ScottishPower, a subsidiary of Basque group Iberdrola, reported a big drop in earnings at its generation and supply business in 2017 — but a surge in earnings at its ScottishPower Renewables business.
ScottishPower said EBITDA (earnings before interest, taxes, depreciation, and amortization) at its SP Energy Networks businesses fell 2.8% to £776.6 million in 2017, EBITDA at its Generation and Supply business fell 49.3% to £121.9 million, and EBITDA at its ScottishPower Renewables surged 44.6% to £316.1 million.
Keith Anderson, ScottishPower chief corporate officer, said: “Completing our £650 million investment in UK onshore wind in 2017 led to a good performance from the Renewables business, delivering a significant increase in green electricity production.
“We now have more than 2 gigawatts of wind power capacity, and the £2.5 billion East Anglia ONE offshore windfarm is well in to construction.
“Over £600 million was also invested in to our Networks business last year, as we continue to deliver smart and efficient grids capable of supporting the UK’s future energy needs.
“As anticipated, Generation and Supply continued to face challenges, predominantly in light of increasing input costs, reduced demand. challenging market conditions and political uncertainty.”
Ignacio Galan, Iberdrola and ScottishPower Chairman, said: “Despite recent political and regulatory uncertainty, the UK remains a core investment destination for our company.
“ScottishPower will deliver around €6.1 billion of investment in green and smart infrastructure over the next 5 years.
“We will focus on increasing our renewable energy capacity, enhanced grid networks and smart technology for customers.
“The UK, like the rest of the world, is at a tipping point.
“After 25 years of encouraging people to use less electricity, now we know that the best way to tackle climate change is to use more over the next 25 years.
“But as we close our final coal power stations and build more renewables this electricity will be cleaner and more affordable than ever.
“More and smarter power will enable us to decarbonise faster as we electrify the economy where it matters most now – in transport and in heating.
“Underpinned by stable and sensible Government policies, companies like Iberdrola will invest to deliver an energy system capable of meeting these challenges.
“The plan we are presenting today is fully consistent with our strategy over recent years, while seizing the opportunities provided by the new digital environment.
“In essence, it is a plan that maintains focus on growth in specific opportunities in regulated and long-term contracted businesses which offer earnings visibility, while maintaining a geographically balanced portfolio and exploring growth beyond those frontiers.”