and 363 MW are expected to be completed in the 4Q20 while 200 MW (Riverstart solar project) are expected to be completed in 2021.

With the transaction announced today, EDPR already executed >55 percent of the EUR 4 billion target proceeds for 2019-22, as announced in the Strategic update of March 12, 2019. The sale of majority stakes in projects in operation or under development, allows EDPR to accelerate value creation while recycling capital to reinvest in accretive growth.

The firm has also recently announced that its revenues for the first half of 2020, decreased to EUR 913m (-9 percent YoY), where the impact from capacity MW (-EUR 79m YoY; including Sell-down transactions) and wind resource (-EUR 52m YoY) were not offset by higher average selling prices (+EUR 22m YoY) along with positive impact from forex conversion and others (+EUR 16m YoY).

At the bottom line, Net Profit summed EUR 255m (-26% YoY) mainly driven by lower EBITDA. Non-controlling interests in the period totalled EUR 76m, decreasing by €14m YoY as a result of assets sold.

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.