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Iberdrola released earnings that were globally in line with the consensus. Hydro generation still drove earnings, whilst onshore wind conditions remained poor, also seen among peers since the beginning of the year. However, offshore wind partially offset the lower load factor in onshore wind. Renewables generation, investments in networks and new rate cases in Brazil contributed to increase the group’s FY23 net income guidance from ‘high single-digit’ to ‘double-digit’.
Companies: Iberdrola SA (IBE:MCE)Iberdrola (IBE:BME)
AlphaValue
Iberdrola’s US subsidiary Avangrid, which is focused on grid services in New England, Pennsylvania, New York and on renewables development, received a very positive outcome yesterday from the NY Public Service Commission.
Iberdrola reported EBITDA up by 17.3% to 7.5bn (Cons BB 7.5bn) supported by a 6.5% increase in renewables capacity over the last 12 months. The group increased the guidance on net profit growth from a ‘mid to high single digit’ to by a ‘high single digit’ as hydro condition have almost fully recovered while continuing to deploy additional renewables capacity.
Excellent set of results for Iberdrola that got the ball rolling in the sector, with figures beating estimates, mainly supported by the strong generation from renewables assets and particularly thanks to the solar activity but also a strong recovery in hydro in Q3 23 compared with last year. A strong dynamic in the main business units led the Spanish group to confirm a total remuneration amounting to €0.49/share proposed as part of the FY2022 results and being confident in the completion of the
After soaring gas and power prices in 2022, the Spanish company reported a strong operating performance and a net profit record to €4.33bn, supported by growth in all geographies except for Spain where the group reported a 19% drop. The group benefited from both higher energy prices and higher renewables capacities as well as an increased regulated asset base. However, the windfall tax imposed by Spanish public authorities seems to be weighing on the group’s forecasts and investments.
Iberdrola’s Q3-2022 results beat estimates, with an 9M2022 EBITDA up 17% at €9.53bn, with growth in all geographies except Spain, driven mainly by the USA and Brazil in the Networks and Renewables segments. The group also benefited from its currency positions in the US Dollar and Brazilian Real that appreciated strongly over the year, supporting EBITDA and Net profit. However, net profit continued to decrease in Spain, amid lower renewables production and a negative impact from volatile gas ma
Iberdrola’s H1 22 results were strong overall. EBITDA beat expectations by c.7% driven by Networks, in particular in the US, although some extraordinary impacts must be mentioned. Interestingly, networks were at the forefront of the growth and outperformance, pushed by FX, inflation and capex. Reassuring comments on the current environment are worth mentioning, namely no dependence on Russian gas or oil, providing confidence and visibility which are of great value in these troubled times. T
There were no major surprises from Iberdrola’s Q1 22 results as the figures closely matched the consensus. The main point to note is weak generation in Iberia due to low hydro and nuclear outputs, more than offset by higher network RAB in particular in the US and Brazil. EBITDA grew by 4.9% yoy, more than net income (+3.2%) which was affected by financial costs. The guidance has been reaffirmed.
Iberdrola released a solid set of FY21 results, standing above the consensus (+7.0%) and our estimates (+9.3%) at the EBITDA level. Note the positive news as well coming from the reiteration of guidance for FY22. The group confirmed its asset base development with record capex, and will proposed a total dividend of €0.44 per share, +4.8% yoy. After a year marked by price volatility, regulatory headwinds and governance risks, this release comes as a sigh of relief.
As in H1, Iberdrola reassured with its networks and renewable businesses, while Generation & Supply segment keeps on disappointing. A positive tax reversal in Spain (€+382m) also offset an impact from the gas clawback (€-85m). However, a blot remains on the regulatory side even if CEO Galan has promoted a ‘return to normal’. Positive view confirmed but let’s be careful.
What if the best solution for the energy transition were … nuclear power? Nuke is back at the heart of political debates in the context of the current energy crisis and massive but insufficient investments in renewables. This short review provides an overview of nuclear power in Europe and speculates on options. This ‘nuke optionality’, hinging on a favourable green taxonomy, is a game-changer for EDF, Centrica, Fortum but also Engie, Iberdrola, Enel and EDP.
The first half year is a mixed bag for Iberdrola, as the strong performance of Renewables offset a weaker-than-expected Generation & Supply and the one-off impact of the increase in UK corporate tax rate to 25% by 2023. At the end of the day, figures matched the consensus and allow the guidance on earnings and dividend to be confirmed. Positive view reiterated as Iberdrola may have reached an inflection point.
The Spanish utility’s EBITDA remained unchanged and, as always, hurt by non-recurring items such as the pandemic and above all FX impacts. This overshadowed a solid quarter for the group, as EBITDA would have increased by 12% excluding these effects. Significant investments and a substantial pipeline are, however, brightening outlooks. Positive view confirmed.
EBITDA is quite stable (-1%) to €10.0bn, slightly below the consensus and well below our bullish expectations of €11.1bn. It was severely affected by FX fluctuations (€487m) and the COVID-19 impact (€218m) which were difficult to forecast and explain the deviations from the consensus. The FY20 proposed dividend is up by 5% to €0.42. Gross investments (+13.3%) reached a record to €9.2bn. Non-recurring items globally weighed on the results, overshadowing the resilient operating figures.
