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Iberdrola Multiplies Q1 Profit By 2.6 Buoyed By ScottishPower Integration, Strong Performance Of Renewables And Planned Asset Sales

17/04/2008

Chairman Ignacio Galán announces first quarter results to the AGM in Bilbao

IBERDROLA MULTIPLIES Q1 PROFIT BY 2.6 BUOYED BY SCOTTISHPOWER INTEGRATION, STRONG PERFORMANCE OF RENEWABLES AND PLANNED ASSET SALES

The Group recorded net profit of € 1,204 million in the first quarter of 2008, more than for the full year 2004, with continued efficiency gains

  • The Group, to which ScottishPower contributed 25% of operating profit, initiated asset sales foreseen in the 2008-10 Strategic Plan, with capital gains above those initially estimated
  • IBERDROLA RENOVABLES achieved a first quarter profit higher than the total for 2007 thanks to the incorporation of assets prior to its IPO and to increased wind production

IBERDROLA multiplied profit in the first quarter of 2008 by 2.6 thanks to the integration of ScottishPower and to improved performance in renewable energy, Chairman Ignacio Galán will announce during the Company’s AGM in Bilbao today. Detailed results will be announced on April 21.

The Company, which continued to improve efficiency levels during the quarter, registered a net profit of €1,204 million, an increase of 162% over €458 million for the same period of 2007 and exceeding that for the entire 2004 year. This will result in an increase in the EPS of 90%.

IBERDROLA increased operating profit (Ebitda) by 65% and initiated the process of asset sales envisaged under the 2008-10 Strategic Plan totalling €3 billion. Capital gains realized so far have exceeded initial estimates.

Speaking as Chairman of IBERDROLA RENOVABLES, Ignacio Galán told the AGM that the renewable energy subsidiary’s first quarter profit has exceeded the  €117.5 million recorded for the entire year 2007. He said this profit rise is the result of both the incorporation of assets prior to the Company’s IPO last December and also an 80% increase in wind production leading to a rise of nearly 150% in revenues.

The advance data on first quarter performance underlines the positive impact of IBERDROLA strategy over the past years, especially in 2007 when it consolidated a place among the world’s largest utilities with a market capitalization of €53 billion.

IBERDROLA completed an historic year in 2007 with the closing of the friendly integration of ScottishPower, launch of an agreed takeover of U.S. company Energy East and the IPO of IBERDROLA RENOVABLES, world leader in its sector.

The Company also unveiled its new 2008-10 Strategic Plan, continuing the path successfully undertaken more than seven years ago and involving a new investment phase in which €24.2 billion is being assigned to consolidate basic energy business both in Spain and abroad.

IMPORTANT INFORMATION

This announcement is not an offer for sale of securities in the United States, nor in any other jurisdiction. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking information and statements about Iberdrola S.A and Iberdrola Energías Renovables, S.A. and otherwise, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions. 

Although Iberdrola, S.A. and Iberdrola Energías Renovables, S.A. believe that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Iberdrola, S.A. and Iberdrola Energías Renovables, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Iberdrola, S.A. and Iberdrola Energías Renovables, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public documents sent by Iberdrola, S.A. and Iberdrola Energías Renovables, S.A. to the Comisión Nacional del Mercado de Valores.

Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Iberdrola, S.A. and Iberdrola Energías Renovables, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. ,Iberdrola Energías Renovables, S.A. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available on the date hereof. Except as required by applicable law, neither Iberdrola, S.A. nor Iberdrola Energías Renovables, S.A. undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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