Iberdrola Profit Increases on Renewable Energy, Weaker Euro

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Iberdrola SA, Spain’s largest electricity company, reported first-half profit that beat analysts’ estimates as earnings were boosted by a weaker euro and the performance of its renewables business.

Net income rose to 1.51 billion euros ($1.7 billion) from 1.4 billion euros a year earlier, the Bilbao-based company said Wednesday in a statement. That average estimate of eight analysts surveyed by Bloomberg was 1.3 billion euros.

Profit from its Scottish Power unit in the U.K., the utility’s second-biggest market, was boosted as the euro declined 8.7 percent against the pound in the first six months of the year. Iberdrola’s renewables division posted a 22 percent gain in earnings before interest, taxes, depreciation and amortization.

Iberdrola’s electricity output fell 5.3 percent during the period, led by a decline in Spain as hydropower production slumped 39 percent in the company’s biggest market. Sales increased 6.2 percent to 16.1 billion euros from a year earlier, it said.

Debt climbed to 26.2 billion euros through June from 25.7 billion euros a year earlier, the company said.

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