Renewables brought EUR 441.6 million net operating profit (EBITDA) to the Spanish utility Iberdrola in the first quarter of 2016, a 3.1% jump compared to the same period a year earlier, as the company’s renewables business reached 14,812 MW of installed capacity by the end of the first quarter.
Overall, the company’s EBITDA stood at EUR 2 billion in the first three months, down by 6% year-on-year ”due to atypical factors” such as eco-tax reversals and exchange rate impacts, which are ”likely to be offset during the year.”
Despite a dip in the overall EBITDA, Iberdrola recorded a net profit of EUR 868.7 million in the first quarter of 2016, a 3.3% increase on the same period of the previous year.
Funds from operations (FFO) are up 2.3%, rising to EUR 1.7bn, while net investments are up 51.1%, standing at EUR 895.6m, 71% of which were allocated to growth projects.
Currently, the company has about 5,000 MW under construction in onshore and offshore wind farms and generation power plants with long-term contracts.
This includes the 350MW Wikinger offshore wind farm for which the first foundations were recently laid , and the 714MW East Anglia One offshore wind farm which will feature Siemens turbines.
Looking ahead, Iberdrola is progressing the implementation of its Strategic Outlook for 2016-2020, which was presented last February.
The levels of performance expected from the businesses in the remainder of 2016 reaffirmed Iberdrola’s outlook for the end of the year, with an estimated increase in profits of around 5%, with the renewables business expected to improve or at least remain at the same level as in 2015.