Iberdrola, Europe’s largest electricity company, reported a net profit of 2,760 million euros in the first three months of 2024, nearly double the 1,485 million euros recorded in the same period of the previous year. The significant increase in profits includes two significant extraordinary items: the sale of its combined cycle (gas) plants in Mexico, which contributed a capital gain of 1,165 million euros to its income statement. Excluding this operation, the jump in net profit would have been 27%.
The company anticipates a net profit exceeding 5,000 million euros by the end of the year, a new historical high. This growth in profit is attributed to the strong operating performance, contributions from investments, and the impact of new regulatory frameworks in the network business. The president of Iberdrola, Ignacio Sánchez Galán, stated that the positive evolution of their businesses in the first quarter, along with ongoing investments, supports an improvement in forecasts for the entire year 2024.
In terms of operational performance, Iberdrola’s gross operating result (ebitda) – excluding the Mexico operation – showed profits of 4,140 million euros in the first quarter of the year. Growth was driven by improved electrical networks in the United States, the United Kingdom, and Brazil, as well as increased renewable generation, particularly through hydroelectric power. Despite a decline in electricity prices during the quarter, the company’s ebitda in Spain grew by almost 3% compared to the same period in 2023.
The recent sale of its fossil business in Mexico allowed Iberdrola to reduce its debt for the first time in several quarters, with net financial debt decreasing from just over 47,800 million to 45,000 million euros by March 31, 2024. Investments by the company increased by 36% in the first quarter, setting a record of almost 2.4 billion euros, with significant allocations to networks and renewables.
According to Sánchez Galán, electrification is an unstoppable trend, with significant growth expected starting in 2030 across various sectors. Despite a recent decline in its stock value, Iberdrola remains focused on long-term investments and sustainability.