Iberdrola's renewables EBITDA inches up by 3.1% in Q1 2016
Wind turbines at work. Author: Nick Cross. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.
The renewables business of Spanish utility Iberdrola (BME:IBE) increased its EBITDA in the first quarter of 2016 by 3.1% year-on-year as the US and Spain made up for weaker showing in the UK.
The division's earnings before interest, tax, depreciation and amortisation (EBITDA) grew to EUR 441.6 million (USD 499.3m), the company's report showed today.
In Spain, EBITDA rose 16.8% to EUR 174.3 million on the back of higher output, while in the US, EBITDA was up 30.1% to USD 115.3 million, reflecting increased production and positive one-off.
In the UK, however renewables EBITDA fell 24.7% to GBP 83.8 million (USD 122.2m/EUR 108m), dragged down by lower output.
Latin America EBITDA was stable at EUR 24.5 million, while the rest of the world segment posted a rise of 4.1% to EUR 29.3 million.
The Spanish group continued to increase its renewables capacity, which mainly consists of wind installations, and at the end of the period it had 14,812 MW. Highlights included the first foundations of the 350-MW Wikinger offshore wind farm in Germany and the commissioning of the 63-MW Black Law onshore wind extension in the UK.
Iberdrola's overall EBITDA fell 6% to EUR 2 billion, hit by "atypical factors that will be offset during the year." Recurring net profit grew by 5.1% to EUR 837 million.
The firm confirmed its outlook for 2016, with an expected increase in profits of around 5%. The company forecasts a positive performance by its Networks business. The Generation and Retail unit and Renewables are expected to improve or at least repeat their 2015 results.
The company has 1,346 MW of renewable capacity under construction, including 428 MW in the UK, 744 MW in the US, and 174 MW in Brazil.