European energy prices hit historic highs as conflict in Ukraine and fears of supply disruptions further tightened markets already plunged into chaos by the lingering effects of COVID-19.
Iberdrola recently became Europe’s largest utility by market value, overtaking its Italian counterpart and fellow early entrant in the renewable energy market Enel.
The company generates electricity in wind and solar farms, nuclear reactors and gas-fired power plants in Europe and Latin America. It also owns and operates distribution networks and plans to supply electricity to 60 million customers worldwide by 2025.
Iberdrola blamed a 29% annual drop in net profit in Spain on not passing on the effect of high prices to fixed-price customers, but said it still expected the net profit for the whole year reaches 4 to 4.2 billion euros. ($4.25-4.46 billion).
Governments scrambled to find ways to protect voters’ pockets from rising prices, prompting Iberdrola to speak out against state intervention in its key markets.
Managing Director Ignacio Galan called on Wednesday for “a continuous dialogue between market players and administrations”.
“The current crisis demonstrates the need to accelerate the energy transition to achieve energy self-sufficiency in Europe and decarbonize our economy,” he said in a statement.
Net profit of 1.05 billion euros was slightly above the estimate of 1.04 billion euros drawn by analysts polled by the company.