Spanish firm Iberdrola (BME:IBE), the owner of ScottishPower, posted a 50% increase in net profits for the first nine months of the year.
The result reflects Iberdrola’s increased investment in the UK, up 75% from the year before, and the United States, with the company focusing on expanding power grid infrastructure.
As part of that strategy, Europe’s largest utility this week finalised its acquisition of an 88% stake in UK firm Electricity North West for £2.1 billion.
Iberdrola has also flagged a more selective approach to renewable energy projects as it focuses more heavily on offshore wind projects.
In the UK this year, Iberdrola secured two contracts in the sixth allocation round for its East Anglia 2 and East Anglia 3 projects.
The Bilbao-based firm recorded net profit for the period of €5.47bn (£4.55bn), compared to €3.64bn in the same period last year.
Commenting on the results, Iberdrola executive chairman Ignacio Sanchez Galan said: “Our continued major investment drive is delivering new renewables projects and regulated assets, and the contribution to results of our increased offshore wind capacity underlines the reason why investment in this technology was a key pillar in our strategic plan.”
Earnings before interest, taxes, depreciation and amortisation increased by 23%, reaching €13.27bn (£11bn).
Iberdrola ramps up UK investment
The positive result for Iberdrola comes as it plans to significantly increase its investment in the UK.
Earlier this month, Iberdrola announced plans to invest up to £12 billion in its UK business Scottish Power over the next four years.
Investments will include a new “subsea superhighway”, Eastern Green Link 1, between Torness in Scotland and Hawthorn Pit in England.
The company also plans to continue to invest in new onshore wind, solar PV and battery projects.
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