Iberdrola’s Renewables Unit Posts Weaker Results

Spanish energy company Iberdrola’s  renewables division recorded a gross operating profit (EBITDA) of EUR 1.14 billion in the first nine months of 2016, down 3.3% compared to the first nine months of 2015, due to the poorer performance and the exchange rate effect in the United Kingdom.

The company’s renewables division is currently building 1,064 new megawatts (MW) in offshore wind power, 1,923MW in onshore wind power and 336MW in solar photovoltaic facilities. Between the last quarter of this year and 2018, a total of 2,284MW of new renewable capacity is expected to be commissioned.

On offshore wind, the highlight of the period is progress being made at the 350MW Wikinger wind farm in German waters of the Baltic Sea which is expected to be fully commissioned next year.

Iberdrola is also making progress on the 714MW East Anglia One project located in UK waters which is expected to be commissioned in 2019. 70% of the supply contracts for the construction of this facility have already been awarded, the company said.

In addition, progress is being made on the 496MW Saint-Brieuc offshore wind farm project in French waters, scheduled for commissioning in 2022.

Overall, the company recorded EUR 2.042 billion net profit in the first nine months of 2016, up 6.4% on the same period a year earlier, despite a 9.1% drop in revenues which was offset by a reduction in operating and financial costs.

Iberdrola reported EUR 21.54 billion in revenues for the period. The company’s recurring net profit rose by 17% to EUR 1.96 billion.

EBITDA stood at EUR 5.729 billion, a 4.2% increase which would grow to 6.7% if foreign exchange impact were excluded, Iberdrola said. Of the total amount, 76% come from businesses that are regulated or which have long-term contracts.

Iberdrola made investments worth EUR 3.04 billion in the first nine months of the year, 45% more than in the same period of 2015. Of that amount, 63.5% was allocated to growth, mostly in the renewables, networks and regulated or long-term contract generation businesses.