Iberdrola upgrades its guidance for the year following good results

Iberdrola inaugurates its first offshore project In Germany
Bankinter | Good results for Iberdrola in Q1 2019, beating market estimates. The principal figures compared to the Bloomburg consensus are: income 12.599 billion euros (+12%) vs 2.494 billion euros; EBITDA 2.599 billion euros (+12% vs 2.494 billion euros; EBIT 1,632 billion euros (+185) vs 1.533 billion euros; Net Annual Profit 964 M€ (+15%) vs 871 M€; funds generated by operations 2.037 billion euros (+8.5%); Net debt 35.559 billion euros (vs 34.217 billion euros in December 2018).

Good results driven by: (i) greater renewables and network capacity, (ii) increase in network tariffs in the US and Brasil, (iii) operational efficiencies, (iv) positive exchange rate impact (favourable evolution of dollar and sterling against euro in this period), and (v) reduction in debt costs. These positive factors have more than compensated for the negative impacts of lower renewable production in Spain due to unfavourable conditions (little rain and little wind) which have led to lower charging factors in the period.

In addition, in the UK market, the group had been affected in the quarter by the establishment on limits in commercialisation tariffs which has resulted in lower profits in the division.

The EBITDA has beaten estimates. The consensus pointed to an EBITDA around 2.500 billion euros compared to the 2.599 billion euros finally reported. Following these better than expected results, Iberdrola has upgraded its guidance for the year as a whole. From middle single digit growth for net annual profit and dividend per share it has moved to high single digit growth in both cases.



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