Iberdrola (IBE) Q4 2023 earnings summary

Executive summary

• FY23 net profit rose 10.7% to €4,803M and EBITDA increased 9% to €14,417M, supported by growth in Networks and Energy Production & Customers.

• Record gross investment reached €11,382M, up 6%; operating cash flow increased 8% to €11,096M on a comparable basis excluding the 2022 hydro canon collection.

• 2024 outlook targets 5–7% net profit growth, €12B of new investment and dividends growing in line with results, excluding capital gains from asset rotation.

Financial highlights

• Revenue fell 8.6% to €49,335M, while gross margin rose 15.4% to €23,302M, reflecting higher production and lower procurement costs.

• EBITDA was €14,417M, up 9%; EBIT rose 12.4% to €8,973M. Q4 EBITDA included €117M of efficiency-plan costs.

• Reported net profit increased 10.7% to €4,803M; net financial expenses rose 19% to €2,187M and taxes rose 38.6% to €1,610M.

• Net operating expenses increased 17.8% to €6,136M; excluding extraordinary US reconciliation impacts, personnel expenses rose 7.4% and external services 4.8%.

• Levies climbed 55.9% to €2,748M; Spain accounted for €1,703M, up 99.1% and 86% of the total increase.

Outlook and guidance

• FY24 net profit growth target is 5–7%, with dividend growth in line with results; outlook excludes capital gains from asset rotation.

• Planned 2024 investment is €12B; growth drivers include US rate cases, UK RIIO-ED2/T2 and Brazilian rate cases covering 75% of Neoenergia’s asset base.

• Renewables plan includes 600 MW of offshore wind installed in 2023 contributing to results and ~2,000 MW of new onshore capacity; 100% of energy is sold at secured prices.

• Lower financial expenses are expected to benefit results following the Mexico transaction and partnerships in other geographies.