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Iberdrola / ScottishPower Q2 2019 Group Results

24/07/2019

Iberdrola announces first-half results for 2019: posts net profit of €1.644 billion (+16.6%); invests a record €3 billion (+23%).

Ignacio Galán, Group Chairman, said: "This double-digit growth highlights the success of our business model, based on a commitment to clean energy, regulated assets with stable and predictable returns, and a well-judged geographical diversification.

“I’m pleased to confirm that we’re delivering on our Strategic Outlook faster than expected, which allows us to announce an upward revision of our full-year net profit guidance,” Galán stated.

Ignacio Galan


Iberdrola Q2 Results Highlights

  • €3.054 billion investment: the group’s largest figure over a six-month period. 48% of capital expenditure was allocated to renewable energy and 40% to regulated transmission and distribution networks. Over the past 18 months, investment reached a record €8.375 billion
  • Increased capacity: 75% of the new 5,250 megawatts (MW) expected to come on stream over the course of 2019 will do so in the second half of the year. At this rate, the target of installing 13,000 MW new capacity by 2022 could be exceeded
  • Good performance of international businesses: gross operating profit (EBITDA) grew by 12.5% to €4.99 billion, due to the positive performances in the United States, Mexico and Brazil and the contribution of the Wikinger offshore wind farm, which offset lower contributions from the Networks and Renewables businesses in Spain and the Generation and Retail business in the UK
  • 2019 guidance: net profit growth for the year is to be revised upwards to double-digit levels. This follows the good results for the first six months, the new capacity coming on stream, cost savings and divestments, and efficiency measures

ScottishPower Q2 2019 Results

ScottishPower Renewables

  • EBITDA £213.4m (+£8.2m; +4%)

Increase in Ebitda of £8.2m, +4% with higher energy prices compensating for lower wind volumes in the second quarter.

Networks

  • EBITDA £417.2m (+£17.3m; +4%)

The returns for SP Energy Networks are on-target as the business delivers the RIIO-ED1 distribution investment programme, which runs until 2023, and the RIIO T1 Transmission investment programme until 2021.

Liberalised

  • EBITDA £48.8m (-£117m; -71%)

The Liberalised business EBITDA decreased due to the very mild 2019 winter (in comparison to Q1 2018 which saw the ‘Beast from the East’) and the impact of the UK Government’s Price Cap. The disposal of the generation business to Drax also had a small impact.

In comparison to Q2 2018, ScottishPower retail customer numbers have fallen by 120,000.

Q2 2018 4.87million and Q2 2019 4.75million.


Commenting on the results, Keith Anderson, ScottishPower CEO, said: “A milder winter, in comparison to 2018’s Beast from the East, together with the ongoing price cap, has impacted our Liberalised business. But a positive performance in Renewables and Networks at the mid-year reflects ScottishPower’s sustained delivery of innovative and green investments – the wind generation and new infrastructure we need to deliver the UK’s long-term net zero ambitions.

“As the first energy company to go 100% Green, we welcomed the legislation to underpin the UK’s commitment to Carbon Net Zero, and we’ve committed to investing £2billion in 2019 to support the race to Zero. The UK now has the opportunity to use the Energy White Paper, expected later this year, to provide the framework that will allow the regulator, government and industry to efficiently and cost-effectively decarbonise the UK economy.”

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