May 14 (Bloomberg) -- EDP-Energias de Portugal SA, the biggest power company in Portugal, said it may sell a stake of as much as 14 percent of its Brazilian unit in a public offering as Latin America’s biggest economy expands.
The Portuguese utility currently holds 64.8 percent of the EDP-Energias do Brasil SA unit, Lisbon-based EDP said in a filing posted on the website of Portugal’s securities regulator.
The executive board of EDP decided “to initiate a process towards the potential sale of shares through a public offer up to a 14 percent stake in EDP-Energias do Brasil,” according to the statement.
EDP 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.
Shares of EDP rose 0.6 percent to close at 2.622 euros in Lisbon yesterday before the announcement. The stock has climbed 5.3 percent this year, giving the company a market value of 9.6 billion euros. Energias do Brasil shares climbed 0.8 percent in Sao Paulo today.
EDP on March 3 had said it aims to raise 500 million euros in asset sales this year. EDP’s net debt decreased to 16 billion euros at the end of March from 16.35 billion euros in December.
Wind Energy
The Portuguese power company on May 5 said first-quarter profit rose 11 percent on higher output from wind energy projects and earnings from its Brazilian unit and regulated networks business. The Brazilian unit’s earnings before interest, tax, depreciation and amortization jumped 20 percent in the first quarter.
Brazil grew 7.5 percent last year, the fastest growth since the 1980s. Brazil’s economy will expand 4.5 percent this year, according to estimates by the Finance Ministry.
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, the company’s renewable-energy division, plans to install 0.8 gigawatts to 0.9 gigawatts of capacity a year in 2011 and 2012.
The Portuguese government owns 20 percent of EDP and state- owned bank Caixa Geral de Depositos SA holds 5 percent.
Source: www.businessweek.com
The Portuguese utility currently holds 64.8 percent of the EDP-Energias do Brasil SA unit, Lisbon-based EDP said in a filing posted on the website of Portugal’s securities regulator.
The executive board of EDP decided “to initiate a process towards the potential sale of shares through a public offer up to a 14 percent stake in EDP-Energias do Brasil,” according to the statement.
EDP 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.
Shares of EDP rose 0.6 percent to close at 2.622 euros in Lisbon yesterday before the announcement. The stock has climbed 5.3 percent this year, giving the company a market value of 9.6 billion euros. Energias do Brasil shares climbed 0.8 percent in Sao Paulo today.
EDP on March 3 had said it aims to raise 500 million euros in asset sales this year. EDP’s net debt decreased to 16 billion euros at the end of March from 16.35 billion euros in December.
Wind Energy
The Portuguese power company on May 5 said first-quarter profit rose 11 percent on higher output from wind energy projects and earnings from its Brazilian unit and regulated networks business. The Brazilian unit’s earnings before interest, tax, depreciation and amortization jumped 20 percent in the first quarter.
Brazil grew 7.5 percent last year, the fastest growth since the 1980s. Brazil’s economy will expand 4.5 percent this year, according to estimates by the Finance Ministry.
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, the company’s renewable-energy division, plans to install 0.8 gigawatts to 0.9 gigawatts of capacity a year in 2011 and 2012.
The Portuguese government owns 20 percent of EDP and state- owned bank Caixa Geral de Depositos SA holds 5 percent.
Source: www.businessweek.com
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