October 30 (Renewables Now) - The renewables business of Iberdrola SA (BME:IBE) recorded a 16% year-on-year drop in global nine-month net profits to EUR 503.6 million (USD 559.7m), the Spanish energy giant’s latest financial results show.
The renewables unit’s earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 4.5% to EUR 1.68 billion, with less rainfall in Spain and the resulting low hydro-electric output being a major contributing factor to the overall poor performance. Added to this, the business suffered from lower onshore wind load factors in some markets.
The net electricity production from renewables was down by 8.4% to 42,757 GWh.
Net operating expenses at the renewables business went up by 4.5% in the first nine months, further burdening the unit’s results.
More details about Iberdrola’s renewables business in the first nine months of 2019 are provided in the table below:
|Figures in EUR million:||9-months 2019||y/y change|
Iberdrola’s renewables EBITDA increased in Mexico and the UK due to higher outputs and new capacity coming online. Iberdrola Energia Internacional, the market formerly regarded as the Rest of the World (ROW), also recorded growth during the first nine months, underpinned by the 32.1% boost in total production thanks to contributions from the 350-MW Wikinger offshore wind farm in Germany and higher onshore wind factors.
Lower outputs and a combination of other local factors led to a drop in EBITDA in Spain, the US and Brazil.
Overall, Iberdrola posted EUR 2.516 billion in net profits, up 20.4%, in the first nine months, attributing the growth to EUR 4.727 billion in year-to-date investments. The group’s EBITDA rose 11.6% to EUR 7.498 billion, while net revenues slightly grew to EUR 26.457 billion.
(EUR 1.0 = USD 1.11)