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Low winds hold back Iberdrola, offshore boost for Vattenfall

WORLDWIDE: Spanish developer Iberdrola suffered a 2% fall in earnings in its renewables division for the first half of 2017, following a low-wind period in its home market.

Completion of Sandbank offshore wind farm helped boost Vattenfall's profit (pic: Ulrich Wirrwa/Vattenfall)
Completion of Sandbank offshore wind farm helped boost Vattenfall's profit (pic: Ulrich Wirrwa/Vattenfall)

Earnings before interest, taxes, depreciation and amortisation (Ebitda) in the renewables division totalled €819.6 million for the period, down 2% year on year. Revenues in the division grew 1.9% for the period, to €1.3 billion.

It blamed lower wind generation in Spain for the fall, despite increased earnings from its US and UK businesses growing 31.7% and 2.8% respectively. Iberdrola said the wind load factor in Spain fell 3.4 percentage points to 24.5% in H1, forcing a 12.8% fall in output, compounded by falling prices.

However, higher prices and a re-evaluation of the Brazilian Real helped its renewables unit in Latin America boost earnings by 13%.

For the Iberdrola group overall, Ebitda fell 3.6% year on year, while net profit increased by 4.2% in H1, to €1.52 billion.

Vattenfall profits nearly double

Underlying profit in Vattenfall's wind division in H1 2017 grew to SEK 1.05 billion (€110 million) from SEK 597 million (€62 million) last year.

The Swedish utility put the increase down to the addition of 570MW of capacity in the first half of the year. This includes the completion of the 288MW Sandbank offshore project in Germany and the 228MW Pen y Cymoedd onshore site in Wales. Generation from Vattenfall's wind fleet increased from 2.8TWh in H1 2016 to 3.9TWh this year.

Across the whole group, underlying profit rose from SEK 12 billion to SEK 13.2 billion, while profit for the period increased almost six-fold to SEK 5.9 billion, largely as a result of the sale of the firm's lignite business.

Vattenfall recently announced a reorganisation of its wind division, splitting it in to three sub-units concentrating on onshore wind, offshore wind, and photovoltaic solar and storage.

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