Iberdrola adjusted first-quarter profit grows 11% due to network investments
First Quarter Financial Performance 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 its adjusted net profit to 1.87 billion euros in the first quarter due to network investments, particularly in the U.S. and Britain.
Updated Guidance and Growth Drivers
The 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 invested 14.5 billion euros ($16.97 billion), 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.
Risk Management and Financial Resilience
Exposure to Middle East Conflict
Iberdrola said it does not expect financial impacts from the conflict in the Middle East as it has no fossil fuel dependency or exposure to commodities and 93% of its equipment purchases are secured up to 2028 and not affected by the blockage of the Strait of Hormuz.
Foreign Exchange Impacts
Iberdrola said that discounting the foreign exchange impact of 99 million euros from the depreciation of the dollar, the pound and the Brazilian real, adjusted net profit would have grown 17% in the quarter.
Reported Net Income and EBITDA
Net Income Performance
Reported net income that discounts capital gains from asset rotation fell 15% to 1.71 billion euros, largely in line with the median forecast by analysts polled by LSEG of 1.72 billion euros.
EBITDA Results
The company said its earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled 4.07 billion euros, down from 4.5 billion a year earlier and slightly above the median forecast of 4 billion, adding that in forex-adjusted terms, EBITDA would have grown 6%.
Exchange Rate Reference
($1 = 0.8547 euros)
Reporting Credits
(Reporting by Madrid Newsroom, writing by Andrei Khalip and Nina Chestney; Editing by Thomas Derpinghaus)
