Iberdrola's H1 profits slip despite Brazil, Mexico capacity boost

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Friday, October 14, 2016

Spanish energy company Iberdrola saw first half profits drop 3.3% year-on-year despite boosting its installed capacity in Brazil, Mexico, the US and at home.

The company reported earnings of 1.46mn euros (US$1.60mn) as its asset portfolio contracted 1.5% to 103.5bn euros.

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In Brazil the company reported a 0.4% increase in installed capacity at the end of September to 1,170MW, and in Mexico a 4.4% rise to 5,504MW compared with the same time 2015.

Iberdrola is the largest private sector energy generator in Mexico. The company said earlier this year it would bring online 673MW of new capacity in the country by December.

"Mexico is one of the five strategic countries within Iberdrola's internationalization process, and is a very important market. Iberdola plans to invest about US$5bn in Mexico to 2020 and, together with Brazil, comprises the bulk of the company's investment in Latin America," Enrique Alba, the corporate director of local unit Iberdola Generación México, told BNamericas in an interview in August.

Global installed capacity dropped 1.8% at the end of September to 44,544MW compared with the same time last year.

The company's third quarter electricity production in Brazil increased 2% from 3Q15 to 15,151GWh, while in Mexico production declined by 0.7% to 9,738GWh.

Iberdrola's global electricity production declined 3.1% to 31,477GWh compared with 3Q15.