This content was published on Jul 27, 2022 – 8:21 am
Energy group Iberdrola’s profits rose by 36% in the first half of the year, despite the fall in its results in Spain, where the existence of fixed tariffs did not allow it to fully pass on the rise in costs.
The Spanish giant, one of the world leaders in renewable energy, reported a net profit of 2,070 million euros between January and June, compared to 1,530 million registered in the first half of 2021. Its turnover, for its part, increased by almost 30% up to 24,400 million euros.
These figures beat forecasts by analysts consulted by financial information provider Factset, who forecast sales of 21,100 million euros and 1,990 million euros in profits.
According to Iberdrola, this good momentum is explained by a favorable effect of exchange rates related to the devaluation of the euro and by the significant growth of its results in the United States, Great Britain and Brazil in the context of rising energy prices.
In Spain, on the other hand, the group’s profits fell by 26% in one year. According to Iberdrola, this decrease can be explained by the increase in supply costs, which has not been passed on to fixed-price customers.
The results come shortly after the Spanish government announced next year that it would introduce a special tax on the profits of big energy companies, which the state aims to collect €2,000 million a year in 2023 and 2024.
The measure, designed to compensate for the support mechanisms introduced in recent months to compensate for runaway inflation, has been criticized by Spanish employers who believe it could reduce the investment capacity of the affected groups.
According to Iberdrola, it invested 4,740 million euros in the first half of the year, the majority in the expansion of its production capacity for renewable energies. The group also says it forecasts an “acceleration” in ongoing investment in the second half.
In the last 12 months, Iberdrola has installed 3,400 megawatts (MW) of renewable energy worldwide, of which 1,241 MW are photovoltaic, 996 MW wind power and 998 MW hydropower.