Iberdrola Reports Record Net Profit of 2.76 Billion Euros in Q1, Boosted by Mexico Gas Plant Sale and Robust Network Performance

Iberdrola, Europe’s largest electricity company, reported a net profit of 2,760 million euros in the first quarter of 2024, an increase of nearly 90% compared to the same period last year. This growth was primarily driven by the sale of its combined cycle (gas) plants in Mexico, which brought in a capital gain of 1,165 million to its income statement. Without this operation, the net profit would have still seen a substantial increase of around 27%.

The company forecasts a net profit of more than 5,000 million by year-end. This new historical high is attributed to strong operating performance, investments, and new regulatory frameworks in the network business. President Ignacio Sánchez Galán noted the good performance in the first quarter, indicating an improvement in forecasts for the entire year.

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.

The sale of its fossil business in Mexico helped Iberdrola reduce its debt for the first time in several quarters