Energy giant Iberdola says Spain reforms hit profits
Iberdrola, the Spanish energy group with key British and US operations, said Wednesday 2014 profits tumbled nearly 10 percent as fiscal reforms imposed amid economic crisis in Spain hit home.
The group's net profits fell by 9.5 percent compared to 2013 to 2.33 billion euros ($2.65 billion), it said in a statement.
"This decline reflected a lower level of non-recurring income as well the regulatory measures affecting in particular the business in Spain," it said.
Those measures were part of urgent reforms imposed by Spain's conservative government in 2012 as it fought to stabilise public finances at the height of economic crisis.
Like other companies specialising in renewable energy, Iberdrola benefitted from public subsidies in the 2000s, but got a shock when the government reduced this support and imposed new taxes.
Iberdrola said business in the United States, Britain, Brazil and Mexico partially helped compensate for the decline in Spain, however.
Its key raw measure of earnings before interest, tax, depreciation and amortisation increased by 3.1 percent to 6.97 million euros.
Iberdrola has major renewable energy, electricity and gas operations in 24 US states.
It said Wednesday its revenues were boosted by its operations in the northeastern state of Maine, and from a new electricity line there linking the United States and Canada.
In October it also launched a wind farm off the coast of northwestern England through its subsidiary Scottish Power Renewables.
© 2015 AFP