Utility Iberdrola sees profit growing by up to 7% in 2024

Credit: REUTERS/VINCENT WEST

By David Latona

MADRID, Feb 22 (Reuters) - Spanish utility Iberdrola IBE.MC said on Thursday it expected its net profit to grow by between 5% and 7% in 2024, excluding capital gains, as it plans to invest 12 billion euros ($13 billion) throughout the year, a new record for the company.

It added it expected its 2024 dividend to rise in line with net profit.

Executive Chairman Ignacio Sanchez Galan said Iberdrola would continue to invest "significantly" in the energy transition, with networks and offshore wind projects in the United States, Germany and Britain driving growth.

The company is also set to expand its renewable capacity by 2,000 megawatts onshore.

Shares in the company were down 0.9% on Spain's blue-chip index .IBEX at 0830 GMT.

RBC Europe analyst Fernando Garcia said Iberdrola's earnings this year were likely to be impacted by lower power prices, though it could offset the hit with growth through new investments and focusing on platforms or countries that offered a better risk-adjusted return.

Iberdrola reported a net profit of 4.8 billion euros for the full year 2023, an 11% increase compared to 2022. The result was in line with the company's guidance of double-digit growth and the consensus of analysts polled by Reuters.

Earnings before interest, taxes, depreciation and amortisation were 14.42 billion euros, up 9% from the previous year.

The utility said it would pay out a proposed dividend of 0.55 euros per share, 11% more than on the 2022 results. Shareholders had already received an interim dividend of 0.202 euros per share on Jan. 31.

In Spain, Iberdrola paid 1.7 billion euros in taxes - a 99% increase compared to 2022 - after Madrid introduced a 1.2% tax on revenues and a profit claw-back, both temporary levies passed as emergency measures in a bid to manage record-high market prices.

($1 = 0.9228 euros)

(Reporting by David Latona; Editing by Pietro Lombardi and Inti Landauro)

((david.latona@thomsonreuters.com; +34 918 35 68 13;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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