Iberdrola Lifts Guidance Again After Profit Surge — Update

By Christian Moess Laursen

Iberdrola raised its full-year guidance for a second time this year after net profit jumped in the first half on record rates of renewable-energy production and gains from asset sales in Mexico.

The Spanish energy company said Wednesday that it now expects double-digit net profit growth, up from the previous guidance of high single-digit growth, excluding gains from assets sales.

The upgrade comes as Iberdrola--Europe's largest utility--booked a 64% surge in net profit to 4.13 billion euros ($4.48 billion) in the first six months of the year, boosted by EUR1.72 billion from the sale of assets in Mexico.

Recurring earnings before interest, taxes, depreciation and amortization--which exclude the asset sales--rose 9% to EUR7.90 billion on record-high renewable-energy production driven by offshore wind production and the Iberian peninsula's contribution, the company said.

The electric utility group's net production fell 17% to 71,002 gigawatt hours in the period, dragged by steep falls in Brazil and Mexico output. Renewables production rose 5% to 45,181 GWh.

Gross investment in the half year reached EUR5.28 billion, up 16% and in line with its strategic plan for 2024-26.

Iberdrola said it plans to pay a supplementary dividend of 351 cents a share on July 29.

Shares were up 1.1% at EUR11.92 at 0738 GMT.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

July 24, 2024 04:04 ET (08:04 GMT)

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