EDP - Energias de Portugal

-4.95%

1. Regulatory Risk: EDP is a highly regulated utility company and is subject to the regulations and laws of the Portuguese government. Changes in these regulations may have a negative effect on their ability to generate revenue and operate at a profitable level.

2. Financial Risk: As a utility company, EDP is heavily exposed to the risks of fluctuating interest rates and increases in the cost of capital. Variations in these rates could affect the ability of the company to finance its operations.

3. Market Risk: EDP is affected by the volatility of the energy markets, which can lead to fluctuating prices for their products and services. This can create profitability challenges for the company.

4. Competition Risk: EDP currently faces increasing competition from both domestic and international energy companies. This could result in a decrease in market share and reduced profitability.

5. Cyber Security Risk: Placing an increased focus on digitalization, EDP faces the risk of cyber-attacks which could lead to significant financial losses.

6. Reputational Risk: A negative incident or public relations gaffe could damage the reputation of the company, leading to a decrease in customer confidence and a decline in revenue.