Iberdrola Q2 Profit Down; Maintains FY20 View; Stock Down – Quick Facts
Shares of Iberdrola S.A.(IBDSF.PK) were losing around 1 percent in the morning trading in Spain after the utility reported Wednesday that its second-quarter net profit declined 13.6 percent from last year to 587.9 million euros, as a result of the lockdown following COVID-19 pandemic.
In the first half, however, net profit grew 12.2 percent year-on-year to 1.84 billion euros, benefited mainly by the steady flow of activity over the past twelve months.
Net profit reflected a 153 million euros COVID-19 adverse impact.
The first-half gross operating profit or Ebitda amounted to 4.91 billion euros, down 1.4 percent with lower contribution from the networks business, despite growth in renewables and generation and supply. Adjusted Ebitda, after removing the pandemic impacts on this account, grew 4.2 percent to 5.07 billion euros.
The company noted that demand and prices are gradually returning back to normal in Spain and the United Kingdom. Meanwhile, countries such as the United States and Brazil are beginning to implement regulatory compensation measures, with which the company expects to recover around 70 million euros.
Iberdrola has advanced orders for 7 billion euros in the first half of the year, helping to sustain a supply chain that generates 400,000 jobs worldwide.
Further, the company reaffirmed its dividend policy with a new edition of the Iberdrola Retribución Flexible plan, offering 0.232 euro gross per share as supplementary remuneration to complete a shareholder dividend of 0.40 euro gross per share against 2019 earnings.
Looking ahead, for fiscal 2020, the company maintained its net profit growth forecast ranging from ‘mid’ to ‘high single digit’, with the dividend increasing along the same line.
In Spain, Iberdrola shares were trading at 11.14 euros, down 1.15 percent.
Source: Read Full Article