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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.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
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Liberum
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Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
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
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Hardman & Co
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
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Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
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Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
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Canaccord Genuity
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Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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