Iberdrola sees higher profits on renewable energy

Spanish power giant Iberdrola reported Thursday first half profits up 6.6 percent at 1.56 billion euros ($2.24 billion) on a sound performance from its renewable energy sector. Sales rose 1.5 percent to 15.55 billion euros while Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) were up 4.4 percent to 4.0 billion euros. It noted two significant operations during the six-month period. In January, Iberdrola acquired Brazilian energy company Elektro from Britain's Ashmore Energy International for $2.4 billion (1.8 billion euros). In March, it announced it would absorb its renewable energy arm, Iberdrola Renovables, in which it already holds 80 percent. That deal, which increased its total capital, also allowed it to dilute the stake of its main shareholders, construction company ACS, with which it is in conflict. The renewable energy business showed a gross operating profit of 785.1 million euros in the first half, a rise of 11.1 percent. It generated 16.8 percent more power and accounted for 20.1 percent of total company energy output. "For the first time it exceeded that from nuclear plants (16.4 percent of the total) and hydro (14.4 percent)," it said.