Iberdrola 2015 Profit Boosted by Renewables, Networks Units

  • Company increases dividend by 4% to 0.28 euros a share
  • Ebitda at Spain's largest power company rises 4.9 percent

Iberdrola SA, Spain’s largest power company, said full-year profit rose 4.1 percent amid a jump in earnings at its renewables and networks business.

Net income climbed to 2.42 billion euros ($2.65 billion), the Bilbao-based company said Wednesday in a statement. That’s in line with the estimates of 11 analysts surveyed by Bloomberg. The company increased its dividend by 4 percent to 0.28 euros a share.

Earnings at Iberdrola’s renewables business grew 19 percent, boosted by a
recovery in prices in Spain and the performance of its Latin American and U.K.
units. The utility expects net income to grow in 2016 from increased earnings
in its networks, generation and retail units, while renewables is seen stable. It forecasts annual average earnings growth of 6 percent for the 2016-2020 period.

“We will be investing in networks and renewables in the U.S. and the U.K. as we see stronger growth in 2016 from our regulated business,” Jose Sainz Armada, chief financial officer at Iberdrola, said by phone. “The increase in the dividend is in line with the company’s cash flow generating capacity and our confidence in our five year plan.”

Iberdrola shares fell 1.5 percent to close at 5.869 euros a share in Madrid, the lowest closing level since Sept. 29. The stock is down 10 percent this year, matching the decline in the Stoxx 600 Utilities index.

Total earnings before interest, taxes, depreciation and amortization rose 4.9 percent to 7.3 billion euros. Earnings rose 1.2 percent at the utility’s generation and retail business, and grew 1.9 percent at its networks unit.

Iberdrola sees more than 24 billion euros of investment in the 2016-20 period, the company said in an investor presentation.

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