International utility Iberdrola has seen its net profits increase by 12.2% in the first half of the year despite a 13.6% downturn in Q2.
This, it said, was due to the COVID-19 lockdown, with the pandemic having a €153 million (£139 million) adverse impact on its net profit, which came in at €1.84 billion (£1.68 billion) at the end of June.
Whilst Iberdrola said it suffered the effects of lower demand and the provision for insolvencies - adding that demand and prices are gradually returning to normal in the UK, where it owns ScottishPower - it cited its investment efforts as driving the increase in net profit.
The company accelerated its investments to €3.58 billion (£3.26 billion) in H1 2020, an increase of 2.3% compared to H1 2019.
Ignacio Galán, Group chairman, said: “We are making steady progress in our commitment to invest €10 billion by 2020, demonstrating that the only way to a rapid and sustained recovery is the green economy.”
The energy giant’s gross operating profit (Ebitda) suffered a blow, however, falling 1.4% below that of H1 2019 to €4.91 billion (£4.47 billion). This was primarily due to a lower contribution from its networks business – with Iberdrola owning SP Energy Networks in the UK – which fell by - 10.6%.
Other areas saw growth, however, including generation and supply (14.3%) and renewables (5.3%).
Its networks and renewable energy businesses were allocated 90% of its €3.58 billion investments, with Iberdrola having installed around 1,600MW of capacity in H1 and over 4,900MW in the last year. This is in addition to the 7,500MW it has under construction, it said.
It has a renewable pipeline of 58,000MW, however 60% of this is located in the US and Spain. Iberdrola did add that new projects are being supported by the different plans towards a green recovery approved in the UK, Spain, the United States, Brazil and the European Union.
The company has consistently seen its net profit increase, citing a 17% increase in July 2019 and a 20% increase in October 2019, which it said was on the back of a record investment, predominantly into renewables and networks.
Across 2019, the company reported a 13% increase in net profits.
Whilst its H1 2020 results may have felt the bite of COVID-19, in April the company outlined how its investment in digitalisation, renewables and networks was helping to see it through COVID-19 challenges.