edp announcement

EDP to sell 2 CCGT plants and B2C supply business in Spain for €515 million

Monday 18, May 2020

EDP to sell 2 CCGT plants and B2C supply business in Spain for €515 million

EDP - Energias de Portugal, S.A. (“EDP”), agreed to sell a portfolio of thermal assets and supply clients in Spain to Total. The disposed portfolio comprises:

  1. Two CCGTs power plants (Castejón I & III), with 843 MW of installed capacity located in Navarra, North of Spain;
  2. The B2C energy supply business in Spain, which includes 1.2 million clients in free market, and the 50% stake in our joint venture with CIDE for electricity supply in this segment (CHC Energia).

The agreed transaction value represents an Enterprise Value of €515 million (with equity value subject to customary adjustments up to the completion of the transaction). The transaction is expected to be completed in the second half 2020, following the fulfilment of the applicable corporate restructuring and regulatory conditions.

This transaction results from a proactive portfolio optimization strategy under execution by EDP, as defined in the 2019-2022 Strategic Plan, and framed within the reshaping of the Iberian Portfolio which aims at reducing exposure to thermal and merchant activities in Iberia. With this transaction EDP clearly surpasses its €2 billion disposals target in Iberia, while securing at the same time 65% of the €6 billion target of total expected disposal proceeds, (including asset rotations), providing the company added flexibility in managing the remaining execution of the plan.

This deal delivers significant value crystallization, highlighting once again the quality of the EDP portfolio, reinforces the low risk profile of EDP and the weight of regulated and LT contracted activities on EBITDA.  The transaction is expected to be earnings enhancing on a recurrent base versus 2019-2022 Business Plan assumptions and with a positive impact on Net Debt/EBITDA of 0.1x.

Spain will continue to be a key market in EDP’s portfolio, where the Group continues investing in renewables, electricity networks and energy supply and services. In supply, EDP keeps developing competitive offers in the B2B segment and is growing into new energy solutions, such as distributed generation and electric mobility services, in line with EDP’s mission of leading the energy transition to create superior value.

This information is disclosed pursuant to the terms and for the purposes of the article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council and of article 248-A of the Portuguese Securities code.

 

EDP – Energias de Portugal, S.A.