Iberdrola announced Q1 net profit increased by 15%
Iberdrola obtained a net profit of EUR 963.9 million in the first quarter of 2019, 15% more than in the same period of the previous year, as a result of the more than EUR 5.3 billion invested by the group in the last twelve months. Growth in all businesses and the improvement in cost/income ratio achieved in all countries, especially in Brazil, also allowed the company to increase its gross operating profit by 11.9% to EUR 2.599 billion. Iberdrola chairman Mr Ignacio Galán said that “these results, together with the progress on our various growth initiatives, reaffirm our positive outlook for the full year 2019.”
The company's revenues increased by 8.5% to March, reaching EUR 10.138 billion, and the gross margin improved by 7.8% to reach EUR 4.323 billion for the quarter.
By businesses, Networks posted EBITDA of EUR 1.318 billion, up by 9.9%, with growth in all countries, especially Brazil and the United States. The Renewables business posted operating profit of EUR 683.6 million, up by 13.3%. This business was driven by the increased contribution from renewables in the UK and Latin America, as well as from offshore wind power thanks to the contribution from the Wikinger windfarm, in the German section of the Baltic Sea. Generation & Retail posted EBITDA of EUR 600.5 million between January and March, up by 19.2%, thanks to the positive trends in Spain and Mexico.
The group's cash generation increased by 8.5% in the first quarter, reaching EUR 2.036 billion.
In divestments, an agreement was reached with Lyntia Networks on 6 March 2019 on the assignment of the long-term rights of use for the excess capacity of the Spanish optical fibre network. The total consideration amounts to EUR 260 million and the impact on results for the year has not been included in this first quarter.
Increase in installed capacity: 4,100 new MW in 2019Image
Iberdrola's capital expenditure in the first quarter of the year amounted to EUR 1.2 billion, 87% of which was on Networks and Renewables. Over the past twelve months the company has invested a total of EUR 5.3 billion.
The group continues to increase its capacity. During the first quarter of the year, Iberdrola installed 331 new megawatts (MW), which together with the more than 3,803 new MW scheduled for the remainder of 2019 will bring the total to 4,134 new MW installed over the course of the year. This new capacity will enable the company to increase its annual production by more than 13%.
The group also expects to increase its capacity in 8,800 MW over the period 2019-2022.
Iberdrola currently has the biggest portfolio of renewable energy projects in the sector, in excess of 39,500 MW. The majority of this planned capacity is in the United States (more than 17,900 MW) and the Iberian Peninsula (more than 10.600 MW). The remainder is in the UK (4,300 MW), Mexico (2,600 MW), Brazil (1,900 MW) and the rest of the world (2,300 MW).
This project portfolio is appropriately diversified between wind and solar, and high-quality offshore wind assets.
Source : Strategic Research Institute