Iberdrola's H1 renewables EBIT down 8.5% Y/Y

The renewables business of Spanish utility Iberdrola (BME:IBE) experienced an 8.5% year-on-year drop to EUR 591.7 million (USD 659.1m) in its operating profit (EBIT) for the first half of 2019.

Earnings before interest, tax, depreciation and amortisation (EBITDA) at the renewables unit also declined, by 1.6% on a yearly basis to EUR 1.17 billion as the lower output and prices affected its results in the US and Spain. EBITDA at other geographies, meanwhile, including the UK, Brazil, Mexico and Iberdrola Energia Internacional, formerly regarded as the Rest of the World (ROW), showed improvement thanks to rising output or growing prices, as well as the contribution of offshore wind.

Net operating expenses at the renewables business went up by 3.5% in the six months, also affecting the unit’s performance.

The table below gives more details about the segment’s financial results in the first half of 2019.

At the end of June, Iberdrola had 30,362 MW of installed renewable energy capacity, or 3% more than in the year-ago period. The bulk of it, totalling 16,422 MW, came from onshore wind parks, while hydropower accounted for 12,620 MW. The company’s offshore wind capacity stood at 572 MW.

The renewable power plants of the group generated 31,371 GWh of electricity in January-June, compared to 35,127 GWh a year before. While offshore wind production marked a 40.6% year-on-year rise to 1,024 GWh following the commissioning of the 350-MW Wikinger wind park in Germany in October 2018, the output of onshore wind farms was down 6.9% to 18,611 GWh.

Overall, Iberdrola closed the first half of 2019 with a net profit of EUR 1.644 billion, up 16.6% in annual terms, after the tax rate returned to normal levels and non-controlling interests rose. Revenues improved by 3.9% to EUR 18.28 billion, with EBITDA growing by 12.5% to EUR 4.99 billion.

(EUR 1.0 = USD 1.114)

Choose your newsletter by Renewables Now. Join for free!