International utility Iberdrola has posted a 20% surge in net profit for the first nine months of 2019, which the company has squared with its “record” investment into renewables and networks.
Unveiling its results for the period running January – September 2019, Iberdrola reported net profit of €2.5 billion, up some 20% year-on-year. That was on the back of a near 12% increase in earnings year-on-year to €7.5 billion.
This surge in performance, the company said, was on the back of a record investment from the firm, predominantly into renewables and networks. More than €4.7 billion has been invested by the firm this year, up nearly 30%, with almost 90% dedicated towards renewables and networks.
Nearly half of Iberdrola’s total investments have been dedicated to new renewables capacity with the utility chasing a target of amassing a generation portfolio of 13GW by 2022. It is now forecasting to have installed 5,218MW by the end of this year, with more than half of that 13GW target now commissioned.
As a result of the performance, Iberdrola has reaffirmed the full-year profit guidance it upgraded three months ago, pointing towards double-digit growth for 2019.
Furthermore, Iberdrola group chairman Ignacio Galán said that the accelerated nature of the company’s investment and early achievement of efficiency and asset turnover targets could pave the way for additional new investments, “creating a virtuous circle of growth and financial strength,” he said.
But while Iberdrola’s networks division thrived – with earnings topping €3.9 billion, up 8.2% year-on-year – there was a minor blip within the company’s renewables division, which reported a 4.5% slide in earnings on the back of lower than expected hydroelectric generation in Iberdrola’s native Spain.
It did, however, point to strong contributions from offshore wind development and new solar PV generation capacity in Mexico, the latter realising a 50% increase in year-on-year earnings.