October 30, 2019 / 7:27 AM / 3 months ago

Buoyant networks keep Iberdrola on track for 2019 net profit goals

FILE PHOTO: The logo of Spanish utility company Iberdrola is seen outside its headquarters in Madrid, Spain, May 23, 2018. REUTERS/Sergio Perez

MADRID (Reuters) - Spanish renewable energy giant Iberdrola on Wednesday reiterated its double-digit net profit growth guidance for the whole year, supported by a resilient power network business in Brazil and the United States as well as higher offshore wind output.

Supplying energy to more than 30 million people in Spain, the United States, Brazil and Britain, Iberdrola raked in core earnings before interest, tax, depreciation and amortisation (EBITDA) of 7.5 billion euros ($8.33 billion).

This represents an 11.6% rise in the first 9 months of 2019, while net profit rose 20.4%.

Dry weather in Spain and Brazil cramped hydroelectric generation by 25.2%, but higher output from offshore wind and electricity networks in Brazil, the United States and the United Kingdom helped prop up the business.

In Brazil, where it operates through a subsidiary called Neoenergia, a revision of the regulatory framework bumped Iberdrola’s revenues up.

Iberdrola chairman Ignacio Sanchez Galan told Reuters earlier this month that he would consider buying Brazilian power distribution or generation companies.

Of an investment plan worth 34 billion euros in the four years to 2022, Iberdrola plans to invest the lion’s share in its networks and renewable businesses.

Iberdrola added 5.2 GW of new generation capacity in 2019, mainly from renewable sources and is ahead of plans to reach 13 GW of new capacity by 2022.

Reporting by Andres Gonzalez and Clara-Laeila Laudette, Editing by Ingrid Melander

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