Spanish renewable energy giant Iberdrola posted a 21% rise in first-half net profit, thanks to solid operating results, particularly in Spain and the UK, where it has stepped up investment.
Financial success in the first half: 2.52 billion euros in profits for Iberdrola
The energy group, which in the space of a few years has become one of the world’s leading players in the sector, made a total of 2.52 billion euros in profits between January and June, compared with 2.07 billion in the first six months of 2022, according to its results published on Thursday.
In the second quarter alone, earnings reached 1.04 billion euros. This figure is down on the first-quarter figure (1.48 billion), but exceeds the expectations of analysts polled by Factset, who were expecting an average of 943 million euros.
“These results confirm our ability to execute our plans faster than expected, even in the current difficult macroeconomic environment,” emphasized Iberdrola Chairman Ignacio Sánchez Galán in a press release.
Growth and international challenges: Iberdrola reports solid growth in Europe and a decline in the United States
The group, which generated gross operating income of 7.56 billion euros over six months, 17% more than in the first half of 2022, expects net profit growth of almost 10% in 2023, Galan says.
The Spanish renewable energy giant highlights the “solid development” of its business in “the UK”, where it manages a large network of wind farms, but also in “the European Union”, particularly in Spain, where it has increased its investments.
On the other hand, the Group says it suffered in the United States, where it intends to expand its presence, and where its gross operating income fell by 47%, due to a new regulatory framework.
Green energy on the rise: Iberdrola spreads its global wings with record investments and a new strategy in the United States
Spain’s energy flagship, which posted record profits of 4.34 billion euros last year, says it has invested 10.54 billion euros over the past 12 months (+8% year-on-year), the vast majority to expand its renewable energy production capacity.
These figures come as Iberdrola reached an agreement in early April to sell 13 power plants it owned in the country – 60% of its Mexican assets – to the Mexican state for $6 billion.
Following this agreement, which put an end to a long dispute between Iberdrola and the Mexican government, Iberdrola announced that it would use the money to accelerate its deployment in the United States, where it plans massive investments.
