Iberdrola Renovables Posts €113.6 Million First-Quarter Profit Despite Lower Prices In Spain


Despite a weaker Spanish market, EBITDA held steady on the back of strong international performance


  • EBITDA grew by 50.2% in the United States and by 26.2% in the UK, while in Spain it fell by 19.6%
  • The company cemented its global leadership by raising installed capacity by 27.3% and output by 20% in the first quarter
  • The company’s solid balance sheet is reflected by €11.4 billion in equity and gearing at 24.9%, one of the industry's lowest

IBERDROLA RENOVABLES posted net earnings of €113.6 million in the first quarter of 2009, 10.1% down on the same period last year. The decline chiefly reflected weaker electricity prices in Spain.

Power output prices on the Spanish market slipped by 34% year-on-year
-from 67 to 44.3 euros per megawatt hour (MWh)- over the quarter to reach the lowest level anywhere in the European Union.

The company offset this scenario with its geographical diversification strategy. A strong international performance edged EBITDA 0.1% higher to €338.1 million. By region, EBITDA was 19.6% down in Spain. It was 50.2% up in the United States, 26.2% up in the UK, and 12.4% higher in the Rest of the World.  The company now obtains 50.1% of its earnings outside Spain.

IBERDROLA RENOVABLES remains financially robust, with €11.4 billion in equity at the end of March and gearing of 24.9%, one of the industry's lowest.

IBERDROLA RENOVABLES cemented its world leadership in wind power*, raising installed capacity in the first quarter of 2009 by 27.3% (322 MW) to 9,624 MW. Output rose 20% to 5,397 million kilowatt hours (kWh). The company, which operates in 23 countries, owes its strong performance largely to its forward-looking strategy, reflected in IBERDROLA’s decision in 2001 to commit to renewable energy.

In the first quarter of the year, the company expanded its project pipeline –the world’s largest- by around 900 MW to a total 56,000 MW.** IBERDROLA RENOVABLES’ widely diversified pipeline (41.9% of projects are located in the US, 24.6% in Spain, 9.1% in the UK and 24.4% in the Rest of the World) and operating fleet currently benefit from favourable regulatory treatment of renewable energy in its strategic markets.

Regulatory support

In the United States, the Stimulus Package has given renewable energy utilities a powerful boost.  The new law makes it easier for utilities to collect government grants and singles out the sector for federally funded support. Moreover, in a recent finding, the US Environmental Protection Agency acknowledged for the first time the negative effects of CO2 emissions pose a threat. This opens the door to regulatory action favouring renewable energy.

One of IBERDROLA RENOVABLES’ goals for the rest of the year is to continue to grow in its main markets while enhancing efficiency. Over the coming months, the company will open Europe’s largest wind farm, Whitelee in Scotland, with an initial 322 MW, a solar thermal plant in Puertollano, Ciudad Real, a biomass plant in Corduente, Guadalajara, among other projects.

* Source: New Energy Finance
** Includes a contribution of 10 GW from Gamesa to joint ventures following the strategic agreement between Iberdrola Renovables and Gamesa Energía

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