Energy profits

Iberdrola recorded a net profit of €793m (£711.6m) in the first quarter of 2009, a fall of 34.2 per cent over the same period last year, which it partly attributed to declining business in Spain affected by falling demand and lower prices.

In Spain, Iberdrola was affected by a 7.5 per cent decline in demand and a 34 per cent fall in wholesale prices.

The diversification of its business, however, enabled the company to offset the lower income from Spain and achieve a nine per cent rise in earnings before interest, taxes, depreciation and amortization (EBITDA) to €1,952m.

The company said that the contribution of ScottishPower, Energy East and Iberdrola Renovables was the key to sustaining its business in the negative economic climate.

Despite the situation in Spain, the strength of its international businesses allowed it to increase overall production by four per cent in the first quarter to 36,845kWh, of which more than half was generated outside Spain.