Iberdrola announces a slight increase in net profit in the first quarter

The Spanish giant, one of the world leaders in renewable energies, earned 1,06 billion euros in profit between January and March, an increase of 3% compared to the first quarter of 2021 (1,02 billion).

This figure is slightly higher than the forecasts of analysts polled by the financial information provider Factset, who expected an average of 1,04 billion euros in profits.

It is explained in particular by good results in the United States and Brazil, where activity was stimulated by major investments, underlines Iberdrola in a press release.

The Spanish group, on the other hand, saw its profit fall by 29% over one year in Spain, to 337 million euros – or less than a third of its global result.

This is explained by the surge in “its supply cost”, which was not “passed on to customers” benefiting from fixed prices, assures the company in its press release.

On the Madrid stock exchange, the price of Iberdrola was down slightly (-1,04%) at 07:50 GMT, in a market that was also down (-0,94%).

Energy prices have soared in recent months due to market tensions related to the recovery of activity after months of pandemic, and the invasion of Ukraine by Russia.

"The current crisis in the energy market demonstrates the need to accelerate the energy transition to achieve energy autonomy in Europe", underlines the president of Iberdrola, Ignacio Galán.

This must go through "solutions within a European framework" and through "continuous dialogue between agents and administrations", adds Mr. Galan, quoted in the press release.

Iberdrola said it invested 2,1 billion euros in the first quarter, and 9,6 billion euros over the last 12 months, the vast majority to develop its renewable energy production capacity.

These investments primarily concerned the United States (32%), Spain (20%), Brazil (18%) and the United Kingdom (15%), with significant amounts injected into wind power in sea, says the group.

Over the past 12 months, 3.500 megawatts (MW) of renewable energy have been installed, including 1.218 MW in the photovoltaic sector, 1.136 MW in onshore wind power and 998 MW in hydroelectricity.

Iberdrola, which now has a portfolio of 90.000 megawatts, confirms in view of its investments its objectives for 2022, with a profit of between 4 and 4,2 billion euros.