The Spanish electricity company Iberdrola increases its profit forecasts

The Spanish electricity company Iberdrola said on Wednesday that the record investment made in the last six months as well as the good performance in America offset the lower earnings of several of its units in Spain and the United Kingdom. , increasing its profit forecasts for the year.

The group posted a profit before interest, taxes, depreciation and amortization of 2.39 billion euros for the second quarter, which is well above badysts' expectations of 2.31 billion euros and a net profit of 681 million euros. euros, against 641 million euros expected by badysts.

Revenues for the second quarter – € 8.14 billion – were stable compared to the same period in 2018. In the first half of the year, Iberdrola posted a net profit of € 1.64 billion. euros, an increase of 16.6% compared to 1.41 billion euros. during the same period last year.

On Wednesday, the group raised its net profit target for the entire year from "more than 10%" to "more than 10%".

The group said the increase reflected record investment of 3.05 billion euros in the first half of 2019, up 23.2 percent from 2018; 44% of investments were invested in renewable energy projects and 40% in transmission and distribution networks.

"This double-digit growth highlights the success of our business model, based on a commitment to clean energy, regulated badets offering stable and predictable returns, and the ability to grow." geographical diversification considered judicious, "said Ignacio Galán, President and CEO of Iberdrola.

The Spanish energy group is one of the largest renewable energy badet bases in the world, with operations in the United States, the United Kingdom, Mexico and Brazil, apart from its domestic market.

The company plans to install 5,250 megawatts of new capacity in 2019, of which 75% will be in service during the second half of the year, and has announced that it will exceed its goal of developing 13,000 megawatts of new capacity between 2018 and 2022.

In the first half, a 22% increase in production and supply revenues in Mexico, to 1.17 billion euros, and a 9.7% increase in network activities of its Neoenergia unit in Brazil, at 2.94 billion euros, offset the fall in renewable energy revenues in Spain and production and distribution activities in the United Kingdom.

In Spain, the turnover of renewable energy business declined by 23.3% in the first six months of 2019, to reach 702 million euros. Production has declined due to lower precipitation and wind. In the United Kingdom, where Iberdrola is the owner of Scottish Power, the turnover decreased by 13.6% to reach 2.41 billion euros during the period due to the sale of Thermal badets and the decline in demand.

During the first exchanges in Madrid, shares rose 0.4% to 8.60 euros.

During an IPO that began on July 1, Neoenergia, of which Iberdrola owns just over 50%, collected about 3.36 billion rubles ($ 853 million), a value $ 4.9 billion.