Iberdrola reported net profit of 2.804 billion euros in 2017, up 3.7% from a year earlier. Consolidated EBITDA fell by 7.8% to 7.318 billion euros last year. The results were impacted by the US tax reform and difficult operating conditions in Spain.
Cepsa wants to open up a gap for itself in the sector for commercialisation of residential electricity and gas, with the aim of grabbing a 1o% share over the coming years. It will thus become one of the four main operators along with Endesa, Iberdrola or Gas Natural Fenosa.
The planned IPO of Neoenergia, the biggest electricity company in Brazil and leader in Latin America by number of clients, with 13,4 million, has not gone ahead. The firm is the result of the merger between Iberdrola’s subsidiary Neoenergia and Elektro.
In 2016, the electricity system registered a surplus of 421,45 million euros, according to the final figure for the year released by The National Commission on Markets and Competition (CNMC in Spanish).
Iberdrola has asked the Energy Minister to authorise the closure of its thermal power plants in Lada, Asturias and Velilla in Palencia, the only two operational coal power plants the group has left. With their closure, it will conclude the process of shutting down its thermal plants across the globe.
Droughts are not new in Spain, but current year is the third driest year of all time, behind 1981 and 2005. This situation is hitting the hydroelectric capacity of both Spanish utilities Iberdrola and Endesa. In fact, hydroelectric production in Spain fell almost 58% as reservoirs are at 37% capacity when they are normally at 60% during this time of the year.
Iberdrola, Enel and EDP, along with other European energy groups, have sent a letter to the European Commission and the European Parliament calling for more ambitious objectives with respect to renewable energies in the EU.
Víctor Peiro (GVC Gaesco) | The emerging markets are performing well this year and so the context is favourable for revisiting the privatisation process in those countries. Brazil is set to sell off a raft of different assets, including state-owned utility Electrobrás. Several big Spanish companies could be interested in acquiring these assets.
Spain’s big utility companies have accused the Energy Ministry of “driving investors away” with their strategy of revealing the next milestones in the energy reform to the large investment banks. The main electricity firms (Iberdrola, Endesa, Gas Natural and REE) saw almost 3 billion euros shaved off their market capitalisation in just one day.
Iberdrola is sounding out possible acquisition opportunities in the European energy sector and Innogy is on its radar. According to financial sources, the Spanish firm could be interested in launching a bid for the German utility company.