Portugals EDP swings to quarterly loss on Ukraine war impact, drought

LISBON Reuters – Portugal‘s largest utility EDPEnergias de Portugal swung to a firstquarter loss of 76 million euros 80 million from yearago profit of 180 million, hit by energy market turbulence due to Russia’s invasion of Ukraine and a drought at home.

EDP said in a statement that skyrocketing energy prices in the Iberian wholesale market and the drought had a negative impact on its accounts worth 400 million euros.

Even as its overall electricity output rose 3 to 17,055 gigawatt hours GWh in the quarter, supported by an 11 increase in wind power, hydro generation in Iberia slumped 64 due to a severe drought in Portugal and Spain, forcing EDP to nearly double generation from expensive gas and coal plants.

Its consolidated earnings before interest, taxes, depreciation and amortisation EBITDA fell to 710 million euros, compared do 864 million euros a year ago.

In Portugal, the OctoberMarch rainy season was the driest since 1931, and the government in early February ordered EDP to halt electricity production at several of its dams.