Iberdrola reports it obtained a net profit of €963.9 million (US$1.08 billion) in the first quarter of 2019, 15% more than in the same period of the previous year, as a result of the more than €5.3 billion (US$5.92 billion) invested by the group in the past 12 months.
Growth in all businesses and the improvement in cost/income ratio achieved in all countries, especially in Brazil, also allowed the company to increase its gross operating profit (EBITDA) by 11.9% to €2.599 billion (US$2.9 billion).
The company’s revenues increased by 8.5% to March, reaching €10.138 billion (US$11.32 billion), and the gross margin improved by 7.8% to reach €4.323 billion (US$4.83 billion) for the quarter.
The renewables business posted operating profit of €683.6 million (US$763.3 million), up by 13.3%. This business was driven by the increased contribution from renewables in the UK and Latin America, as well as from offshore wind power thanks to the contribution from the Wikinger wind farm, in the German section of the Baltic Sea.
Iberdrola’s capital expenditure in the first quarter of the year amounted to €1.2 billion (US$1.34 billion), 87% of which was on networks and renewables. Over the past 12 months, the company has invested a total of €5.3 billion (US$5.92 billion).
The company continues to increase its capacity. During the first quarter of the year, Iberdrola installed 331 MW, which with the more than 3,803 MW scheduled for the remainder of 2019 will bring the total to 4,134 MW installed over the course of the year. This new capacity will enable the company to increase its annual production by more than 13%.
Iberdrola also expects to increase its capacity in 8,800 MW over the period 2019 to 2022.
One of the projects it is developing is the 880-MW Gouvaes pumped-storage hydro plant in Portugal.
Iberdrola says it has the biggest portfolio of renewable energy projects in the sector, in excess of 39,500 MW. The majority of this planned capacity is in the U.S. (more than 17,900 MW) and the Iberian Peninsula (more than 10,600 MW). The remainder is in the UK (4,300 MW), Mexico (2,600 MW), Brazil (1,900 MW) and the rest of the world (2,300 MW).