Iberdrola, Europe’s largest electricity company, reported a net profit of 2,760 million euros in the first quarter of 2024. This was a significant increase from the 1,485 million recorded in the same period the year before. The primary driver of this growth was the sale of its combined cycle (gas) plants in Mexico, which resulted in a capital gain of 1,165 million. Without this operation, the net profit would have still seen a substantial 27% jump.
Iberdrola’s gross operating result (ebitda), excluding the Mexico operation, showed profits of 4,140 million euros in the first quarter. This growth stemmed from enhancements in electrical networks as well as notable contributions from renewable generation in various geographic regions. Despite challenges like collapsing electricity prices, the company demonstrated growth and resilience in its operational performance.
President Ignacio Sánchez Galán noted the good performance in the first quarter and indicated an improvement in forecasts for the entire year. He also highlighted an unstoppable trend towards electrification moving forward. Iberdrola continues to invest heavily in renewable energy infrastructure to support this growing sector. In fact, investments grew by 36% in the first quarter, reaching a record of almost 2.4 billion euros, with a significant portion allocated to renewable energy projects. The company’s investment strategy is focused on electrification and renewable energy technologies.
The sale of its fossil business in Mexico helped Iberdrola reduce its debt for the first time in several quarters from over 47,800 million to 45,000 million as of March 31st., 2024. Despite market fluctuations and challenges such as collapsing electricity prices