Iberdrola’s Renewed Resilience: How the Company Overcame Challenges to Achieve a Profitable First Quarter

Iberdrola, Europe’s largest electricity company, reported a net profit of 2,760 million euros in the first quarter of 2024, up from 1,485 million in the same period last year. This increase was largely due to 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’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.

President Ignacio Sánchez Galán noted the good performance in the first quarter, indicating an improvement in forecasts for the entire year. The company 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.

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 31, 2024. Investments grew by 36% in the first quarter, reaching a record of almost 2.4 billion euros, with a significant portion allocated to renewable energy projects. The company’s investment strategy is focused on electrification and renewable energy technologies.

Sanchez Galan highlighted the unstoppable trend of electrification moving forward. Iberdrola continues to invest in renewable energy infrastructure to support this growing sector. Despite market fluctuations and challenges