Consolidating its global leadership with more than 10,000 MW installed worldwide
IBERDROLA RENOVABLES POSTS FIRST HALF PROFIT OF €148.5 MILLION WITH LARGER CONTRIBUTION OF INTERNATIONAL BUSINESS
- EBITDA and cash flow grew by 6% and 7% respectively while unit costs were down 8.2%
- The Company’s strong financial position is underscored by equity of €11.2 billion
- The Company is well placed to attain installed capacity of 12,500 MW by the end of 2010, with the US business driving growth
- IBERDROLA RENOVABLES will benefit from US grants to renewable energy projects with up to $500 million this year
IBERDROLA RENOVABLES, world leader in the wind power segment by installed capacity and output*, posted a first half consolidated net profit of €148.5 million, down 23% on the same period in 2008, amid falling prices and a contraction in energy demand in Spain.
However, strong performance from international business –chiefly the United States business– and its greater contribution to earnings, drove a 6% advance in EBITDA to €581.6 million. In the US, wind business EBITDA grew 74.3%, while in the UK it advanced 65.3%. Operating cash flow grew 7% to €444.3 million.
IBERDROLA RENOVABLES ended the first half of 2009 with 10,003 MW of installed capacity, strengthening its position as world leader in the wind energy segment by installed capacity and output. This represents an increase of 2,054 MW from the same period last year.
Operating capacity increased by 2,239 MW (30%) in the period to 9,625 MW, which drove output growth by more than 2,000 million kWh in the past twelve months to 10,585 million kWh.
IBERDROLA RENOVABLES continues to make progress in efficiency, helping achieve an 8.2% decline in unit costs.
The Company remains financially robust, with equity of €11.2 billion at the end of June and gearing of 26.5%, one of the industry's lowest ratios.
As a result IBERDROLA RENOVABLES remains on track to achieve installed capacity of 12,500 MW by the end of 2010.
Expansion in the US
The US, where the political and regulatory climate is propitious for expansion, will account for a large part of this growth. As part of the economic Stimulus Package, the US government will provide cash grants to promote renewable energy projects, among other things. The ITCs (Investment Tax Credits) offer direct funding for 30% of the investment in each renewable energy facility.
The Treasury Department has announced that it will accept applications from companies from 1 August and start making payments within sixty days. IBERDROLA RENOVABLES, via its US subsidiary IBERDROLA RENEWABLES, expects to receive between $400 and $500 million before the end of the year. These grants will be put to use in the US.
The Company’s project pipeline, the largest in the world, stood at 56,600 MW** at the end of the first half, an increase of 2,500 MW in the last twelve months. IBERDROLA RENOVABLES’ widely diversified pipeline (42% of projects are located in the US, 25% in Spain, 9% in the UK and 24% in the Rest of the World) and its assets in operation currently benefit from the favourable regulatory treatment of renewable energy in its strategic markets.
The Company, which is among the top ten in the Ibex 35 by market capitalisation, paid its first ever dividend as a listed business on 15 July. The payment amounted to gross €0.025 against 2008 earnings, and represented a 27% pay out.
The success of IBERDROLA RENOVABLES, which is present in 23 countries, is largely attributable to its forward-looking strategy: in 2001 the IBERDROLA Group made a groundbreaking commitment to renewable energy. Since then it has invested €9.85 billion in its expansion, making it the largest investor in renewables in the world.
* Source: New Energy Finance
** Includes 10.000 MW as initial estimate for the contribution of Gamesa Energía under the strategic agreement between Iberdrola Renovables and Gamesa Energía