- Category: Finance
10 Nov 2009
- Published on Tuesday, 10 November 2009 13:05
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Iberdrola Renovables’ wind complex in Cuenca, Spain. Photo by Iberdrola Renovables
Iberdrola Renovables saw its consolidated net profit for the nine months to September fall by 27.4 percent from 230.8 million euros ($346.8 million) in the same period last year to 167.6 million euros due to falling energy prices in Spain.
However, the Spanish wind power company noted that earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 6 percent from 768 million euros to 813.7 million euros in the comparable period.
The company attributed the boost in Ebitda to its growing international operations which now accounts for 53 percent of its total business.
Iberdrola Renovables is working to strengthen its global position in both capacity and output. For the first time, capacity outside Spain surpassed domestic capacity. Installed capacity grew by 23.4 percent from September 2008 to 10,477 megawatts in September 2009, of which around 50.3 percent is capacity outside Spain.
Production rose by 24.4 percent to 15,052 gigawatt hours during the quarter. Britain and the United States made the biggest increase at 68 percent and 41 percent respectively, while production in the rest of the world climbed by 35.7 percent.
Operational capacity likewise improved by 30 percent over the same period to 9,844 MW.Robust financial structure
The company still believes it has a robust financial structure with 11.5 billion euros in equity at the end of September. It claims that its 25.2 percent leverage ratio is one of the lowest in the sector.
Though Iberdrola Renovables’ business is predominantly in wind, it has been expanding its reach to other forms of renewables. During the third quarter, the company’s first thermo-solar power plant was installed in Puertollano with a capacity of 50 MW; its first biomass plant in Corduente with 2 MW of capacity; and a 2-MW photovoltaic plant in Greece.
The company stated that it remains on track with its investment plans. Its project portfolio covers 57,413 MW, the largest in the world.
Iberdrola Renovables expects to have 10,750 MW of installed capacity by yearend and 12,500 MW by the end of 2010. At the end of September, 807 MW was under construction, 368 MW of which was in the United States, the company’s major target market for growth.
The company also gained $546 million in production tax credits for which the United States Congress approved an extension under the economic stimulus plan.
Iberdrola Renovables, which is listed on the Madrid Stock Exchange, also obtained authorization from the United States Securities and Exchange Commission to begin operating a sponsored, first level American Depositary Receipts program to facilitate access to its shares by American investors.
Meanwhile, back home in Spain, Iberdrola Renovables and Iberdrola Generacion, S.A. Unipersonal reached an agreement for the purchase and sale of wind energy production in the Spanish market. The agreement, which came into force in July, determines set price totals of 46 euros per megawatt hour to be adjusted in the event of market price fluctuations.
Iberdrola also made a strategic agreement with Gamesa Energia S.A. Unipersonal to jointly implement businesses involving the promotion, development and operation of wind farms in some countries in Europe.
- Katrice R. Jalbuena