U.S., Brazil increase Iberdrola’s profits, offset Spanish woes

© Stocksak. FILE PHOTO – An electric vehicle is plugged in to an Iberdrola charging point in Bilbao (Spain), October 25, 2022. REUTERS/Vincent West

MADRID, Spain (Stocksak). Europe’s largest utility Iberdrola reported a 29% increase on Wednesday in its nine-month net profits. Strong performances in the U.S. market and Brazil and larger investments made in renewables offset a decline at home in Spain.

The company reported a net profit in the January-September period of 3.1 billion euros (or $3.09 billion). It said that geographical diversification allowed it maximise growth and to benefit from positive currency swings.

Iberdrola stated that Spain’s net profit dropped by 14% due to summer droughts.

It said that investments by the company were 14.2% higher than last year’s same period. The company allocated 90% to renewables, smart grids, and smart energy to accelerate electrification, and energy independence from fossilfuels.

Since Russia’s invasion in Ukraine in February, energy prices in Europe have risen. This has been a shock to markets still reeling from the COVID-19 pandemic that created additional uncertainty and caused supply disruptions.

Jose Ignacio Sanchez Galan, Executive Chair, stated that accelerating investments in electrification would allow us to be less dependent of the volatility in oil and gas and will generate more growth, as this set shows,” in a statement.

Earnings before interest and taxes, depreciation and amortization (EBITDA), increased by 17% to 9.53 Billion euros.

Iberdrola reiterated its forecast of an annual net profit of between 4 and 4.2 billion euros. 

It also announced that an interim dividend of 0.18 euros per share had been approved. This dividend will be paid in January 2023.

($1 = 1.0033 euros)

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