The combined effect of a hydro power recovery with purchases on the wholesale market at lower prices led EDP’s EBITDA to surge in Q1 23 (+7% vs cons). The group confirmed its 2023 guidance at €1.1bn of net income, which is in line with our expectations. However, the non-normative feature of the hydro contribution leads us to remain cautious as a potential drier summer coupled with a rebound in wholesale market prices could potentially dampen the outlook in the coming quarters.
