Gross operating profit (EBITDA) grew 12.5% due to the good evolution of business in the United States, Mexico and Brazil and the contribution of the German Wikinger offshore wind farm
Iberdrola obtained a net profit of 1,644 million euros in the first half of the year, which represents an increase of 16.6% over the same period of the previous year, as reported by the company on Wednesday to the National Market Commission of Securities (CNMV).
Gross operating profit (EBITDA) until June grew by 12.5%, standing at 4,990 million euros, mainly due to the good evolution of business in the United States, Mexico and Brazil and the contribution of the offshore wind farm German Wikinger, who positively compensate for the lower contribution of the Networks and Renewables businesses in Spain and Commercial in the United Kingdom.
The president of the energy company, Ignacio Sánchez Galán, stressed that the double-digit growth shows “the success” of the company’s business model, “based on the commitment to clean energy, regulated assets and successful diversification geographic. ”
The energy company indicated that these good results for the semester, the entry into operation of new capacity and cost savings, together with efficiency measures, allow it to improve the forecast of net profit growth for the year to double-digit levels.
Iberdrola had already improved its results and dividend forecasts for the whole of 2019 in the first quarter, placing them in a growth in the high single-digit range (around 10%).
“We are executing our strategic plan at a faster rate than expected, which allows us to announce an improvement in our net profit forecast for the end of the year of more than 10%,” Galán said.
In the first six months of 2019, the company shot 23% of its investments, up to 3,000 million euros.
Of this amount, 48%, about 1,440 million euros, were destined to boost renewable energies, while 40% (about 1,200 million euros) went to regulated transmission and distribution networks.
In the last 18 months, the group’s investment has amounted to 8,375 million euros. Of the investments made in the first half of this year, the 68% increase in those destined for clean generation stands out, mainly due to the good progress of the work in the East Anglia One offshore wind farm, in the North Sea ( UK).
As a result of these investments, the company expects that, throughout 2019, 5,250 new megawatts (MW) will enter into operation.
Of this new capacity, 75% will begin to be operational in the second half of the year.
The acceleration of the investment rhythm points to an increase in the objective of developing 13,000 new MW during the 2018-2022 period.
Iberdrola said this would mean increasing its power by more than 40% compared to the start of the plan.
The company cemented this increase in investments in business opportunities presented by the transition to a low-carbon economy in the markets in which it is present, as well as to opportunities in network infrastructure.
By business , Redes obtained an Ebitda of 2,593.5 million euros, 8.6% more, driven by the business in Brazil and the United States, which have increased its operating result by 36.1% and 10.7% , while Ebitda de Generación y Clientes stood at 1,182.7 million euros between January and June, 34.8% more than in the same period of 2018, mainly due to the growth of production in Spain (+ 27.4%) and sales in Mexico.
Meanwhile, the Renewables area registered an Ebitda of 1,165.2 million euros, 1.6% less, affected by lower wind and hydroelectric production in Spain due to weather conditions, which translates into a decrease in its profit operating at 22.6%.
However, he highlighted the positive evolution of the business in Brazil (+ 21.5%), United Kingdom (+ 4%) and Mexico, which increased its production thanks to the entry into operation of new photovoltaic power.
On the other hand, the group continued to develop its financing strategy in the first half, with 5,500 million euros of new resources and focused on green and sustainable formats, with an amount of 4,000 million euros in the year, which keep it as the world leader in issuing green bonds at the company level.
The cash generation of Iberdrola increased by 11.1% to reach 3,880.9 million euros. Thus, the group has improved all its financial ratios. The average cost of its debt was reduced by six points, to 3.43%.
The net debt / Ebitda ratio stood at 3.67 times and the ratio between cash generation and net debt increases to 21.2%.