Investing.com -- Shares of Iberdrola, S.A. (OTC:IBDRY) rose after the company reported strong results for the first nine months of 2024, driven by underlying performance and favorable hydroelectric output in Spain.
At 4:57 am (0857 GMT), Iberdrola, S.A was trading 1.9% higher at €14.098.
The energy giant posted an EBITDA of €13.269 billion, which was slightly below the Bloomberg consensus estimate of €13.460 billion, while analysts from RBC Capital Markets had anticipated €13.244 billion.
Despite the small miss, the results were aided by strong fundamentals, particularly in recurring EBITDA, which excludes one-off gains and non-recurring items.
On a recurring basis, Iberdrola's EBITDA grew by 11% year-on-year to €11.551 billion.
Additionally, the company's reported net income for the period came in at €5.471 billion, exceeding consensus expectations of €5.286 billion.
Excluding capital gains from asset sales in Mexico, net income still showed robust growth, rising 22% year-on-year to €4.305 billion.
The company's results were boosted by improved hydroelectric generation in Spain, which surged by 68% compared to the previous year, offsetting some weaker performance in other areas like offshore wind in the UK.
Net debt also slightly increased, standing at €46.697 billion, which was broadly in line with the RBC forecast of €46.5 billion.
Analysts at RBC Capital Markets said that Iberdrola's earnings are expected to be influenced by lower power prices, particularly due to reduced margins in hydro, nuclear, and renewable generation.
However, they believe the company could mitigate this impact through growth generated from new investments, improved returns in its network operations, and a more selective approach to renewable investments.
Additionally, Iberdrola has multiple growth avenues across its various platforms—including networks, renewables, and generation/supply—and in diverse markets such as Spain, the US, UK, Brazil, Mexico, and Australia.
This allows the company to focus on areas that provide the best risk-adjusted returns, contributing to an upward trend in their expected rates of return and offering opportunities for value creation, the analysts said.