Iberdrola In Clover as Renewables Shine

Spanish energy giant Iberdrola recorded a net profit of EUR 2.42 billion in 2015, 4.1% more than the previous year, attributed largely to the company’s thriving renewables division.

The company’s EBITDA rose to EUR 7.3bn, a 4.9% increase on 2014.

The Renewables division marked a 18.6% jump in EBITDA year-on-year, which stood at EUR 1.58bn, and was driven by the recovery of prices in Spain and the good performance in Latin America and the United Kingdom, where the contribution of the 389MW West of Duddon Sands Offshore Windfarm was particularly noteworthy, the company said.

Iberdrola also plans to invest around EUR 8 billion in its renewable energy projects by 2020, according to the company’s new Outlook presented today.

Overall, Iberdrola has set aside EUR 24 billion to invest by 2020, 33 per cent of which will go towards renewables, according to the new Outlook.

70 percent of the planned investments, or around EUR 17bn, is set aside for further growth, 90% of which has already been committed, Iberdrola said.

Once these investments are complete, Iberdrola expects that by 2020, 81% of its gross operating profit (EBITDA) will be from regulated businesses or long-term contracts, compared to the current rate of 75%.

In terms of how profits will evolve, Iberdrola expects both EBITDA and net earnings to increase by an average of 6% per year until 2020. On the other hand, funds from operations (FFO) accumulated over the 2016-2020 period will amount to EUR 34.5bn, exceeding investments in all businesses.

Iberdrola’s emissions will be reduced 50% by 2030 and the company will be carbon-neutral by 2050, the statement said.