EDP Renovaveis Meets EBITDA Expectations, Clawback to Be Milder Than Expected; Shares Fairly Valued

We are currently maintaining our fair value estimate of EUR 22 for no-moat EDP Renovaveis as we roll our model to include full fiscal 2022 results. EDP Renovaveis’ EBITDA was EUR 2,157 million, slightly above consensus expectations of EUR 2,125 million, and having grown 23% year over year. During the year, EDP Renovaveis rotated nearly 1 GW of capacity. Net profit fell short at EUR 616 million versus the anticipated EUR 634 million as construction delays in Colombia resulted in a noncash impairment of EUR 54 million.