Alphavalue/DIVACONS | Despite the Trump administration’s intention to halt work on five offshore concessions, our analysts believe that the measure has limited impact on Iberdrola (IBE).
The company itself clarified that 80% of the wind turbines at the Vineyard Wind One offshore wind farm have been producing electricity for months and supply power to nearly 400,000 homes in Massachusetts. Only two of the 62 nacelles remain to be installed.
The safety-related halt order only affects farms under construction and explicitly authorises the production of already installed wind turbines, so it has no impact on Iberdrola’s generation or financial results.
In addition, Vineyard Wind One has a Memorandum of Understanding (MOU) with the US Department of Defence.
Iberdrola remains one of our preferred utilities, although after its excellent annual performance (37.56% YTD), its 6-month fundamental potential has fallen to 3.69%.
Iberdrola: Reduce, Target Price €19/share.
