The stabilization of the energy market in Europe allowed Iberdrola's profits to reach 1,484 million in the first quarter of 2023, which is 40% more than in the same period of the previous year, according to the results that the energy presented to the market yesterday.
This boost to profits that were already at record levels last year is mainly due to the recovery of the markets in Spain and the United Kingdom, as explained by the company and corroborated by its president, Ignacio Sánchez Galán, during the conference held yesterday with analysts. "We have had to make fewer purchases of energy on the market and at lower prices, since we have had greater production due to the recovery of activity at the Cofrents nuclear power plant and our reservoirs, which, during the first months of year, they have recovered the usual capacity and have allowed us more hydraulic generation", explained Sánchez Galán regarding the business in Spain, where Iberdrola managed to increase the profit before taxes and depreciation (ebitda) by 113%, up to 1,190 million euros, in the business of electricity production and customers. In the case of the United Kingdom, the company collected in the first quarter the deficit of the regulated tariff, 275 million pounds (311 million euros), which had weighed down the results in the last quarter of 2022 in the British market.
Investments climbed 9% to 10.4 billion euros, of which 91% was intended to increase its renewable energy park and its commitment to networks to accelerate electrification, especially in the United States and Brazil.
Following its divestment plan, the electric company announced an agreement with a sovereign investment fund, in this case that of Singapore (GCI), one of the largest investors in the world, with which it has partnered to develop the transport network business in Brazil. Iberdrola has sold him 50% of the assets it had in this country for 215 million euros, with which the portfolio is valued at 430 million. This operation is added to the divestment in Mexico of 5,500 million euros and the alliance with the Norwegian sovereign fund, Norges, for 1,225 million euros signed in January. "These operations have allowed us to complete the asset turnover goals we had set for ourselves," said Galán.
In the political sphere, the manager once again charged against the Government's measures and demanded the abolition of the Iberian exception after the summer, as he does not see it justified to maintain it. His speech did not miss the usual phrase "less stick and more carrot", to ask for more aid for investment in renewables and fewer obstacles. "If this continues, there will not be enough investment for the energy transition", said Galán.
