Iberdrola raises outlook again, eyes higher profit growth through 2030
Iberdrola raises outlook again, eyes higher profit growth through 2030 By Pietro Lombardi
MADRID, Oct 21 (Reuters) - Europe's largest utility Iberdrola IBE.MC on Wednesday raised its profit target for this year for the second time and said it expects profit to increase in coming years at a faster pace than previously forecast, as its focus on power networks pays off.
The Spanish company expects adjusted net profit to grow by at least 10% this year, up from previous guidance of more than 8%, adding that it sees adjusted net profit growing at an average annual rate of 10% over the next five years.
While Iberdrola has increased profits by double digits every year since 2022, the medium-term outlook is above the one it gave through 2028 and other recent forecasts, which usually guided for single-digit growth.
The rosier guidance reflects a strategic shift towards building and upgrading power networks in countries such as Britain and the United States that has been years in the making.
Coupled with a more selective approach to renewable energy generation projects, this strategy has made Iberdrola Europe's top utility by market value and the world's second-largest.
Net profit for the first nine months rose 10% to €5.8 billion ($6.51 billion), due in part to capital gains from the sale of its assets in Mexico to Spain's Cox COXGA.MC group. Excluding the Mexico sale, adjusted net profit was up 9% to €5.1 billion.
($1 = 0.8911 euros)
(Reporting by Pietro Lombardi; Editing by David Latona)
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Iberdrola raises outlook again, sees higher profit growth through 2030 (updated)
Iberdrola raises outlook again, eyes higher profit growth through 2030