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, Financial) 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.
Q: How sustainable is Iberdrola's double-digit growth, and what are the growth prospects for 2025?
A: Jose Ignacio Sanchez Galan mentioned that Iberdrola is ahead of its estimates and expects to continue growing in 2025, surpassing the previous guidance for 2025. The growth will be driven by more investments in networks, higher tariffs, increased capacity, and favorable market conditions.
Q: How might the targets for the 2024-2026 plan change given recent developments?
A: Jose Ignacio Sanchez Galan noted that Iberdrola is progressing a year ahead of its plan, reaching 2025 targets in 2024. The company plans to update its targets for 2026 and beyond in Autumn 2025, following the integration of E&W and further details on RIIO-T3 investments.
Q: What is the expected net debt at the end of 2024, considering cash inflows and transactions?
A: Pepe Sainz, CFO, indicated that net debt could be around EUR50-51 billion, depending on the completion of the Avangrid transaction and asset rotation. The timing of these events will influence the final net debt figure.
Q: What is the status of the E&W acquisition, and how will it impact results?
A: Jose Ignacio Sanchez Galan explained that the acquisition is progressing as expected, with CMA limitations being addressed. The transaction is expected to close by the end of the quarter, but no contribution from E&W is anticipated in 2024 results.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
