Iberdrola, a major player in the renewable energies sector, reports a significant 64% increase in net income for the first half of 2024.
This performance is largely due to the strategic disposal of several assets and a significant increase in electricity production, particularly from hydroelectric sources.
Strategic asset disposals
The sale of 13 power plants in Mexico to the Mexican government is a key element in this increase in earnings.
The transaction, valued at 6.2 billion euros, was finalized at the end of February after lengthy negotiations with the Mexican government.
The sale made an extraordinary contribution of 1.72 billion euros to Iberdrola’s first-half net income.
Furthermore, despite a sharp fall in sales to 22.64 billion euros from 26.26 billion the previous year, due to lower electricity prices in its main markets, Iberdrola exceeded analysts’ expectations.
Second-quarter profit came to 1.37 billion euros, beating the 1.22 billion euros forecast by Factset analysts.
Operational Performance
Iberdrola’s operating performance also plays a key role in its financial results.
Hydroelectric production in Spain increased significantly, by 49%, helping to improve the company’s overall performance.
In addition, Iberdrola has expanded its installed renewable energy capacity, adding almost 3.1 gigawatts (GW) of new installations over the past 12 months, bringing total capacity to over 43.4 GW by the end of the first half of 2024.
This expansion is in line with Iberdrola’s investment strategy.
At the end of March, the company announced an ambitious investment plan of almost 41 billion euros between 2024 and 2026, targeting mainly the United States (35%), the United Kingdom (24%) and the Iberian Peninsula (15%).
Future prospects and strategic investments
Iberdrola plans to continue its growth trajectory by investing heavily in renewable energy projects.
This investment strategy underlines the company’s commitment to expanding its presence in key international markets, thereby strengthening its production capabilities.
The increased focus on renewable energies positions Iberdrola not only as a leader in the sector, but also as a key player in the global energy transition.
This strategic orientation should generate long-term benefits, consolidating the company’s market position and further boosting its profitability.
With a record profit of 4.8 billion euros last year, Iberdrola has set itself a high benchmark.
However, thanks to its ongoing strategic investments and operational efficiency, the company is well placed to meet or even exceed these figures in the years ahead.
Iberdrola’s impressive first-half performance reflects its strategic asset management and operational efficiency.
Major asset sales and increased production capacity played a crucial role in the company’s earnings growth, securing its position as a leader in the renewable energies sector.
