USA (Washington Insider Magazine) — In a recent announcement, Iberdrola revealed its impressive financial performance for the first quarter of the year, achieving a net profit of 2,760 million euros. This figure represents a remarkable increase of 85.85% compared to the same period in 2023, when the company recorded a profit of 1.485 billion euros. This significant growth highlights the robustness of Iberdrola’s business model and the positive impact of the strategic investments outlined in the 2024-26 plan.
Ignacio Galán, President of Iberdrola, emphasized the company’s confidence in its prospects. Galán stated that the profit forecast for the 2024 year will exceed 5,000 billion euros, a milestone that would set a new record for the company. Galán attributed this optimistic outlook to the strong performance in the first quarter of 2024 and the expected growth from ongoing investments.
Financial Highlights
The gross operating result (EBITDA) for the first quarter of 2024 reached 5,857 million euros, showcasing a significant rise in recurring terms. Excluding operations in Mexico, profits reached 4,140 million euros, marking a 10% growth. This growth was mainly driven by expansions in the electricity grid business, facilitated by new tariff frameworks in pioneer markets such as the United States, the United Kingdom, and Brazil, along with enhanced contributions from renewable energy generatioN
Despite the impressive profits, sales saw a slight decline from 15,460 million euros in the first quarter of 2023 to 12,678 million euros in the same period this year, indicating a reduction of 18 percentage points.
Strategic Investments and Global Allocation
Iberdrola’s investment strategy demonstrates the company’s dedication to sustainability. In the first quarter of 2024, the company invested more than 2,380 million euros, marking a fundamental increase of 36% compared to the same period in 2023. A significant portion of these investments, approximately 40%, was directed towards offshore wind projects, reflecting Iberdrola’s dedication to renewable energy sources. Notably, over 40% of the total investment was allocated to transport networks, emphasizing the company’s focus on infrastructure development.
Geographically, Iberdrola allocated the majority of its investments to renewable energy projects, with a significant portion directed towards the United States. Other key markets included the United Kingdom, Spain, and Latin America, highlighting the company’s global presence and commitment to sustainable development.
Future Growth Prospects
Galán reiterated Iberdrola’s commitment to driving electrification, predicting a significant surge in demand starting from 2030, fueled by various sectors such as transportation, refrigeration, heating, industry, and data centers. This anticipated growth underscores the pivotal role of renewable energy in meeting future energy demands.
According to Elcronista, looking ahead to 2024, Iberdrola expects to continue growing, with investments projected to reach approximately 12,000 million euros. The company remains unwavering in its commitment to shareholder remuneration, proposing a complementary dividend of 0.348 euros per share for approval at the upcoming general meeting of shareholders.
Analysts expressed satisfaction with Iberdrola’s performance, with Bankinter highlighting figures above consensus expectations. The bank listed several positive factors, including growth in regulated assets, improved marketing margins, and increased capacity in renewables. However, there are some concerns regarding lower results in gas management and the absence of non-recurring positive factors from the previous year of 2023.
Similarly, Renta 4 acknowledged the extraordinary results driven by capital gains from asset sales in Mexico. Despite these exceptional gains, the company’s figures remained above consensus expectations. Renta 4 maintained a positive long-term outlook for Iberdrola, underscoring its significant operational performance and favorable market conditions.
MarketScreener pointed to analysts’ concerns regarding the company’s growth vision, highlighting it as a potential weakness. Despite these reservations, Iberdrola’s strengths and strategic investments position it well for future success in the evolving energy landscape.
In conclusion, Iberdrola’s robust performance in the first quarter of 2024 indicates its strength and strategic foresight, setting a promising trajectory for prolonged growth and leadership in the renewable energy sector.
