Parent praises Scottish Power's strong showing

Published on Thursday 23 October 2008 21:53

IBERDROLA yesterday praised the performance of is ScottishPower subsidiary as it reported a net profit of 2.48 billion (£1.97bn) in the first three quarters of the year, but warned it may cut back investment.

The Bilbao-based company said the Glasgow-based business contributed 1.37bn to the group's earnings before interest, tax, depreciation and amortisation (EBITDA), in the nine months to 30 September, 28 per cent of the total.

Iberdrola said ScottishPower was one its "principle growth vectors". A company statement said: "Efficiency improved following integration in the group, accelerating synergies and cost-savings."

Group EBITDA rose 29 per cent to 4.92bn, beating analyst expectations.

However, the company warned that it may cancel up to 2bn in annual investment due to worsening economic conditions. Sources said the UK was unlikely to be affected by the cuts. Iberdrola plans to spend 3bn in the UK between 2008-2010, 2.1bn of which is regulated by Ofgem, with the remainder tied to maintenance and renewable energy.