Iberdrola 9-month net earnings came to €1,831.4 million, down 19.5%, but Ebitda was up 1.4% at €5,211 million, reflecting solid operating performance during the quarter after a flat trend in the first six months.
The results reflect solid operating performance in the businesses. The negative impact of regulatory measures in Spain and the drought in Brazil are partially offset by a 2.5% increase in production, efficiencies from the production mix and improved performance from renewables in the US, UK and Latin America following investments there in recent years.
In the UK Ebitda 11% higher with offshore wind generation now making a contribution and positive exchange rate movements.
Revenues were 3.1% lower at 22,196.8 million while gross margin improved 0.5% to €8,874.2 million as a result of lower purchases. Net operating expenses were 3.6% higher at €2,528.8 million. Levies were 9.5% lower at €1,134.7 million, of which 63% or €716.8 million, corresponded to Spain.
Ebitda rose 1.4% to €5,210.7 million with regulated businesses accounting for 69% of the total. Generation, supply and gas was up 26.4%, offsetting a 20.1% drop in renewables while networks were flat at -0.5%. This result and a positive contribution from the businesses in the third quarter and current exchange rates have led Iberdrola to raise its Ebitda guidance for the full year to above €6.6 billion.
Despite the good operating results, net earnings were down 19.5% at €1,831.3 million, reflecting not only regulatory measures but also the one-off revaluation of balance sheet assets in the first half of 2013 under Law 16/2012.
Operating cash flow was down 10.3% at €3,998.4 million but exceeded gross investments of €2,344 million.
This performance has allowed the Company to maintain its commitment to offering shareholders a minimum annual remuneration of €0.27 gross per share. This is equivalent to a dividend yield above 5% at current share prices.
Group liquidity stood at €9,950 million, sufficient to cover financing needs for 32 months.