IBERDROLA RENOVABLES, leading world wind power company(1), posted consolidated net profit of €167.6 million for the first nine months, down 27,4% on the same period in the previous year amid falling energy prices in Spain. Nonetheless, EBITDA rose by 6% to €813.7 million, boosted by the international business which now accounts for 53% of the total.
The Company has strengthened its position as global leader in terms of both capacity and output. Installed capacity has grown by 23.4% from September 2008 to 10,477 MW at the September 2009 close. By the end of the third quarter, the Company’s capacity outside Spain reached 50.3% of the total, surpassing domestic capacity for the first time.
Operation capacity increased by 2,274 MW in the period, to 9,844 MW. This has drove output by 24.4% to 15,052 million kWh, despite the lower wind power registered during the quarter, especially in Spain and the US.
In the first three quarters, operating cash flow also grew by 9% to €623 million. During this period, IBERDROLA RENOVABLES has continued to make progress towards its target of improving efficiency, prompting a 12% decline in unit operating costs.
The Company remains financially robust, with €11.5 billion in equity at the end of September. At 25.2%, its leverage ratio is one of the lowest in the sector.
IBERDROLA RENOVABLES remains on track with its investment plans and expects to have 10,750 MW of installed capacity by year end and 12,500 MW by the end of 2010. At the end of September, 807 MW were under construction, 368 MW (45.6%) of which was in the USA.
This growth will be possible thanks to the company’s pipeline, the largest in the world, which stood at more than 57,400 MW(2) at the close of the third quarter, having risen by more than 2,800 MW in 12 months. IBERDROLA RENOVABLES’ widely diversified pipeline (42% of projects are located in the US, 25% in Spain, 9% in the UK and 24% in the Rest of the World) and its assets in operation currently benefit from the favourable regulatory treatment of renewable energy in its strategic markets.
United States, main growth market
In coming years, much of the growth will be in the United States. Ambitious renewable energy growth targets and a favourable regulatory framework make this country especially attractive.
IBERDROLA RENOVABLES has received $546 million in cash grants from the incentive programme to support renewable energies, which are offered by the US Treasury Department to companies investing in the country as part of the economic stimulus package. These grants, which temporarily replace Production Tax Credits, represent direct funding of 30% of investments made in each renewable energy installation commissioned or at the beginning of construction in 2009 and 2010.
IBERDROLA RENOVABLES will fully reinvest these grants and any further grants received in the future in the USA. In fact, the Company expects to perceive other 30 million dollars before the end of 2009.
The Company, which is among the top ten in the Ibex 35 by market capitalisation, operates in 23 countries. It is the largest investor worldwide in the sector, having allocated €10 billion to growth since it was created in 2001.
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This document has been prepared by Iberdrola Renovables, S.A. (the “Company”) in relation with the announcement of third quarter of 2009 earnings.
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