Iberdrola SA (IBDRY) Q3 2024 Earnings Call Highlights: Robust Profit Growth and Strategic ...

In This Article:

  • Net Profit: EUR5,471 million, up 50%.

  • Reported EBITDA: EUR13.3 billion, up 23%.

  • Recurring EBITDA: EUR11,151 million, up 11%.

  • Total Cash Flow: EUR13,921 million, up 16%.

  • Recurring FFO: EUR8,188 million, up 13%.

  • Liquidity Position: Over EUR22 billion.

  • Organic Investment: EUR8.6 billion, up 12%.

  • Network Asset Base: EUR47.6 billion, up 7%.

  • Net Debt: EUR46.7 billion.

  • Interim Shareholder Remuneration: Increased by 14% to EUR0.23 per share.

  • FFO to Adjusted Net Debt Ratio: 25.3%.

  • Net Operating Expenses: Improved 34% on a reported basis.

  • Gross Margin: EUR18 billion, up 5%.

  • Investment in Networks: EUR4,894 million, up 25% year-on-year.

  • Renewable Capacity: Added more than 2,300 MW, mainly offshore wind.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Iberdrola SA (IBDRY) reported a 50% increase in net profit, reaching EUR5,471 million for the first nine months of 2024.

  • The company's EBITDA increased by 23% to EUR13,269 million, with an 11% growth in recurring terms.

  • Iberdrola SA (IBDRY) has a strong liquidity position with over EUR22 billion, sufficient to cover 20 months of financial needs.

  • The company has secured 90% of its network and renewable supplies through 2026, ensuring stability in its supply chain.

  • Iberdrola SA (IBDRY) increased its interim shareholder remuneration by 14% to EUR0.23 per share, reflecting strong financial performance.

Negative Points

  • FX evolution had a minor negative effect on results, with the Brazilian real depreciating by 4.5% and the dollar by 0.2%.

  • EBITDA in the UK fell by 20% due to a positive one-off related to tariff deficit recovery in 2023 and a negative one-off issue at an offshore wind farm.

  • In Brazil, EBITDA decreased by 7.8% due to lower thermal contribution, despite higher wind resource and hydro asset contributions.

  • The company faces potential regulatory challenges in Spain, with discussions about extending a 1.2% revenue tax.

  • There are concerns about supply chain bottlenecks, particularly in the availability of vessels for offshore wind projects.

Q & A Highlights

Q: What is the guidance for Iberdrola's 2024 financial performance, and what are the key drivers? A: Jose Ignacio Sanchez Galan, Executive Chairman, stated that the guidance for 2024 is around EUR5,500 million, excluding capital gains from asset rotation. This growth aligns with the interim dividend increase of 14%-15%, driven by positive business trends and new investments totaling EUR9.6 billion in the first nine months of 2024.