Iberdrola Reports 50% Increase in Net Profit

By Pietro Lombardi
MADRID (Reuters) – Europe's largest utility, Iberdrola (OTC:IBDRY), announced a 50% increase in net profit for the first nine months of the year, showcasing the benefits of its focus on Britain and the United States.

This profit growth is part of a broader strategy to develop and upgrade power grids while selectively investing in renewables, especially offshore wind projects, elevating its market capitalization.

Record investments over the past year enabled the Spanish utility to incorporate lucrative regulated assets into its operations and expand its renewable capacity. The company's previous outlook, raised in the last two quarters, credits operations in Britain and the U.S. as the primary catalysts for its performance this year.

Iberdrola is exploring further expansion in its core renewables and grid sectors and is considering ventures such as data centres for additional growth.

"Our continued major investment drive is delivering new renewables projects and regulated assets, and the contribution to results of our increased offshore wind capacity underlines the reason why investment in this technology was a key pillar in our strategic plan," stated Executive Chairman Ignacio Sanchez Galan.

The company anticipates a 14% increase in net profit this year, projecting earnings of approximately 5.5 billion euros, excluding one-offs like the sale of some assets in Mexico. This aligns with the growth of its interim dividend, set at 0.23 euros per share.

Net profit for the period surged to 5.47 billion euros ($5.91 billion) from 3.64 billion euros. Core earnings (EBITDA) climbed 23% to 13.27 billion euros.

With the majority of grid and network supplies secured through 2026, Iberdrola is now focusing on arranging supplies for 2027 and beyond.

($1 = 0.9255 euros)