The renewables business of Spanish utility Iberdrola (BME:IBE) saw its operating profit (EBIT) surge by 69.9% year-on-year to EUR 945.1 million (USD 1.08bn) in the first nine months of 2018.
Earnings before interest, tax, depreciation and amortisation (EBITDA) at the renewables unit rose by 38.1% on the year to EUR 1.76 billion, with net operating expenses going up 7.7% due to higher personnel expenses and operation and maintenance (O&M) costs, driven by the growth in the business, Iberdrola explains in its financial report.
All geographic areas -- Spain, the US, the UK, Brazil, Mexico and the Rest of the World (ROW) -- showed positive performance during the nine-month period, including increased production. Revenues climbed by 29.6% to EUR 3 billion.
At the end of the nine-month period, Iberdrola had 29,592 MW of installed renewable energy capacity, including 15,654 MW and 544 MW of onshore and offshore wind, respectively. The renewable power plants the group owns produced 46,874 GWh of electricity in January-September 2018 compared to 38,432 GWh a year back.
Overall, the group reported a 13.5% decline in net profit to EUR 2.09 billion because of lower extraordinary income and the worsening performance of its Generation and Supply units in Spain. Iberdrola's revenues rose by 19.7% to EUR 26.28 billion, resulting in a 22.5% growth in EBITDA to about EUR 6.72 billion.
The group expects to book a net profit of EUR 3 billion and an EBITDA of over EUR 9 billion in 2018.
(EUR 1.0 = USD 1.141)
Choose your newsletter by Renewables Now. Join for free!