Iberdrola registers record profits

 In Energy, News

The Spanish electrical energy producer Iberdrola which has interests in the Portuguese market saw profits soar 7.5% in 2018.

Its net profits were €3Bn, up 7.5% on 2017, reflecting an improvement of its business and sale of assets in the UK market.

“The group’s results reflect investments of around €20Bn over the past four years, its international expansion, an improvement of its operations in Spain and good performance across the board,” states the Spanish company that sells energy in Portugal and is currently building the Alto Tâmega Hydroelectric Complex, a project evaluated at around 1.5Bn.

Last year Iberdrola and Endesa began studying the possibility of entering the Portuguese energy distribution market controlled by EDP for decades.

According to sector sources, the goal is the low voltage electricity market. Both Spanish entities are motivated buy the EDP concession contracts which are about to end (2021-2022) with the last contract terminating in 2026.

Iberdrola and Endesa are both preparing ti bid for these contracts when they go to public tender, some of which will go in 2019.

However, EDP has made substantial investments in the network over the years that it controlled the distribution network and has the right to be compensated by the company or companies that eventually control the infrastructure.