CIG: Spain’s Iberdrola Renovables posts stronger than expected first quarter results.

Spanish renewable energy giant Iberdrola reiterates optimistic targets for capacity and profit after posting better-than-expected first quarter results.
By: CIG LLC
 
April 27, 2010 - PRLog -- After posting net profit of $207.8 million (€156 million) for the months January through March, an improvement of 37% from the first three months of 2009 and significantly higher than the $187 million predicted by analysts, CIG believes that the chairman of Iberdrola Renovables, Ignacio Galan on a recent conference call after the release of the results tried to down play the firms good results, warning of cuts in the Spanish renewable energy subsidies after growth  in the solar energy sector outstripped government targets by seven times.

In recent weeks the share price of Spanish renewables firms have experienced major drops over speculation that the country may introduce severe subsidy cuts for future plants and possibly even for already established ones.

"Wind power in Spain gets about €77 ($101) per megawatt hour, much lower than in the rest of Europe ... while photovoltaic (solar) power gets about €466 ($613) per megawatt hour, much higher than in our neighbours," CIG believes the Ignacio Galan was recently quoted as saying, adding that wind power was not a financial product but rather a solution to a country’s energy problems.

The company also reiterated its forecast for a net profit growth of 20% for this year, CIG was informed, as well as its goal of having 12,500 MW of renewable energy installed by the end of 2010. The firm also repeated its forecast that it would install another 1,000 during both 2011 and 2012.

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CIG is an exclusive, members only, offshore, private equity, investment firm that provides consulting services to like minded members of the private equity and alternative investment community.
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