Spanish energy giant Iberdrola posted a €2,029m net profit for the initial nine months of 2009, an 18% decline on 2008.

Weak demand, falling raw material prices, lower extraordinary gains, seasonal UK and US demand and Sterling depreciation against the euro contributed to the decline, the company said in a statement.

The company said its results were affected by the falls in demand across the Spanish energy sector which reported a 20% drop in raw materials prices, a 5% decline in demand and decreased wind and hydroelectric production.

Total production remained steady at 104,514 million kilowatt hours (kWh), a 1.8% drop that was less than the 5% decline in demand. Distributed energy experienced a 16% hike to 150,650 million kWh, of which over 50% was outside of Spain.

Iberdrola posted a 38.3% drop in market prices and 5% decline in demand due to adverse operating conditions, which represented an improvement over earlier quarters, the company said.

Iberdrola said it has continued to concentrate on expansion and diversification of its generation assets worldwide, reducing CO2 emissions and flexible costs and increasing installed capacity to 44,242MW, a 4.8% hike compared to the same period in 2008.

The company’s output in the first nine months declined 6.4% at 41,500 million kWh, a smaller decrease compared to the 12.8% recorded by the whole energy sector. Installed capacity was 0.9% more at 26,552MW.