EDP swings to loss as operating results fall

EDP-Energias de Portugal SA (EDP.LB) swung to a loss in the third quarter, weighed down by a provision and worsened operating performance.

Net loss at the energy group was 83 million euros ($94.7 million) compared with a profit of EUR696 million a year earlier, on revenue that fell 1% to EUR3.75 billion.

Earnings before interest, taxes, depreciation and amortization were halved to EUR688 million, mainly due to a significant one-off gain the year earlier.

On a recurring basis, EDP said Ebitda fell 12%, dragged by a fall in its wind- and solar-power business, as well as its regulated networks unit in Iberia.

The company is currently the target of a takeover bid by its largest shareholder, China Three Gorges Corp. However, the Chinese group’s pursuit has slowed recently amid heightened regulatory scrutiny in the European Union and U.S.

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