ScottishPower — a subsidiary of Basque energy giant Iberdrola — said on Thursday earnings rose 30% to £166 million at its ScottishPower Renewables business in the first quarter thanks to “a combination of increased wind volumes and favourable market conditions.”
ScottishPower’s energy networks division saw EBITDA (earnings before interest, tax, depreciation and amortization) rise 5% to £216.6 million in the quarter.
However, EBITDA plummeted 67% to £44 million at ScottishPower’s “liberalised” primarily due to “a very mild winter in comparison to Q1 2018 (which saw the ‘Beast from the East’) and the impact of the UK Government’s Price Cap.” The disposal of its generation business to Drax also had a small impact on results.
ScottishPower CEO Keith Anderson said: “As the UK’s only integrated energy company to produce 100% green electricity, we completed the essential journey to decarbonise power generation in January.
“The strong performance of renewables shows we are delivering what consumers want in access to reliable, clean, lower cost energy.
“Combined with sustained investment in our Networks business, as it completes vital upgrades essential to bringing on even more green power, we are firmly placed to drive forward the electrification of the UK’s economy where it matters most from the decarbonisation of transport and heating.”
The owner of ScottishPower has seen earnings rise 11.9% to 2.6 billion euros (£2.2 billion), on the back of heavy investment and higher tariffs. Spanish-based Iberdrola was buoyed by strong earnings growth in the Scottish energy provider’s renewables business.