Spanish renewable energy giant Iberdrola reported a 64% year-on-year surge in profit for the first half of the year, driven by substantial asset sales and increased electricity production, particularly from hydroelectric sources.
Strong Financial Performance
The Spanish company, which has rapidly become a global leader in the renewable energy sector, generated €4.13 billion in net profit between January and June, compared to €2.52 billion in the first half of 2023, according to the results published on Wednesday.
In the second quarter alone, Iberdrola’s profit reached €1.37 billion, surpassing the average expectations of analysts surveyed by financial information provider Factset, who had anticipated €1.22 billion.
Revenue Decline Amidst Lower Electricity Prices
These results were achieved despite a significant decline in the company’s revenue, which amounted to €22.64 billion, compared to €26.26 billion a year ago, in a context of falling electricity prices in its main markets.
The substantial increase in profit during the first half of the year is largely attributed to the sale of 13 power plants owned by Iberdrola in Mexico to the Mexican state.
This transaction, finalized in late February after a protracted dispute with the Mexican government, contributed an extraordinary €1.72 billion to the company’s net income this semester.
Operational Success and Increased Renewable Capacity
The rise in profit is also linked to strong operational performance in recent months, driven by a significant increase in hydroelectric production in Spain (+49%) and the expansion of its installed capacity in renewable energies.
The energy giant, which achieved a record profit of €4.8 billion last year, has increased its installed capacity to over 43.4 gigawatts (GW) by the end of the first half of 2024, adding nearly 3.1 GW of new installations in the past 12 months.
The group announced at the end of March that it plans to invest nearly €41 billion between 2024 and 2026, primarily focusing on the United States (35%), the United Kingdom (24%), and the Iberian Peninsula (15%).