Spanish utility Iberdrola reported Wednesday a 12.2% year-on-year growth in its first-half net profits, defying the odds and negative impacts of the Covid-19 pandemic in the second quarter.
Net profit for the first six months of the year totaled €1.84 billion, compared with €1.64 billion in the same period last year. The results reflect Siemens Gamesa capital gain, which was also partially offset by taxes in the UK, Iberdrola said in its financial results presentation.
Yet, Covid-19 had a major impact on the company’s financial results in the Jan-June period, led by a 7.7% demand decline, late payments and lower commodities prices.
The average price of Europe’s gas benchmark price, TTF, declined 52% y-o-y in the H1 to €7.5 per megawatt hour (MWh), versus €15.7/MWh in H1 2019.
“Demand and prices are gradually returning back to normal in Spain and the United Kingdom while countries such as the United States and Brazil are progressing the implementation of regulatory recovery measures,” Iberdrola said.
In terms of production, overall generation increased 4.8% y-o-y to 79,299 gigawatts (GW) in H1. Electricity generated from natural gas-fired power plants rose 13.9% to 10,238 GW, while coal-fired power generation was down 32% at 237 GW. Most of the company’s power supply comes from renewables sources.
In fact, Iberdrola is on track to deliver a 58 GW renewables pipeline in the coming years, with projects in countries including the U.S., Spain, UK, Brazil, Mexico. It’s also entering new markets through M&As in Australia, Sweden and France.
“We are making steady progress in our commitment to invest €10 billion by 2020, demonstrating that the only way to a rapid and sustained recovery is the green economy,” said CEO Ignacio Galán.
Investments were up 2.3% in H1 at €3.58 billion, with 1,600 MW new capacity installed in the period.
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