Spanish electricity company Iberdrola has posted a 12.5% increase in profits for the first half of the year despite experiencing severe difficulties in its home market.
Thanks to a combination of cost cutting and strong international results, Iberdrola increased profits in the first six months of the year by E16 million over last year. Revenues increased by 30% to E5.4 billion.
Iberdrola’s international operations drove the positive results with strong business in Mexico and Brazil producing a 23% revenues improvement. Meanwhile, the company was able to reduce the impact of the Spanish drought through its policy of diversifying into wind power, however, the restrictive Spanish industry held back income from domestic operations.
Despite its domestic position, Iberdrola’s results bettered expectations, prompting a small increase in the company’s share value. In addition, the company’s CEO Ignacio Sanchez Galán reaffirmed forecasts of double-digit profit growth for the full year.