Rising renewable output boosts Scottish Power profits

First quarter profits for Scottish Power and parent company Iberdrola received a boost following increased renewable power output, financial results show.

Earnings before interest, tax, depreciation and amortisation for Scottish Power were 7.7% higher across the generation and supply business to €197.7 million (£162.7 million), due to increased hydro power output over one of the wettest winters on record.

Scottish Power’s three hydro power plants at Cruachan, Galloway and Lanark, which total 561MW of capacity, saw output increase by 55% to 281 GWh, the report said.

In addition to rainy weather the UK also saw much windier conditions than in the same quarter a year ago, boosting Scottish Power’s total renewable output by 38.7% to 1,089 GWh.

Output was also supported by the deployment of increase installed capacity from 1,245 MW to 1,532 MW, the bulk of which was in Scotland, the results said.

Spanish-based Iberdrola saw its net profit rise 8.4% to €952.6 million in Q1 2013 with EBITDA down by 0.3% at €2.126 billion, but for the generation and supply business EBITDA was up 24% to €915.5 million.

Weather conditions were again a key driver of year-on-year gains with the company attributing stronger results to “higher generation output in Spain, with hydroelectric output up 87% due to rainier conditions as well as a good performance by the gas storage business in the US affected by the harsh winter there.”

In February this year the Group said that of its €9.6 billion planned investment programme for 2014 to 2016, 41% would be into the UK, through new investment projects focused on power distribution and transmission networks and renewables, while just 15% would be invested in Spain to fund maintenance projects.