(Bloomberg) -- Iberdrola SA reported a 23% jump in profit, reflecting a robust performance in power generation and retail, and raised full-year guidance.
The Spanish utility has benefited from higher electricity production — with hydro output particularly strong — as well as a drop in procurement costs for natural gas. Power prices also picked up during the past six months, while an expansion of Iberdrola’s regulated grid business promises steady returns.
Earnings before interest, taxes, depreciation and amortization rose to €13.27 billion ($14.3 billion) in the first nine months of 2024, the company said Wednesday in a statement. Iberdrola raised the interim dividend by 14%, and said it expects similar growth in full-year net income.
Ebitda at the utility’s Spanish generation and retail division rose 17% year on year. That was enough to offset lower results from the UK business, where a cable failure at a wind farm off East Anglia weighed on profit.
Iberdrola in August agreed to buy a majority stake in British grid operator Electricity North-West — making the UK its biggest market by regulated asset base. Power networks are at the forefront of Europe’s electrification drive, linking up car-charging points, home heat pumps and renewable-energy plants.
Iberdrola reported UK Networks Ebitda of €1.08 billion. The company announced plans this month to double investment in the country through 2028, citing its “significant power demand growth prospects” and net zero energy policies.
The shares have increased by 17% this year and are trading near a record-high.
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