Spanish utility giant Iberdrola records €2.41 billion profit and urges action on climate change

SPAIN’S mega-huge electricity, gas and services company, Iberdrola, has recorded a €2.41 billion net profit for the third quarter of 2017 – up 18.4% on the same period last year.

Poor results in Spain were compensated by good results from their worldwide businesses.

A drought in Spain meant the first nine months of the year saw low hydroelectric power production – some  57.2% below 2016 levels.

And Spain’s  renewables output was also affected by low wind resource but  results improved elsewhere growing 34.7% in the UK.

Europe’s second-biggest power company by market value, is also the owner of Scottish Power in the UK.

But the UK core profit fell 77 percent to €53 million euros in the nine months to September partly due to the depreciation of the pound, lower output following the closure of a coal-fired power station in Scotland, an increase in regulatory costs, weaker gas sales and narrowing profit margins.

In the first nine months of 2017, Iberdrola carried out investments worth €3.99 billion, up by 31.5% from the same period last year. 

91% of investments were allocated to networks, renewable energy and long-term contracted generation.

The group has 7,400 MW of new capacity under construction, of which 2,700 MW are expected to be commissioned by the end of 2018.

Since announcing the results Iberdrola’s Chairman Ignacio Galan has called on governments, corporations from all sectors of the economy and other actors across the world to take firm action on combating climate change.

Speaking at the COP23 summit in Bonn he said,  “Time for talking has passed, it’s time for action now!” 

Citing Iberdrola’s decision to close their remaining coal power plants in Spain he said, “Iberdrola has set very strong targets to reduce carbon emissions, meaning we will reduce our carbon intensity by 50% in 2030. In this sense, we have made the tough decision to close all of our fuel oil and coal-fired power plants around the world (almost 7,500 MW), and focus on renewable technologies -which are essential for the electrification of the economy (especially in transport)-, as well as on the required network infrastructures and storage capacity to ensure supply.

“Iberdrola will continue to do our part, but we need other industries and companies to follow our lead”.