Spanish electricity company Iberdrola SA said Wednesday its second-quarter net profit fell 5.5% as the consolidation of its Energy East purchase wasn't enough to compensate for falling electricity prices and output.

MADRID -- Spanish electricity company Iberdrola SA said Wednesday its second-quarter net profit fell 5.5% as the consolidation of its Energy East purchase wasn't enough to compensate for falling electricity prices and output.

Net profit fell to €713.5 million ($1.01 billion) from €755 million a year earlier as lower electricity prices in Spain and lower output volumes in Spain, Latin America and Britain prompted a 4.4% drop in revenue to €5.47 billion from €5.72 billion. The consolidation of U.S. energy company Energy East into results in October 2008 as well as capital gains from the June disposal of a 10% stake in wind-turbine maker Gamesa Corporacion Tecnologica SA failed to offset this decline.

Earnings before interest, taxes, depreciation and amortization, or Ebitda, for the second quarter were down 0.7% at €1.48 billion. For the first half, Iberdrola net profit dropped 23% to €1.51 billion.

Iberdrola shares rose 0.2% in morning trading, but are down 28% over the past 12 months amid a fall in electricity demand due to the economic downturn.

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