Press Releases
Iberdrola Renovables Posts First Half Profit Of €148.5 Million With Larger contribution Of International Business
21 July 2009
Consolidating its global leadership with more than 10,000 MW installed worldwide
IBERDROLA RENOVABLES POSTS FIRST HALF PROFIT OF €148.5 MILLION WITH LARGER CONTRIBUTION OF INTERNATIONAL BUSINESS
- EBITDA and cash flow grew by 6% and 7% respectively while unit costs were down 8.2%
- The Company’s strong financial position is underscored by equity of €11.2 billion
- The Company is well placed to attain installed capacity of 12,500 MW by the end of 2010, with the US business driving growth
- IBERDROLA RENOVABLES will benefit from US grants to renewable energy projects with up to $500 million this year
IBERDROLA RENOVABLES, world leader in the wind power segment by installed capacity and output*, posted a first half consolidated net profit of €148.5 million, down 23% on the same period in 2008, amid falling prices and a contraction in energy demand in Spain.
However, strong performance from international business –chiefly the United States business– and its greater contribution to earnings, drove a 6% advance in EBITDA to €581.6 million. In the US, wind business EBITDA grew 74.3%, while in the UK it advanced 65.3%. Operating cash flow grew 7% to €444.3 million.
IBERDROLA RENOVABLES ended the first half of 2009 with 10,003 MW of installed capacity, strengthening its position as world leader in the wind energy segment by installed capacity and output. This represents an increase of 2,054 MW from the same period last year.
Operating capacity increased by 2,239 MW (30%) in the period to 9,625 MW, which drove output growth by more than 2,000 million kWh in the past twelve months to 10,585 million kWh.
IBERDROLA RENOVABLES continues to make progress in efficiency, helping achieve an 8.2% decline in unit costs.
The Company remains financially robust, with equity of €11.2 billion at the end of June and gearing of 26.5%, one of the industry's lowest ratios.
As a result IBERDROLA RENOVABLES remains on track to achieve installed capacity of 12,500 MW by the end of 2010.
Expansion in the US
The US, where the political and regulatory climate is propitious for expansion, will account for a large part of this growth. As part of the economic Stimulus Package, the US government will provide cash grants to promote renewable energy projects, among other things. The ITCs (Investment Tax Credits) offer direct funding for 30% of the investment in each renewable energy facility.
The Treasury Department has announced that it will accept applications from companies from 1 August and start making payments within sixty days. IBERDROLA RENOVABLES, via its US subsidiary IBERDROLA RENEWABLES, expects to receive between $400 and $500 million before the end of the year. These grants will be put to use in the US.
The Company’s project pipeline, the largest in the world, stood at 56,600 MW** at the end of the first half, an increase of 2,500 MW in the last twelve 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.
The Company, which is among the top ten in the Ibex 35 by market capitalisation, paid its first ever dividend as a listed business on 15 July. The payment amounted to gross €0.025 against 2008 earnings, and represented a 27% pay out.
The success of IBERDROLA RENOVABLES, which is present in 23 countries, is largely attributable to its forward-looking strategy: in 2001 the IBERDROLA Group made a groundbreaking commitment to renewable energy. Since then it has invested €9.85 billion in its expansion, making it the largest investor in renewables in the world.
** Includes 10.000 MW as initial estimate for the contribution of Gamesa Energía under the strategic agreement between Iberdrola Renovables and Gamesa Energía
LEGAL NOTICE
DISCLAIMER
This document has been prepared by IBERDROLA RENOVABLES, S.A. (the “Company”) exclusively for use in relation with the 2009 General Shareholders’ Meeting. As a consequence thereof, this document cannot be disclosed or published, nor be used by any person or entity for any other reason without the prior written consent of the Company.
The Company does not assume any liability for the content of this document if used for different purposes thereof.
The information and any opinions or statements made in this document have not been verified by independent third parties; therefore no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions expressed herein.
Neither the Company nor its subsidiaries or other companies of the Iberdrola Group or its affiliates, nor its counsels or representatives assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this document or its contents.
The information contained in this document on the price at which securities issued by Iberdrola Renovables have been bought or sold or on the performance of those securities cannot be used to predict the future performance of securities issued by Iberdrola Renovables.
Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement.
IMPORTANT INFORMATION
This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law (Law 24/1988, as amended and restated from time to time), Royal Decree Law 5/2005 and/or Royal Decree 1310/2005 and its implementing regulations.
In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, nor a request for any vote or approval in any other jurisdiction.
Particularly, this report does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities in the United States of America. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act.
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking information and statements about IBERDROLA RENOVABLES, S.A. and otherwise, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates” and similar expressions. Prior results cannot be used as indicators of future performance.
Although IBERDROLA RENOVABLES, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of IBERDROLA RENOVABLES, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of IBERDROLA RENOVABLES, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, among others, those discussed or identified in the public documents sent by IBERDROLA RENOVABLES, S.A. to the Comisión Nacional del Mercado de Valores.
Forward-looking statements are not guarantees of future performance and they have not been reviewed by the auditors of IBERDROLA RENOVABLES, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All oral or written forward-looking statements attributable to IBERDROLA RENOVABLES, S.A. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to IBERDROLA RENOVABLES, S.A. on the date hereof. Except as required by applicable law, IBERDROLA RENOVABLES, S.A. does not undertake any obligation to publicly update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise.
