The company has been left reeling after the removal of subsidies to its wind projects in Spain, resulting in a 13% fall in revenue to EUR 1.6 billion from global renewables. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also dropped, falling to EUR 926 million from EUR 1.2 billion a year earlier.
Iberdrola said that the reforms in Spain had an impact of EUR 255 million on its EBITDA, and meant the price it got for its renewable energy globally fell by 14%. But EBITDA was also impacted by low production in Spain and the US, down 7.3% and 2.1% respectively.
However, there was a better margin both in the UK, up 3.3% and Latin America, where it rose by 75.6%, as a result of new capacity coming on line.
The commissioning of several wind projects in Mexico and Brazil increased the average operating power in Latin America by 27%, which, in addition to a higher load factor, has led to a 49% increase in production.
An 18% increase in the average price of power led to the gross margin growing to EUR 66 million.
Understandably, the company is shifting its renewables investment away from Spain, with no major investment in the country during the period. More than 60% of renewables investment was aimed at wind projects in the UK, with EUR 337 million invested in offshore developments, followed by investments in the US that came to EUR 167 million.
Iberdrola reached an installed onshore wind power capacity of 13.9GW after having added 255MW over the last 12 months. The company also commissioned the 389MW West of Duddon Sands offshore project in the Irish Sea.