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Iberdrola UK profits drop with winter demand

Iberdrola, the parent group of Scottish Power, has reported a 6.8 per cent drop in Q1 profits from its UK networks business and a 3 per cent fall from the generation and supply part of the UK business for the same period.

The company said the network business’s Ebitda of €288.5 million is in line with expectations and reflects the phasing of investment in the distribution and transmission networks. It added that the 3 per cent fall in UK generation and supply Ebitda to €224.6 million was due to milder weather in the first three months of the year.

Renewables Ebitda in the UK was down 27% to €108.4m in Q1 2016, compared to a record first quarter in 2015.

At a group level, Iberdrola recorded a Q1 net profit of €868.7 million, a 3.3 per cent increase on the same period of the previous year. Ebitda was €2.08 billion in the first three months, down by 6 per cent, which the company said was “due to atypical factors recorded in the quarter, which are likely to be offset during the year”. 

Scottish Power Renewables closed Europe’s largest wind turbine contract for a single project in a major deal with Siemens for a 102 turbine offshore wind project this week.