Iberdrola’s renewables unit ups Q1 EBIT 17.7%

The renewables business of Spanish utility Iberdrola (BME:IBE) has experienced a 17.7% year-on-year rise in first-quarter (Q1) EBIT to EUR 405.2 million (USD 450.8m), with revenues going up 5%.

Iberdrola notes in its quarterly report that gross profit in the renewables business increased by 6.6% to about EUR 1.01 billion and explains that the contribution of its operations in the UK, Brazil and Mexico, as well as offshore wind as a whole, have more than offset the lower production in Spain and the US.

The table below gives more details about the performance of Iberdrola’s Renewables business in January-March 2019.

Overall, Iberdrola reported a 15% rise in Q1 group net profit to EUR 963.9 million on revenues of EUR 10.1 billion, up by 8.5%. It said that gross operating profit (EBITDA) went up by 11.9% to EUR 2.599 billion because of growth in all businesses and the improvement in cost/income ratio achieved in all countries and particularly in Brazil. Group earnings before interest and tax (EBIT) climbed by 17.7% to EUR 1.63 billion.

For the full 2019, Iberdrola now foresees a year-on-year percentage increase in the high single-digit range for its result and its dividend, as opposed to the previously projected mid single-digit improvement.

During the reporting period, the company increased its installed renewable energy capacity to 29,502 MW from 29,976 MW a year earlier, and the majority of that is onshore wind -- 15,749 MW.

Iberdrola says that it currently has the biggest renewable energy project portfolio in the sector, surpassing 39,500 MW. This includes over 17,900 MW of projects in the US and more than 10,600 MW in the Iberian Peninsula. In terms of technology, the figure relates to hydroelectric, onshore and offshore wind as well as solar power.

The company invested EUR 1.2 billion in the first three months of 2019 and 87% of that was in Networks and Renewables.

(EUR 1.0 = USD 1.113)

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