THE challenge facing new ScottishPower chief Keith Anderson was laid bare by half-year figures showing profits are 21.4% down on last year.
The Glasgow-based energy provider said six-month earnings amounted to €595 million (£525m), against €757 million (£669m) last year.
But this did little to hamper the growth of its Spanish parent. Iberdrola, the world’s fifth-largest energy company, posted a 6.6% increase in first-half net profit to €1.56 billion.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 4.4% to exceed €4bn for the first time in a six-month period.
ScottishPower was squeezed by wholesale price rises and falling demand due to Britain’s economic woes.
EBITDA at the part of ScottishPower that supplies households and businesses and oversees power generation plunged 53.6% from €494m to €182m.
Iberdrola said this was “due to tighter margins and lower sales of electricity and gas”.
ScottishPower said changes in sterling and the euro had little impact on the numbers.
The news presents a challenge to Mr Anderson, who on Wednesday was appointed chief corporate officer of ScottishPower, having run ScottishPower Renewables.
However, he will be helped by rising customer bills from August 1, when ScottishPower boosts its gas charges by 19% and imposes a 10% rise in electricity prices.
Mr Anderson marked his departure from the green power business by revealing that wind generation in the UK reached 987 gigawatt hours for the period, a 67.5% increase on last year. This was due in part to a 20% rise in capacity.
Meanwhile, Iberdrola has failed in a legal attempt to stop Spanish construction group ACS exercising the full voting rights of its 19% stake.
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