Spanish utility giant Iberdrola SA (IBE.MC) said Wednesday its
profit fell about 13% in the first half of this year, weighed down
by weak electricity demand overall and cuts in subsidies for
renewable energy production in the company's home market.
Iberdrola said net profit in the first six months of 2014
declined to EUR1.5 billion euros ($2 billion) from EUR1.73 billion
in the same period of 2013.
Revenue fell almost 5% to EUR15.2 billion, dragged down by weak
electricity demand in Europe.
Although Europe's economy emerged last year from its lengthiest
downturn, the recovery has been slow and electricity demand has
remained tepid.
The Spanish government's efforts to control rising energy costs
has also weighed on the industry. In the past two years it has
slashed subsidies for renewable energy, raised taxes on electricity
production and cut compensation for transporting and distributing
electricity.
Write to Ilan Brat at ilan.brat@wsj.com
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