Iberdrola SA (IBE.MC) said Thursday that its first-quarter net profit almost tripled from the year before, boosted by the acquisition last year of U.K. rival Scottish Power.
Iberdrola, Spain's largest power utility by market value, said net profit reached EUR1.2 billion for the three months to March 31, compared with EUR458 million in the same period of last year.
The company unveiled the number, together with others for its renewable energy unit Iberdrola Renovables SA (IBR.MC), ahead of its annual general meeting in Bilbao, northern Spain, later Thursday.
Fernando Garcia, a Madrid-based analyst with Espirito Santo, said the figures for both companies came ahead of expectations. However, he noted that Iberdrola's outperformance may have been due to a lower-than-expected tax rate, depreciation and financial expenses.
Iberdrola plans to release Iberdrola Renovables's first-quarter results Friday and those for the whole group April 21.
Iberdrola Renovables' first-quarter net profit stood at EUR117.5 million, higher than that for the whole of last year, the company said, on a 150% increase in revenue. The figures were boosted by the consolidation of Scottish Power assets.
Iberdrola Renovables' shares rose on the news. At 0933 GMT, they were up EUR0.08, or 1.8%, to EUR4.52, leading Spain's benchmark index IBEX-35. At the same time, Iberdrola shares were down EUR0.05, or 0.5%, to EUR9.57, roughly in line with the index.
Iberdrola Renovables, which listed in December, has been one of the worst IBEX-35 performers so far this year, while Iberdrola shares have been supported by merger-and-acquisition speculation after Electricite de France (1024251.FR) said earlier this year it may bid for the company.
Iberdrola reported that first-quarter earnings before interest, tax, depreciation and amortization, or Ebitda, rose 65%. It didn't provide the full number.
The company also said it has already started the divestments set in its 2008-2010 strategic plan - including assets worth some EUR3 billion - and is securing higher capital gains than it expected.