Weak winds push down Scottish Power profits

Weak winds in the first six months of the year have pushed down profits at Scottish Power.

EBITDA for the period totalled £727 million. The result marked a more than 9 per cent drop on the figure for the same period last year – around £793 million.

The decrease was mainly driven by low wind output from its renewables division, which dropped by 26 per cent year-on-year due to the mild weather. As a result, EBITDA fell by more than a third from £177.7 million to £116.6 million.

Scottish Power Energy Networks also saw its EBITDA fall by 2 per cent from £412.8 million to £404.5 million. The company attributed the fall to the “phasing of investments” as part of the RIIO-ED1 distribution investment programme, which began in April 2015.

EBITDA from the generation and retail division rose by one per cent from £203 million to £205.9 million. A fall in retail earnings due to “milder weather conditions” and an increase in the price of Renewable Energy Certificates was more than offset by higher gas-fired output and lower energy costs.

Scottish Power’s parent company Iberdrola saw its EBITDA fall by 1.4 per cent during the first half of the year to €3.892 billion. Net profits fell by 3.3 per cent to €3.456 billion.

“Earnings for the year will not be affected by factors such as the result of the EU referendum in the United Kingdom. In terms of Brexit, Iberdrola’s significant geographical – and currency – diversification will offset any possible impacts”, the company said.