Iberdrola Results H1 2018

• Iberdrola obtained an ordinary net profit of €1.368 billion in the first half of 2018, 27% more than in the same period last year. This increase is due to the positive performance of international business, the growing return from the €20 billion invested over the past five years, improved efficiency and the normalization of the operating conditions in its core markets.
• Iberdrola’s revenues were €17.586 billion in the first half, an increase of 17.5% versus first half 2017.
• The group’s gross operating profit (Ebitda) increased by 17.1% to reach €4.435 billion.
• In addition, Ebitda shows a positive trend in all businesses. Renewables Ebitda grew 25.5% to €1.184 billion; Networks rose by 20.7% to €2.387 billion and that of Generation and Supply by 1.7% to €877.6 million.
• Besides the €20 billion invested throughout the past five years, Iberdrola’s net investments amounted to €2.478 billion in the first half of 2018, with 42% of the total allocated to Networks, 36% to Renewables and 22% to Generation and Supply, in line with the group’s strategy of focusing on regulated businesses with predictable returns.
• Iberdrola also installed 423 new megawatts (MW) of renewable capacity between the months of January and June. In the second half of 2018, the company plans to commission another 2,326 MW of new capacity, out of which 537 MW will be renewables and 1,789 MW of gas combined cycles in Mexico.

ScottishPower Results H1 2018

Business Highlights

Smart Meter Milestone – 1 million installed

ScottishPower has completed the installation of 1 million smart meters.  In total ScottishPower is working with four installation partners across the UK, installing at peak 2,700 meters per day with a UK-wide workforce of over 500 people.

As well as giving customers more control over their energy consumption, the new meters will be an essential element of smarter networks, which will be vital for supporting the increased uptake of electric vehicles in the years ahead.

Customer research has shown that 9 out of 10 customers found the installation process easy and simple. 

Industry figures show that, on average, energy usage per household can reduce by around 350 kWh per annum, and bill quality improves with accurate readings.

Commenting on the milestone, Keith Anderson, ScottishPower CEO, said: “Everyone knows that installing smart meters hasn’t been plain sailing for suppliers.  Challenges have been overcome, with more to face, but it is a major achievement to reach one million installations.

“The potential for customers to reduce consumption and save money is only one benefit. As the energy industry becomes fully digital in the years ahead, the new meters will be a vital cog in a smart network that supports electric vehicle charging, manages locally produced renewable energy and even the storage of electricity at home.

“We will work closely with the Government to keep momentum moving in the right direction. As it stands one million of our customers now have greater control over their energy at home, and we will be working hard to continue the rollout of this technology to benefit all of our customers.”

Business Results

SP Energy Networks: 

• EBITDA: £399.9m - compared to £388.0m H1 2017 (up 3%)

Returns for SP Energy Networks (SPEN) continue in line with expectations against record levels of investment. The RIIO ED1 distribution investment programme is delivering £3 billion in the period 2015 to 2023, with the RIIO T1 transmission programme delivering £2 billion between 2013 to 2021. During H1 2018 seven new windfarms (totalling 489 MW) have been connected to SPEN’s transmission network.  Since the start of RIIO T1 over 1,360 MW of new renewable energy has been connected.  Five of the new windfarms were connected to a recently completed 80km section of network in South West Scotland.  This major £260 million project required 1.1 million tonnes of stone for foundations and 86km of new access roads.

Generation and Supply:

• EBITDA: £165.8m - compared to £40.8m H1 2017 (up 306%)

Generation and Supply has recovered from the very poor performance in 2017, but remains down on the same period in 2016 (down 19% from £205.9m). Average customer consumption has increased in the first half of the year by 4% – mainly due to cold weather in Q1. Across the full year 2017 ScottishPower’s margin for supplying gas and electricity was -0.3%. In 2018 ScottishPower is seeking to deliver a margin in the region of 4%. in line with a typical year and other retail sectors. Customer numbers are approximately 4.9 million compared to approximately 5 million at the end of Q1 2018.

ScottishPower Renewables:

• EBITDA: £205.1m - compared to £161.6m H1 2017 (up 27%)

Wind power production increased to 2,404 GWh, 15% higher than the first half of 2017. This follows the completion of a £650 million investment programme to build 8 new onshore windfarms in Scotland. In the first half of the year offshore construction work has started on the 714MW East Anglia ONE project. First power is expected in 2019, with full operation during 2020.

Commenting on the results, Keith Anderson, ScottishPower CEO, said: “All of our business areas are performing in line with expectations. Our investment in onshore wind last year has seen an increase in electricity generated, and excellent progress has been made on delivering the £2.5 billion East Anglia ONE project. We expect first generation of electricity next year.

Networks also continues to see major investment. We are delivering a smarter and more robust grid system to support renewable energy connections, as well as planning for the anticipated increased uptake of electric vehicles in the years ahead.

Generation and Supply has improved on the poor results in 2017, moving towards a more typical year. We expect further details on the proposed Price Cap in the second half of the year, and expect the market to remain challenging.”

To view Iberdrola's full press release and supporting documentation, please click the links below:

•  Iberdrola obtains an ordinary net profit of €1.368 billion in the first half of 2018, an increase of 27%
•  Access all the documentation regarding the First Half 2018 Results Presentation