Spain’s Acciona, recently posted an 8% decrease in their 9-month overall core profit due to new energy regulations being implemented that hampered the growth of the company’s infrastructure and water division. Overall profits at the company’s wind turbine plant, Gamesa, meanwhile increased after recent restructuring efforts.
Wind farms of Acciona have been hit particularly hard by new measures being implemented by the government of Spain in mending a gap between costs and regulated overall energy prices that include power generation taxes and also subsidy cuts, a gap amounting to multi-billion-euros.
Gamesa did overcome weakness results after a recent restructuring plan that helped overall net profit to double, reaching 64 M euros equivalent to $79M, returning the company back on track in meeting targets for this year.
The company earlier sold a third stake of its stake in their energy business abroad to KKR, a private equity group. This is to help Acciona’s finances and two other companies that are planning to declare a “yield co” of holding assets for next year.
Acciona’s 9-month overall earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to a total of 771M euros, which is equivalent to $957M, while the company’s overall net profit almost doubled to a total of 149M euros, because of 1 time gains coming from sales of assets.