Iberdrola buys US utility as profits rise

Iberdrola-owned Avangrid has agreed to acquire US utility PNM Resources as its parent company’s 2020 spending spree continues. 

The Spanish energy giant announced the deal alongside its results for the first nine months of the year, which showed an increase in net profit, adjusted Ebitda and investment in renewables.

PNM Resources buys output from 356MW of wind power capacity in New Mexico and Texas, and also owns 831MW of gas, 697MW of coal and 157MW of solar PV.

Its integration into Iberdrola subsidiary Avangrid will create one of the largest US utilities, with ten regulated electricity companies in six states.

Meanwhile, Iberdrola recorded a 4.7% increase in net profit to €2.68 billion and 3.2% rise in adjusted Ebitda to €7.56 billion in the first nine months of the year.

Its growth has been supported by the increase in its installed renewable capacity and the operational performance of its renewables, generation and supply businesses.

This came despite a €308 million hit to net Ebit and €203 million blow to net profit due to reduced demand and provisions for insolvencies during the coronavirus pandemic.

Iberdrola’s investments in renewables grew 52% to €3.57 billion in the first nine months of the year, and included acquisitions in the UK, France, Australia, Sweden, Japan and Brazil.