Iberdrola recorded a 6% uptick in operating profit from its renewables business in the first quarter, according to newly-released results for the three months.
The Spanish energy giant said EBITDA for the division stood at €725m in the period and helped to offset a slight fall in profits in its home market.
Earnings were partly driven by a 4% increase in cash flow to €2.1bn thanks to 1.2GW of new projects coming online in the first quarter. The company invested some €810m on new green energy projects in the three months.
Overall ordinary net profit grew 5% to €968m. The sale of the company’s 8% stake in Siemens Gamesa generated proceeds of €1.1bn and a capital gain of €484m in the quarter, bringing reported net profit, which includes non-recurring results, to €1.3bn.
This one-off positive effect will help to mitigate any negative impacts of the COVID-19 crisis throughout the year, said Iberdrola, as it said the impact of the pandemic will be largely cushioned by several factors including the strength of the diversified business model based partly on renewables.
“Looking ahead to the rest of the year, the scheduled investments of €10 billion, the measures adopted in response to COVID-19 and the effect of the non-recurring income from the sale of Siemens Gamesa allow Iberdrola to maintain its forecast for the year. The company therefore expects to grow in terms of both net profit and dividend.”
Chairman Ignacio Galan (pictured) added: “There is complete consensus that the road to economic recovery must be green, with the fight against climate change at its core. The European Green Deal and the National Energy and Climate Plans across the EU already provide a clear pathway. Iberdrola is fully prepared to help deliver these targets.”