Spanish energy giant Iberdrola posted a 40% increase in net profit in the first quarter, thanks to strong results in Spain, the United Kingdom and the United States, where the group wants to accelerate its expansion.
Iberdrola earned €1.48 billion in profits between January and March, compared to €1.06 billion in the first quarter of 2022. This figure is higher than the forecasts of analysts surveyed by Factset, who on average expected a profit of 1.31 billion. The Spanish group, which in a few years has become one of the world leaders in renewable energies, has also seen its turnover rise sharply (+27% in one year), to 15.46 billion euros, according to a press release published on Wednesday.
This dynamic is explained “mainly” by good results “In Spain and the United Kingdom”, where Iberdrola manages a large network of wind farms, but also in the United States, where the Spanish group has increased its production capacity. It should “continue throughout the year,” the statement said, which reported “improved” conditions “trade” in several countries, including new tariffs in the United States and Brazil.
These figures come as Iberdrola reached an agreement in early April to sell 13 power plants it owned in the country, or 60% of its Mexican assets, to the Mexican state for six billion dollars. After this agreement, which ended 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 over the next few years.
The first quarter results also come as Madrid introduced an exceptional tax on the profits of large energy companies in early January, which should enable the state to recover two billion euros per year in 2023 and 2024. This measure, intended to finance the support measures put in place in the face of soaring inflation, has been criticized by employers, including Ignacio Sanchez Galan, concerned about its impact on the investment capacity of the groups concerned.
The Spanish energy flagship, which last year posted a record profit of 4.34 billion euros, says it has invested 10.4 billion euros over the past year, the vast majority to develop its renewable energy production capacity.
