Iberdrola's net profit reaches 2,760 million euros in the first quarter of 2024-26
- Investment aligned with the Strategic Plan 2024-2026
- Sound balance sheet and financial strength
- Improved prospects for 2024
- Commitment to shareholders and AGM on 17 May
Iberdrola presented its results for the first quarter, with record investments of 2,382 million euros, after a 36% growth compared to the same period last year. The company thus reaffirms its commitment to the electrification of the economy, the basis of the Strategic Plan presented on 21 March.
The company reported a net profit of Euro 2,760 million, driven by new investments, the increase in renewable energy production on the Iberian Peninsula and the sale of assets in Mexico.
The results for the period include two non-recurring items corresponding to 2024 and 2023:
- In 2024, the sale of the combined cycle business in Mexico - closed in this first quarter - contributes 5,437 million euros in cash, with an impact of 1,165 million euros in net profit.
- In 2023, the recovery of the deficit in the UK trading business, which had a positive impact of EUR 238 million on net income.
Excluding these two effects, recurring net profit increased 28%.
EBITDA amounted to 5,857 million euros. Excluding the two non-recurring effects mentioned above, EBITDA increased 10% due to the good performance of all geographic areas and businesses. Of particular note were:
- The impact of the new network frameworks in the UK, the US and Brazil.
- The positive performance of renewable generation in the Iberian Peninsula (10,600 GWh, +19%), which reached decade highs thanks to the new installed capacity and the increase in manageable renewable energies.
- The 16% increase in offshore wind production, thanks to the entry of new capacity.
Iberdrola's Chairman, Ignacio Galán, said: "These results show the strength of Iberdrola's model and the positive impact of the investments included in our 2024-26 Plan. The good performance of our businesses in the first quarter, together with the growth of investments already underway, also allow us to improve our forecasts for the full year 2024".
Investment aligned with the Strategic Plan 2024-2026
In line with the guidelines of its plan, the company has allocated 51% of total investment to the network business, reaching 1,213 million euros in the first quarter of 2024, an increase of 27% compared to the same period of the previous year. This growth was driven by an 85% increase in investments in transmission networks. As a result, the network asset base reached 43 billion euros, 9% higher than in the first quarter of 2023.
Investments in renewables accounted for 42% of the total and amounted to almost 1 billion euros. Of this amount, 40% has been allocated to offshore wind power. The group ended the first quarter with a renewable installed capacity of 42,300 MW worldwide. Iberdrola generates 100% emission-free energy in the United Kingdom, Brazil, France, Italy, Germany, Poland, Portugal, Greece, Romania and Bulgaria. Emission-free production in the first quarter accounted for 92% of the total in Spain.
Of total investments, 35% went to the United States, 20% to the United Kingdom, 20% to Spain, 15% to Latin America and the remaining 10% to Continental Europe and Australia.
Sound balance sheet and financial strength
Operating cash flow increased 14% on a recurring basis to 3,145 million euros in the first three months of the year. This, together with the collection of the divestment of some assets in Mexico, brings the FFO/net debt ratio to 25%.
In addition, the company has liquidity of 22,400 million euros, which would enable it to cover 26 months of financing needs without resorting to the market.
Improved prospects for 2024
In this context, Iberdrola's Chairman, Ignacio Galán, has improved the outlook for 2024, with net profit growth in high single digits (excluding any capital gains from asset rotation), thanks to strong operating performance, the contribution of investments -12,000 million euros for this year- and the contribution of the new regulatory frameworks in the network business in the United States, the United Kingdom and Brazil.
Three offshore wind projects will continue to enter service during the year: St. Brieuc (500 MW, France); Vineyard Wind 1 (800 MW, US) and Baltic Eagle (475 MW, Germany). In addition, the company will have more resource from manageable renewables.
Commitment to shareholders and AGM on 17 May
Iberdrola will present for approval at its General Shareholders' Meeting - to be held in Bilbao on 17 May - the payment of a final dividend of 0.348 euros per share in July, in addition to the 0.202 euros distributed in January. The total dividend charged to the 2023 fiscal year will increase by 10.8% with respect to the dividend paid for the 2022 results, to reach 0.55 euros per share. 0.005 per share will be added to this amount if the quorum for the AGM reaches 70%.