Portugal's EDP raises profit outlook on networks strength and asset gains

LISBON, July 30 (Reuters) - Portugal's largest utility EDP on Thursday upgraded its full-year recurring net profit guidance to €1.4 billion ($1.6 billion) from a previous forecast of between €1.2 billion and €1.3 billion made in November, citing stronger performance in its networks business, improved hydro conditions in Iberia and robust gains from asset rotation.

• EDP said the higher recurring net profit outlook was supported by an expectation that 2026 recurring earnings before interest, taxes, depreciation and amortization will reach €5.3 billion, above the €4.9 billion-€5 billion range previously forecast.

• EDP cited in a statement the good execution of investment plans in its distribution networks business, better regulated returns and efficiency gains, and a favourable euro-to-Brazilian real exchange rate.

• It also pointed to Iberian hydro reservoir levels remaining above historical averages in July 2026, as well as stronger forward power prices for the second half of the year supporting the outlook.

• EDP also said its subsidiary EDP Renewables, the world's fourth-largest wind power producer, has more than 85% of its generation volumes secured through long-term contracts or hedging arrangements.

• It said EDPR is expected to generate €300 million in asset rotation gains, at the top end of its previously forecast €200 million-€300 million range, from the sale of stakes in mature renewable energy projects to fund new developments.

• EDP on Wednesday reported a recurring net profit of €753 million ($857.5 million) for the first half, flat from a year earlier, as strong earnings from its renewables and networks unit were offset by lower electricity prices in Iberia.

• The result beat the average analyst forecast of €686 million in an LSEG poll.

($1 = 0.8735 euros)

(Reporting by Sergio Goncalves; Editing by David Holmes)