February 26 (Renewables Now) - Spanish power group Iberdrola SA (BME:IBE) booked a net profit of EUR 3.4 billion (USD 3.7bn) in 2019, up by 13% year-on-year, on the back of a record amount of investments.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 8.1% to EUR 10.1 billion, crossing the EUR-10-billion mark for the first time, the company said today.
While the EBITDA growth recorded by the company’s networks and generation and retail business lines reflected their solid performance, especially in some key markets, the renewables business was severely hit by the low hydroelectric output, most notably in Spain.
As a result, the renewables EBITDA was down by 2.4% to EUR 2.38 billion as increased wind power production could not make up for the losses left by hydro.
Revenues grew by 3.9% to EUR 36.4 billion.
Iberdrola ramped up investment activities last year, pouring EUR 8.16 billion in almost all of its business lines. Of the total investment volume, 41% was dedicated to renewables.
The company installed 5.5 GW of new capacity, of which 2.8 GW were renewables.
Iberdrola plans to invest more than EUR 10 billion in 2020, seeking to add 4 GW of new installed capacity and increase the regulated asset base by around 4%.
According to the company’s forecast, net profit will exhibit growth at “high single-digit” levels, excluding pre-tax capital gains stemming from the sale of its stake in Siemens Gamesa Renewable Energy SA (BME:SGRE). The growth rate is expected to remain on this path for the next two years.
(EUR 1.0 = USD 1.088)