Iberdrola realised an overall good Q3. The figures are in line with expectations and the group expects an acceleration in Q4. In addition, the negative elements are, for the most part, non-recurring. Iberdrola also announced the start of negotiations to acquire fully PNM Resources, an integrated utility operating in New Mexico and Texas, for $4.3bn. We confirm our positive view, even with a limited upside.
Companies: Iberdrola SA
Research Tree provides access to ongoing research coverage, media content and regulatory news on Iberdrola SA. We currently have 0 research reports from 3 professional analysts.
Companies: PLL AAL SAV KAV MKA AMC
SP Angel
Ultimate Products’ Q3 trading update reveals that tougher short-term trading trends are now likely to persist into Q4, but the longer-term trends are now more positive due to growing order visibility from its bigger customers. We are downgrading our EPS (Dil. Adj.) forecasts by 22% to 12.5p from 16.0p for FY24E, by 15.3% to 14.8p from 17.4p in FY25E and by 12.6% to 16.6p from 19.0p for FY26E. We reduce our target price to 185p (was 210p) to reflect the new forecasts. Shorter-term issues should r
Companies: Ultimate Products PLC
Cavendish
Companies: 88E MTC TIA DEC ULTP
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Ultimate Products announces today that sales revenue fell by 7% in its FY2024 third quarter and is anticipated to remain in negative territory in Q4. As a result, the company believes that EBITDA will now be in the range of £17.5m to £18.5m compared with a current market consensus figure of £21.5m. Given the 17% cut in current year EBITDA expectations it seems prudent to adjust our fair value / share figure by a similar amount. So, we reduce it by 20% from 250p to 200p. However, current sales s
Equity Development
Norcros recently hosted a Capital Markets Day (CMD) signalling a change in how the business communicates with the market. In recent history it has focused on growing its share of the highly fragmented bathroom and kitchen product markets organically and through acquisition. This has resulted in a portfolio of businesses with varying degrees of capital intensity and profitability but created a Group of scale (c. £450m revenue) with strong positions in its end markets. Last week’s CMD was evidence
Companies: Norcros plc
Zeus Capital
Economic and industrial data has started the second quarter on slightly weaker grounds than Q1 as Manufacturing PMI in the UK, Eurozone and US all reported April indexes below March levels. Cracks seem to be appearing as recent drops in new orders and rising input costs are quickly dampening confidence. Inflation did, however, fall MoM across the board with the exception of the US, where volatile energy prices caused a modest MoM increase in the inflation rate.
Companies: TAND AVON RCDO TRI SYM ABDP KETL
Eden Research has reported its interim results for the 12 months to December 2023. The company generated revenues of £3.2m, slightly ahead of the January trading updated expectation of £3.1m and c15% ahead of our forecast. We note the company generated strong gross profits and an adjusted EBITA ahead of our forecast, both of which we believe were supported by the first commercial sale of Ecovelex. The company closed FY23 with cash slightly below our forecast, which we believe was impacted by the
Companies: Eden Research plc
SDI has indicated that a slowdown in the life science / biotech market, and some resultant destocking, is likely to impact its expected FY24 revenue, leading the group to moderate current year guidance for both revenue and adjusted EBITDA. SDI notes that FY24 represents a short-term phenomenon, due to the over-ordering of the past three years caused by inflated Covid demand. However, we remain confident for the long term, given the strength of SDI’s ‘buy and build’ business model, with a number
Companies: SDI Group plc
Progressive Equity Research
Companies: Judges Scientific plc
Shore Capital
ATOME is to raise £1.8m, gross of costs, from a share placement and subscription. 3.8m new ordinary shares are being issued at 50p, marking a discount of 12% on Friday’s closing price. Directors and senior management have subscribed for a combined £665k of the total £1.8m with other investors making up the balance. The raise allows ATOME to continue to develop Phase 1 of the 145MW Villeta green fertiliser project and provides additional working capital for the company as they seek to finalise FE
Companies: ATOME PLC
Longspur Clean Energy
Invinity Energy Systems (IES LN) develops Vanadium Flow Batteries (VFBs) for utility-scale grid storage. The Group’s next-generation Mistral VFB technology, jointly developed with Gamesa Electric, launches in H2 2024 to provide grid-scale longer-duration energy storage (LDES) as renewable generation increases globally. To capture this opportunity, the Group has today announced that it has raised £56.0m through a placing at 23p per share. It is now undertaking an Open Offer to raise up to £6.6m a
Companies: Invinity Energy Systems PLC
VSA Capital
Companies: ITV RR/ KWS JD/ SENX
We have undertaken a scenario analysis of project funding options for ATOME. Our new backstop valuation based on topco equity funding at the level of the last equity raise gives protection at 64p. A more efficient solution of project sales at FID gives 200p but an even more efficient farm down model gives 252p. Financial close on Villeta this year could be a catalyst for these higher valuations. All options offer strong value at today’s share price and show that ATOME has optionality in financin
Invinity’s major equity fundraising is targeting a minimum of £50m with half already committed by the UK Infrastructure Bank (UKIB). A second strategic investment of £3m has been committed by Korean Investment Partners. The raise will see Invinity to net cash generation, with £30m of the raise supporting the company’s scale up ahead of this year’s launch of the next generation Mistral flow battery. The raise will boost the balance sheet, reducing counterparty risk and unlocking sales and bigger
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