Alexa

Spanish utility Iberdrola predicts big rise in profits

Spanish utility Iberdrola predicts big rise in profits

Spain's second-biggest electricity utility, Iberdrola, said Wednesday it plans to increase its net profit about 75 percent by 2009 from the 2005 results to euro2.35 billion (US$2.99 billion).
Iberdrola, which most analysts believe will be the next driving force in the consolidation of Spain's energy sector, did not mention any merger and acquisition plans.
The company said it will meet its target of doubling its size and earnings by the end of 2006 as part of five-year plan that dates back to 2002. A new three-year strategic plan is begin next year.
Iberdrola said it will invest about euro9 billion (US$11.5 billion) through 2009, with about euro1 billion (US$1.3 billion) of that coming from divestments of non-strategic assets.
The company said it expects double-digit net profit growth in 2010 and 2011, with euro6 billion (US$7.6 billion) in investments, most of them in international operations.
Iberdrola's shares were up 0.5 percent to euro35.70 (US$45.50) in Madrid trading.
The company's market capitalization has almost tripled since 2002 to nearly euro32 billion (US$40.8 billion). In the last month, Iberdrola's shares have jumped more than 20 percent as the market expects it to play a leading role in the consolidation of the Spanish energy market.
Spanish construction giant ACS said last month that it had spent more than euro2.1 billion (US$2.68 billion) to buy a 6.31 percent stake in Iberdrola SA. ACS said it had "made no decision to pursue a merger" between Iberdrola and rival electricity company Union Fenosa, of which it is a controlling shareholder, with a 35.2 percent stake, and would make further decisions based on market conditions.
The transaction came as several bidders, including German energy company E.On AG, are intensifying efforts to take control of Spain's largest power utility, Endesa SA.
Iberdrola, already the world's biggest wind-power generator, also announced a contract Tuesday with Spanish wind-turbine maker and wind-farm operator Gamesa Corporacion Tecnologica SA of about euro3 billion (US$3.8 billion).
That including a euro2.3 billion (US$2.9 billion) contract for wind-power turbines and between euro700 million (US$892 million) and euro1.1 billion (US$1.4 billion) in U.S. wind farms.
___
On the Net:
http://www.iberdrola.com


Updated : 2021-04-18 01:10 GMT+08:00