Iberdrola's renewables earnings fall

SPAIN: Spanish utility Iberdrola has reported a 3% fall in pre-tax earnings for its renewables business, on the back of low production in the UK.

Lower wind speeds in the UK caused Iberdrola's renewables earnings to fall
Lower wind speeds in the UK caused Iberdrola's renewables earnings to fall

The renewables division's recorded earnings before interest, taxes, depreciation, and amortization (EBITDA) of €836.5 million, down 3% year-on-year.

The fall was mainly due to a drop in production in the UK. Output fell 26.2%, Iberdrola said, causing EBITDA from its ScottishPower Renewables UK business to fall 34.4%.

The decrease is blamed on a particularly strong 2015, when output was 27% higher compared with 2014, a spokesperson for ScottishPower Renewables explained.

In Latin America and the rest of the world, Iberdrola said renewable EBITDA was down 2.2% and 4.4% respectively.

The company's other regional business performed well in renewables. In Spain, EBITDA grew 22.7% to €319.7 million, due to a 7% increase in output.

In the US, renewables EBITDA was up 3.9% thanks to a 10.3% rise in output.

Iberdrola maintained its outlook for 2016, with an expected 5% increase in EBITDA across the group. In the first half, the whole Iberdrola group recorded a €3.9 billion – up 1.4% year-on-year.

The firm said performance would not be affected by the UK's decision at the end of June to leave the European Union.

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