Iberdrola SA: Regulatory Changes Hurting Its Earnings; Silicon Up 7.1%

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The costs of regulatory changes are hurting another Spanish utility…

Iberdrola SA said on Wednesday that “the costs of regulatory changes were hurting its earnings and straining its dividend payouts, making the Spanish utility the latest European energy firm to fall victim of tough market conditions,” reports Reuters.

“Like other Spanish utilities such as Endesa, Iberdrola has been hit by government measures to solve a 26 billion euro ($35.8 billion) shortfall in Spain’s power system stemming from the difference between state-regulated costs and utilities’ revenues.”

“The company, a world leader in wind turbines, said cuts to renewables subsidies and a tax on generation in Spain, plus costs related to a regulator-mandated energy efficiency scheme in Britain and price cuts in Brazil had wiped 1.01 billion euros from its core profit in the first nine months of the year.”

On the weekly Renewables MMI®, silicon rose 7.1 percent to finish as the week’s biggest mover. The price of Chinese cobalt cathodes rose 4.9 percent after falling 0.5 percent during the previous week. The price of Chinese steel plate rose 1.3 percent after falling 1.3 percent during the previous week. The week finished with no movement for neodymium.

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Following a 2.8 percent increase in the week prior, the price of Japanese steel plate fell 2.7 percent last week. Korean steel plate remained essentially flat from the previous week. The price of Chinese steel plate rose 1.3 percent after falling 1.3 percent during the previous week. US steel plate prices were off slightly, down from $740.00 a week ago.

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US grain-oriented electrical steel (GOES) saw little change in its price on Tuesday.

The Renewables MMI® collects and weights 8 metal price points used extensively within the renewable energy industry to provide a unique view into renewable energy metal price trends. For more information on the Renewables MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.