Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on IBERDROLA SA. We currently have 5 research reports from 1 professional analysts.
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Positive growth trend is confirmed and should continue
22 Feb 17
The group has published its FY16 results with weak revenue decreasing by 7% yoy to €29.22bn. However, cost optimisation and a reduction in operating expenses and a combined +€114m FX effect have boosted the EBITDA of the group to €7.8bn, a 7% yoy increase. The network business’s performance with the consolidation of UIL more than compensated for the decrease in the generation & retail, and renewable businesses. Operating profit increased by 19% yoy due to lower amortisation and provision charges. Net profit was €2.7bn which represents a 12% yoy increase, below EBIT growth from higher taxes incurred in 2016, lower revenues from associates (-61% yoy) and higher minority interests. On an adjusted basis, net income reached €2.53bn, which represents an 11.7% yoy increase and was broadly in line with expectations. The dividend payment is slightly above expectations at €0.31/share, which represents an 11% yoy increase. The positive trend should continue in 2017 as the company expects mid single-digit growth at both the EBITDA (6% CAGR) and net profit level (7.5% CAGR).
Heavy investment strategy towards growth pays off
26 Oct 16
Positive Q3 16 results for Iberdrola. Despite the 12.2% yoy decrease in revenues in the third quarter to €6,639m, the group has achieved a 10.8% yoy increase on EBITDA to €1,837m; moreover, operating profit increased by 16.7% yoy to €1,003m, both ahead of forecasts by 1.3% and 1.9% respectively. In addition to this, the group’s net income increased by 41.4% yoy to €584.9m, which is 4.1% ahead of consensus. In the first 9 months, the group had a 9.1% decrease in revenues, reaching €21.54bn. EBITDA, on the other hand, increased by 4.2% to €5.73bn and, on an adjusted basis, (excluding FX effects) it rose by 6.7%. Operating profit increased 7.6% and reported net income 6.4% to €2.04bn, however, on an adjusted basis, it grew by 17% to €1.96bn. The positive performance comes from the network business (+8.8% ytd), which partially compensated for slightly lower profits from the renewable business (-3.3% ytd) and a flat performance in the generation division (-0.1% ytd). In terms of cash flows, the group confirms its positive trend as operating cash flows have improved by 9.5% ytd to €4,717m, and are able to cover the 45% ytd increase in investment the group has under its ambitious capex plan. The only weak point on the release is that the net debt of the group increased by 2.1% in this quarter to reach €28.42bn. The company confirmed its 2016 outlook in terms of EBITDA (+5%) and net profit (double-digit growth) for 2016.
The positive trend continues: higher net income expectations
20 Jul 16
Iberdrola continues its positive trend with earnings growth in the 2016 half-year results, despite revenue falling 7.6% yoy to €14,898m, as EBITDA increased 1.4% yoy to €3.89bn (beating consensus by 1.2%) and operating profit reached €2.25bn (+3.9% yoy). However, the biggest improvement was seen in the net financial result as it improved by more than 30% yoy due to lower financial costs and exchange rate hedges, pushing upward the adjusted net income towards a 13.9% yoy increase to €1.43bn (although 1.5% below expectations). On the cash flow side, operating cash flows increased 6.54% yoy to €3,227m due to the improvement in earnings, as adjusted EBITDA grew 5.8% in the first quarter. Moreover, following the strategic plan, Iberdrola increased investment by 42.7% yoy to €1,859m, in which 67.5% had been attributed to growth projects. Following this strong results publication, the company has stated that it now expects net profit to grow at a higher rate than EBITDA (which is expected at 5%) despite FX and one-off effects.
Results impacted by lower prices and one-offs
27 Apr 16
Iberdrola reported earnings slightly below expectation as EBITDA decreased by 6% yoy to €2,008m and fell 2% short of expectations. Revenues decreased 7% yoy to €8,185m with operating profit decreasing by 7% yoy to 1,249m (4% below forecasts). Reported net income improved by 3.3% yoy to €868.7m but, on an adjusted basis, it reached €836.8m, which is a 5.1% yoy increase, although 1% short of expectations. Net debt increased by €1,969m yoy to €28,274m mainly due to the consolidation of Avantgrid. On the other hand, operating cash flows improved by 2.3% yoy to €1.7bn. Despite the negative results, the group maintains the FY guidance with growth expectations. Management maintained the 2016 guidance as the company expects the negative effects seen in the first quarter to be offset during the year. Both the liberalized and regulated businesses were down (-€133m and -€104m respectively).
Results boosted by renewables and networks; growth expectations raised
24 Feb 16
Positive results for the group as revenues increased by 4.6% to €31.46bn, beating expectations by the same amount, while EBITDA reached €7.3bn with a 5% yoy increase and in line with forecasts. Operating profit, on the other hand, declined by 3% yoy due to higher depreciation expenses (+9%), an increase in provisions (+69%) and a €230m impairment. Reported net income increased 4.1% yoy and reached €2.42bn, in line with forecasts, boosted by one-offs such as the reversal of tax provisions and a lower UK tax rate; however, on an adjusted basis, net income increased by 5.6% yoy to €2.26bn, but this is slightly below expectations. The Avangrid transaction in the USA actually had a negative impact in Q4 15, as adjusted for this net profit would have reached €2.46bn. The dividend has been increased 4% to €0.28, which is slightly above expectations. Net debt increased by 14% yoy due mainly to the integration of UIL (Avangrid). Without UIL, net debt would have reached €25.66bn which is better than expected. Operating cash flow remains strong and improved by 8.2% yoy to €5.9bn. The group expects a strong performance for 2016 with both EBITDA and net profit growth driven by Avangrid's full-year contribution, new power plants in Mexico, higher hydro reserves and renewable capacity, and an increase in the network asset base.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
Panmure Morning Note 29-03-2017
29 Mar 17
We are cutting our recommendation to HOLD as we see little upside from current levels given the lack of positive surprises in today’s trading update. Multiples of 4.4x 2017 sales and 17x 2017 EBITDA imply an expectation of at least slightly exceeding expectations. We had assumed that acquisitions will provide the momentum until organic investments deliver. However, acquisitions are proving elusive and excess cash is diluting returns. Moreover, our forecast relies on at least one order in vehicle simulator market, which has yet to be announced. The management has shown that it can use the financial markets to raise equity but it now needs to show that it can deploy excess equity productively.
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)