Analysts upbeat over Iberdrola despite yearly fall in installed capacity

SPAIN: Spanish renewables giant Iberdrola Renovables' performance over 2009, with 1450MW of new wind capacity put into service, might be the envy of most companies across the sector.

Caption: Iberdrola's 45 MW Dillon wind project went online in 2008
Caption: Iberdrola's 45 MW Dillon wind project went online in 2008

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Nevertheless according to the Iberdrola Renovables’ preliminary industrial results, the figure marked a 34.2% drop on the company’s 2204MW of new installed capacity in 2008.

Similarly, the 4492 GWh of additional production, reaching a total of 21,490 GWh over the year—97% from wind—marked an increase of just 26.4%, against the 71.1% increase in 2008.

Despite this, Iberdrola Renovables has not changed its previous forecast of reaching 12,500MW cumulative installed capacity to end 2010.

Furthermore, the company’s consolidation of its position as the world’s top renewables operator, now with 10,752MW online (all but just over 400MW from wind), has stifled any disappointment at these figures.

Out of 42 analyst firms consulted following Iberdrola’s announcement, 31 made a buy or similar, while seven firms made ‘hold’ or ‘neutral’ recommendations.

Equity investors responded with the company’s share value going up by single percentage points or less in the days following the announcement.

Part of Iberdrola Renovables’ attraction for analysts is its international diversification and grip on booming markets. In total, 54% of the company’s energy production was outside Spain last year.

Most significantly, 2.323 GWh or 37% was produced in USA and 537 GWh or 8.5% in UK, Iberdrola Renovables’ top two overseas markets and representing year-on-year increases of 43% and nearly 44%, respectively.

Furthermore, 714MW, or nearly 50% of the company’s new installed wind capacity, went up in USA, a 25% in the cumulative figure which now stands at 3519MW.

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