Business digest: Spanish results

Iberdrola Renovables expects net profits for year-end 2009 to at least match the EUR390 million scored in 2008.

That will require a considerable improvement on its performance so far this year. Net profit for the six months to the end of June is EUR148.5 million, 23% down on the same period last year, reports the company.

Chairman Ignacio Galan says the half-year drop is mainly due to falling wholesale electricity prices in Spain, where the company earned 17% less for each unit of electricity generated than in 2008. His upbeat forecast for the year rests on the firm's increased activity abroad, he says, where just over half of its 10 GW of renewables capacity is installed, with wind contributing 9.6 GW.

Operational profit, or earnings before interest, taxes, depreciation and amortisation (EBITDA), for the six months was EUR581.6 million, up 6% on the same period in 2008. In the US, where 35% of Iberdrola Renovables' assets are located, including 3.1 GW of wind, EBITDA was up 74.3% after a rush of new installations last year.

Galan says over half the company's growth will come from its American activities over the next four years, with a US wind investment plan of EUR4.2 billion ($6 billion). Of the 1036 MW of wind projects it has under construction, 723 MW is in the US. Globally, the company is maintaining its forecast for 1.6 GW of new installed wind in 2009 and maintains its goal for 12.5 GW of total installed capacity by end 2010. It already owns more wind plant than any other single company.

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