April 27 (Renewables Now) — Spanish power utility Iberdrola SA (BME:IBE) reported net profit of 1.05 billion euros ($1.11 billion) in the first quarter of 2022, up from 3.2% year-over-year, mostly driven by its international business, the group said today.
Iberdrola’s U.S. subsidiary, Avangrid Inc (NYSE: AGR), increased its net profit by 33% over the year, while in Brazil, its unit Neoenergia SA (BVMF: NEOE3) increased its net profit by 20 % in local currency. In contrast, the company’s domestic business, Iberdrola Spain, reduced first-quarter net profit by 29% to 337 million euros. The drop in profits in the domestic market is due to high energy prices which have not been passed on to customers who have already made purchases at previously agreed prices, Iberdrola explained.
The group’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 4.9% to 2.95 billion euros, again thanks to contributions from abroad. Total revenue rose 20.4% to 12.15 billion euros, according to first-quarter results.
Iberdrola’s Electricity Production and Customers business unit, which now combines the results of renewable energies, all other production and distribution divisions, recorded a 6.8% drop in EBITDA to 1.36 billion euros . These results were impacted by high energy prices, low renewable energy production and an unplanned shutdown of the Cofrentes nuclear power plant in Spain that has since been resolved, Iberdrola said.
During the reporting period, global net electricity generation from all sources (renewables, gas and nuclear) fell 5.3% year-on-year to 40,738 GWh.
Iberdrola’s networks business unit performed better financially, posting an EBITDA of 1.59 billion euros, up 20.9%.
The utility giant is currently building 7.5 GW of renewables across its markets, Spain, US, UK, Brazil, France, Germany, Portugal and Australia. Offshore wind projects represent nearly 2.6 GW of capacity under construction.
Regarding the net profit outlook, Iberdrola reaffirmed its forecast for 2022 at a range of 4 billion euros and 4.2 billion euros. He said he expects a recovery in weak hydro, wind and nuclear power generation in the coming quarters, while new renewable capacity, network investment and growth primarily in the United States and Brazil will make important contributions to the results.
(1.0 EUR = 1.062 USD)
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