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Utility giant Iberdrola has reported net profit of €2.004 billion ($2.3 billion), a growth of 26% year on year, after increasing their investments to €17.3 billion ($19.6 billion) in the last 12 months.
The Spanish TSO says their cash flow surpassed €3.5 billion ($4 billion), up 11%, which will help support their financial strength and ratings following their consolidation of UK-based ENW.
Additionally, the company says that network investments, as well as offshore wind projects entering operation in the coming quarters, will help with cash generation.
In the quarter alone, the company’s investments grew by 14% to €2.720 billion ($3.1 billion), with 65% channelled to the United States and the United Kingdom.
The majority of their investments (53%) went into power networks, with over two thirds going to the US and UK. Over 7% went into renewables, with more than half allocated to offshore wind, namely East Anglia 2 in the UK and Vineyard Wind in the US.
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With the release of their results, Iberdrola reached approximately €100 billion ($113.2 billion) in market capitalisation, marking them the first electricity company in Europe to reach the threshold.
Commenting on the results, Ignacio Galán, executive chairman of Iberdrola, said in a release: “Our focus on regulated networks and selective investment in renewables in A-rated markets has continued to contribute to sustained growth in results and dividends”.
Under Iberdrola’s Strategic Plan, the company plans to invest €21.5 billion ($24.3 billion) in grids in the US, the UK, Brazil and Spain, which represents 60% of net investment.
More than €6.5 billion ($7.4 billion) of this figure is earmarked for transmission grids, ensuring new renewable capacity integration and enabling the implementation of new solutions and distributed services.
Going forward, Iberdrola expects a double-digit increase in net profit, supported by their new investments.
