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EDP (Baa2/BBB/BBB): 1Q24 Results

UTILITIES

Neutral for spreads. Change in capital allocation doesn't have material impact


• Recurring EBITDA fell 5% YoY, with lower margins on normalising power prices.

• FCF -€600mn (capex timing) moves leverage up to 3.5x from 3.3x QoQ.

• Planned investment reduced by €3bn due to power price outlook. Plans out to 2026 imply minimal deleveraging, BBB rating target.

• FY24 net profit guidance confirmed.

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