Iberdrola's renewables earn billions in 9-mo 2021

Spanish electric utility Iberdrola SA (BME:IBE) saw its renewables business boost net profit by over 270% to EUR 1.28 billion (USD 1.48bn) during the first nine months of 2021, the company’s financial results show.

The business unit booked an operating profit, excluding interest and taxes, of EUR 1.99 billion, an increase of 165.5% year-on-year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped by 70.9% to EUR 3.04 billion on the back of a 12.7% increase in power production, which grew with more installed capacity and the higher consolidated load factor, Iberdrola said.

The unit closed the reporting period with revenues of EUR 3.9 billion, up 32.8%, and a gross profit growing by 33.6% to EUR 3.55 billion.

Iberdrola’s renewables were the most successful in Spain, where the net profit of EUR 1.09 billion during the nine months of 2021 towered over EUR 99.1 million posted in the same period a year ago.

In the UK, the net profit of EUR 173.4 million in January-September 2020 turned into a EUR-48.4-million loss this year as onshore wind power production dropped by 24.7% due to the lowest wind levels in 30 year, according to Iberdrola.

The renewables business increased net profit in the US and Brazil, turned a net loss into a profit in Mexico and reported lower figures from the market formerly known as the Rest of the World, the results show.

Globally, Iberdrola produced 55,139 GWh of renewable power in net terms, a growth of 10.4%. Its net owned installed capacity also rose by 10.4% to 37,378 MW of renewable energy.

The Iberdrola Group as a whole grew the adjusted net profit by 5.2% to EUR 2.68 billion. Once the effects of the COVID-19 pandemic and higher taxes in the UK and Spain are included, the reported net profit totalled EUR 2.4 billion, or 10.2% less compared to the nine-month period in 2020.

(EUR 1.0 = USD 1.259)

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