Spanish power utility Iberdrola SA (BME:IBE) recorded a net profit of EUR 1.05 billion (USD 1.11bn) in the first quarter of 2022, up 3.2% year-on-year, mainly thanks to its business in the international arena, the group said today.
Iberdrola’s US subsidiary Avangrid Inc (NYSE:AGR) grew net profit by 33% on the year, while in Brazil, its unit Neoenergia SA (BVMF:NEOE3) boosted net earnings by 20% in local currency. By contrast, the company’s domestic business, Iberdrola Spain, reduced the first-quarter net profit by 29% to EUR 337 million. The drop in profit in the home market came as a result of high energy prices which were not passed on to the customers that already made purchases at previously agreed prices, Iberdrola explained.
The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 4.9% to EUR 2.95 billion, again thanks to contributions from abroad. Total revenues went up by 20.4% to EUR 12.15 billion, the first-quarter results show.
Iberdrola’s business unit Electricity Production and Customers, which now groups results from renewables, all other generation and retail divisions, recorded a 6.8% drop in EBITDA to EUR 1.36 billion. These results suffered the impact of high energy prices, low renewables production, and an unscheduled shutdown of the Cofrentes nuclear power plant in Spain that has since been resolved, Iberdrola said.
During the reporting period, global net electricity production from all sources -- renewables, gas and nuclear -- fell by 5.3% year-on-year to 40,738 GWh.
Iberdrola's networks business unit did better financially, posting EBITDA of EUR 1.59 billion, up 20.9%.
The utility giant is currently building 7.5 GW of renewables across its markets Spain, the US, the UK, Brazil, France, Germany, Portugal and Australia. Offshore wind projects represent close to 2.6 GW of the capacity under construction.
Regarding the net profit outlook, Iberdrola reaffirmed its 2022 guidance to a range of EUR 4 billion and EUR 4.2 billion. It said that it expects low hydro, wind and nuclear power production to recover in the coming quarters, while new renewable capacity, investments in networks and growth mainly in the US and Brazil will bring important contributions to the results.
(EUR 1.0 = USD 1.062)
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Iberdrola Chairman Ignacio Galan. Image source: Iberdrola (www.iberdrola.com)
