Iberdrola SA reported better-than-expected earnings as its network business boomed, vindicating a decision to ramp up power-grid investment.
(Bloomberg) — Iberdrola SA reported better-than-expected earnings as its network business boomed, vindicating a decision to ramp up power-grid investment.
A focus on regulated assets from the US to Brazil ensured steady returns last year as the war in Ukraine roiled markets and inflationary pressures mounted. Iberdrola’s results follow a strong showing by many European peers, with EON SE, RWE AG and Centrica Plc all beating profit estimates in recent weeks.
Net income rose 11.7% to €4.34 billion ($4.6 billion) in 2022, beating analyst estimates of €4.25 billion. The company’s networks business reported a profit of €2.19 billion after €1.47 billion the previous year, Iberdrola said in a statement Wednesday.
In November, Spain’s biggest utility said it would allocate €27 billion over the next three years to power grids, expanding and strengthening capacity as more renewable energy flows into the system and industries electrify. That outlay is more than half of its total investments planned for the period.
Iberdrola operates electricity networks in Europe and the Americas. In the US and Brazil, especially, it has benefited from currency tailwinds over the past year.
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