Iberdrola clocks net profit at USD 1.49bn in Q1 2023, up 40.4% y/y

Spanish utility Iberdrola SA (BME:IBE) said on Wednesday its first-quarter net profit grew by 40.4% year-on-year to EUR 1.49 billion (USD 1.65bn), attributing the results to a solid performance in Spain and the UK.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) in both of those markets increased significantly, especially in the group’s Energy Production and Customers segment. Total EBITDA for the January-March quarter rose by 37.7% on the year to EUR 4.07 billion owing to geographic diversification, increased asset base in the networks business in all countries and the normalisation of wholesale and retail markets, Iberdrola said.

Revenues totalled EUR 15.5 billion, up by 27.2%.

The Energy Production and Customers business, which contains the results for Iberdrola’s renewables, reported an EBITDA surge of 77% to EUR 2.41 billion. Iberdrola highlighted increased output from its wind, solar, hydro and nuclear power plants compared the same quarter a year prior, resulting in lower spot market energy purchases to meet customer demand.

Iberdrola’s renewables business will this year see first power from two out of five offshore wind projects it currently has under construction. Turbines at Saint Brieuc off France are due to start spinning in May and reach commercial operation by the end of the year. Vineyard Wind off the US coast is expected to produce first power before the end of 2023, the utility announced.

Iberdrola’s tax for the period came at EUR 591.9 million, up by 90% year-on-year. The amount includes a 1.2% tax in Spain on domestic unregulated activities, such as power production and retail at unregulated prices, and a tax on capital gains stemming from the restructuring of the offshore wind joint venture with Copenhagen Infrastructure Partners in the US.

Looking ahead, Iberdrola expects to post an annual net profit growth in mid to high single digits. It said that it expects a strong operating performance over the course of 2023 based on investments unleashed from the second quarter onward, better business conditions and improved solidity and financial strength.

(EUR 1.0 = USD 1.104)

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