Iberdrola Raises Profit Outlook After Mexico Asset Sale Boosts Earnings — Update

By Pierre Bertrand

Iberdrola raised its outlook for the year after it reported an increase in net profit in the first three months, helped by the sale of assets in Mexico.

The Spanish energy company raised its net profit outlook for the year to high-single-digit growth as a result of what it said was its strong operational performance in the first quarter. Iberdrola previously targeted net profit growth of 5% to 7%.

The raised outlook comes as the company reported 2.76 billion euros ($2.95 billion) in net profit for the quarter, compared with EUR1.49 billion a year ago, on revenue that fell 18% to EUR12.68 billion.

Earnings before interest, taxes, depreciation and amortization came in at EUR5.86 billion, a 44% on-year increase, the company said.

Iberdrola, which in February closed on the multi-billion dollar sale of assets in Mexico, said that deal contributed EUR1.72 billion to the company's earnings in the first quarter, of which EUR1.17 billion to net profit.

Excluding the effect of the Mexico sale, net profit would have come to EUR1.6 billion, the company said.

Net production fell by 9.9% on year to 40,904 gigawatt hours and Iberdrola's net owned production also declined in the reporting period by 4.8%, it said.

The company added that renewables production in the Iberian peninsula increased by 19%, reaching a 10-year high of 10,600 gigawatt hours, while energy storage increased by 18% to 2,240 gigawatt hours.

The company said it invested EUR2.38 billion in the first quarter and that it plans to invest EUR12 billion in 2024.

In addition, Iberdrola said it would launch a share buyback Wednesday lasting until June 18 to buy back 24.8 million shares for a maximum of EUR347 million.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

April 24, 2024 04:25 ET (08:25 GMT)

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