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    Alberto Gandolfi • Goldman Sachs

    Alberto Gandolfi's questions to EDP SA (EDPFY) leadership

    Alberto Gandolfi's questions to EDP SA (EDPFY) leadership • Q1 2025

    Question

    Alberto Gandolfi from Goldman Sachs questioned why EDP was not upgrading its 2025 guidance, given that net income before gains was already at 40% of the target and reservoir levels were high. He also asked about capital allocation strategy in Spain, specifically if EDP would still increase CapEx if allowed returns were set at a relatively low 6.5%.

    Answer

    CEO Miguel de Andrade cited several reasons for maintaining guidance, including non-recurring gas margins from the prior year, lower hedge prices for the remainder of 2025, and declining market prices in April. On Spanish returns, he stated that 6.5% seems low to attract necessary investment and that any CapEx decision would depend on the entire regulatory framework, not just the headline return rate.

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    Alberto Gandolfi's questions to EDP SA (EDPFY) leadership • Q1 2025

    Question

    Alberto Gandolfi from Goldman Sachs questioned why EDP did not upgrade its 2025 guidance, given that net income before gains is already at 40% of the target and reservoir levels are high. He also asked about capital allocation priorities, specifically whether EDP would still increase CapEx in Spain if regulated returns were set at a relatively low 6.5%.

    Answer

    CEO Miguel Stilwell de Andrade responded that the current guidance considers factors like lower hedged prices for the rest of the year compared to last year and lower market prices in April. He noted that a 6.5% return in Spain seems low to attract necessary private investment and that a decision on CapEx would depend on the entire regulatory framework, not just the return rate.

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