Iberdrola's adjusted first-quarter profits grow 11% thanks to network investments

Iberdrola is Europe's largest utility. It reported a?an increase of?11% in its adjusted net profits to 1.87 billion euro in the first three months due to investments in network, especially in the U.S.

More than 300 projects are underway, and the company has raised its forecast for adjusted profit growth this year to more than 8 percent.

The company said that it invested 16 billion euros in the last 12 months, with two thirds of the money going to the networks. In the last 12 months it has added 3,300 megawatts to its new generation capacity, almost 60% of which is onshore and off-shore wind.

Ignacio Galan said, "The current crisis in the Middle East is a reminder of the need to improve energy security, strategic independence, and competitiveness by electrifying. This will lead to additional investment opportunities, as we work to create more resilient, sustainable, and energy-efficient systems."

Iberdrola has said that it will not be affected financially by the conflict in the Middle East, as the company does not depend on fossil fuels or commodities.?93% of equipment purchases have been secured until 2028.

Iberdrola stated that, if the depreciation in the dollar, pound and Brazilian real were not taken into account, adjusted net profits would have increased 17% for the quarter.

The reported net income, which excludes capital?gains derived from asset rotation, fell by 15% to 1,71 billion euros. This is in line with the median estimate of analysts polled at LSEG (1.72 billion euros).

The company reported that its earnings before interest, taxes, depreciation, and amortisation totalled 4,07 billion euros. This is down from 4.5 billion euro a year earlier, but slightly higher than the median forecast.

(source: Reuters)