The company now expects its recurring profit to end the year at between 1.2 billion euros ($1.29 billion) and 1.3 billion euros, up from 1.1 billion euros estimated previously.
EDP on Thursday reported an 83% jump in nine-month net profit to 946 million euros with recurring profit doubling to around 1.03 billion euros, thanks to higher hydroelectric production in Iberia and as it booked more earnings from the Brazilian unit after taking over 100% of its capital.
EDP shares rose 3.25% on Friday on the back of the results and improved outlook.
Gains from the renewable asset rotation activity - in which EDP sells older renewable farms, crystallizes value and invests in new ones with greater added value - grew 38% to 393 million euros and also helped the bottom line.
CEO Miguel Stilwell said EDP posted "sound results and has positive prospects for the fourth quarter, driven by the recovery in Iberia and better than expected asset rotation execution", which should continue to more than offset the impact of rising interest rates and inflation.
"We are very confident for the remaining part of 2023... also backed by an improved energy market outlook," he told a conference call.
He said that, after a severe drought last year, its dams in Portugal were now 70% full, 16 percentage points above average and at a 10-year high for this time of year.
EDP also expects to achieve a recurring EBITDA of around 5 billion euros this year, after it rose 26% to 3.83 billion euros and sees net debt falling to 15 billion euros in December from 16.9 billion euros in September.
($1 = 0.9331 euros)
(Reporting by Sergio Goncalves; editing by Andrei Khalip and David Gregorio)
By Sergio Goncalves