Iberdrola, Europe’s largest electricity company, has reported a net profit of 2,760 million euros in the first quarter of 2024, a whopping 88% increase from the same period last year. This impressive growth can be attributed to the sale of its combined cycle (gas) plants in Mexico, which generated a capital gain of 1,165 million euros for the company.
The company forecasts a net profit of more than 5,000 million by year-end. This new historical high is thanks to strong operating performance, smart investments and new regulatory frameworks in the network business. President Ignacio Sánchez Galán expressed his satisfaction with the results seen in the first quarter and highlighted that this improvement has led to an increase in forecasts for the entire year.
Iberdrola’s gross operating result (ebitda), excluding the Mexico operation, showed profits of 4,140 million euros in the first quarter. This growth stemmed from improvements in electrical networks as well as significant contributions from renewable generation across multiple geographic regions. Despite challenges like collapsing electricity prices, Iberdrola demonstrated resilience and operational excellence.
The sale of its fossil business in Mexico helped Iberdrola reduce its debt for the first time in several quarters, from over 47,800 million to 45,000 million as of March 31, 2024. Investments grew by an astonishing 36% in the first quarter, reaching a record almost 2.4 billion euros. A significant portion of these investments were allocated to renewable energy projects. Iberdrola’s investment strategy is centered around electrification and renewable energy technologies.
Sánchez Galán emphasized how electrification is an unstoppable trend moving forward and highlighted that Iberdrola continues to invest heavily in renewable energy infrastructure to support this growing sector. Despite market fluctuations and challenges ahead, Iberdrola remains optimistic about the future of sustainable energy production.
In summary, Iberdrola’s impressive financial results are driven by strategic sales and smart investments that align with its focus on electrification and renewable energy technologies. The company’s commitment to sustainable energy production remains strong despite market fluctuations and challenges ahead