Iberdrola adjusted first-quarter profit grows 11% due to network investments
First Quarter Results and Strategic Investments
Profit Growth Driven by Network Investments
MADRID, April 29 (Reuters) - Iberdrola, Europe's largest utility, on Wednesday posted an 11% rise in adjusted net profit to 1.87 billion euros ($2.19 billion) in the first quarter due to network investments, particularly in the U.S. and Britain.
Upgraded Guidance and Future Growth Opportunities
The Spanish company raised its guidance for this year's adjusted profit growth to more than 8% from around 6% and said there could be further growth due to electrification and artificial intelligence, with more than 300 projects underway.
Investment Allocation and Capacity Expansion
Over the past 12 months, the company has invested 14.5 billion euros, with two-thirds allocated to networks, it said. It has added 3,300 megawatts of new generation capacity in the past 12 months, with almost 60% of that in onshore and offshore wind.
Executive Commentary on Energy Security
“The current crisis (in the Middle East) is showing once again the urgent need to improve energy security, strategic autonomy and competitiveness through electrification and this will drive additional investment opportunities as we contribute to build more resilient and sustainable energy systems," said Ignacio Galan, Iberdrola's executive chairman.
Financial Stability and Risk Management
Limited Exposure to Geopolitical Risks
Iberdrola said it did not expect financial impacts from the Iran war as it had no fossil fuel dependency or exposure to commodities and 93% of its equipment purchases were secured up to 2028 and not affected by the blockage of the Strait of Hormuz.
Debt Position and Asset Sales
The company's net debt stood at 50.3 billion euros after it completed the sale of its assets in Mexico to Spanish water and renewable energy company Cox.
Capital Gains from Mexico Transaction
Galan told a results webinar he expected "several hundred million euros" in capital gains from the transaction.
Shareholder Returns and Dividend Proposal
Iberdrola will propose a supplementary dividend of 0.427 euros gross per share at the next general shareholders meeting on May 29, which together with the current 0.253 euros, will total 0.680 euros gross per share, a 6.3% increase from last year.
($1 = 0.8549 euros)
(Reporting by Madrid newsroom; Writing by Andrei Khalip and Nina Chestney; Editing by Thomas Derpinghaus and Kate Mayberry)
