Iberdrola renewables unit EBITDA stalls in first 9 months of 2017
In the first nine months of 2017, Spanish utility Iberdrola's renewables arm has generated earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.14bn ($1.32bn), flat compared to the same period in 2017. The renewables division was responsible for 21% of Iberdrola's EBITDA and received the greatest investment, with €3.99bn. The company's EBITDA in the UK rose 34.7%, while in Brazil and Mexico it was just 3%.
The renewables business of Spanish utility Iberdrola (BME:IBE) generated EBITDA of EUR 1.14 billion (USD 1.32bn) in the first nine months of 2017, flat on the same period of 2016.

The division's average operating capacity expanded by 4% due to increases in the UK, Brazil and the US, but output declined marginally, by 0.5%, to 24,478 GWh, impacted by lower average load factors, mainly in Spain and Mexico. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 34.7% in the UK and 3% in Brazil and Mexico. In the US, they declined 0.6% but this market now has the largest share - 36%, in the company's renewables earnings.

More details on the performance of the Iberdrola Renewables business are in the table.

EUR million 9-mo 2017 9-mo 2016 Revenue 1,874.9 1,821.8 Gross profit 1,705.2 1,659 EBITDA 1,142.8 1,143.1 EBIT 495 498.5 Pre-tax profit 395.8 372.4 Net profit 334.1 313.7

In the nine-month period, the renewables segment provided 21% of Iberdrola's EBITDA, the second largest contribution after networks with 57%. Renewables, however, got the biggest portion, 48%, of Iberdrola's investment in the period. The company stepped up investment by 31.5% compared to a year ago to EUR 3.99 billion. At the moment, it is building 7,361 MW of capacity to be commissioned by 2020, including 1,412 MW onshore wind, 1,064 MW offshore wind, 336 MW solar and 978 MW hydro. The figure also includes 3,571 MW of combined cycles and co-generation capacity.

At the end of the period, Iberdrola's installed capacity was about 48 GW, 60% of which from renewable sources, led by onshore wind with 15.4 GW and including 12.5 GW of hydropower.

The company's overall EBITDA declined by 5.1% to EUR 5.44 billion, which was attributed to lower hydropower production in Spain and lower demand and margins in the UK's liberalised market. Net profit grew 18.4% to EUR 2.41 billion, aided by a capital gain related to reorganisation in Brazil.

(EUR 1 = USD 1.157)

Choose your newsletter by Renewables Now. Join for free!