In the first quarter of 2024, Iberdrola, Europe’s largest electricity company, reported a net profit of 2,760 million euros. This was nearly double the 1,485 million recorded in the same period the year before. The primary reason for this increase was the sale of its combined cycle (gas) plants in Mexico, which brought a capital gain of 1,165 million to its income statement.
Without this operation, the net profit would have still seen a substantial 27% jump. Iberdrola forecasts a net profit of more than 5,000 million by year-end. This new historical high is attributed to strong operating performance, investments, and new regulatory frameworks in the network business. President Ignacio Sánchez Galán noted the good performance in the first quarter and indicated an improvement 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 enhancements in electrical networks as well as notable contributions from renewable generation in various geographic regions. Despite challenges like collapsing electricity prices, the company demonstrated growth and resilience in its operational performance.
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 31st. Investments grew by 36% in the first quarter to almost 2.4 billion euros and are focused on electrification and renewable energy technologies. Sánchez Galán highlighted the unstoppable trend of electrification moving forward and noted that Iberdrola continues to invest heavily in renewable energy infrastructure to support this growing sector.
In summary, Iberdrola’s financial performance is impressive with a net profit increase of nearly double compared to last year due primarily to successful operations and investments made by Sánchez Galán. Additionally, Iberdrola’s focus on reducing debt through sales and investments has resulted in significant improvements for their financial future.
As market fluctuations continue and challenges arise with traditional energy sources like fossil fuels, it becomes increasingly clear that companies like Iberdrola must continue their investment strategies towards sustainable energy production and electrification if they hope to stay competitive long term.
In conclusion