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Europe Needs to Speed Up Energy Independence Path, Galan Says

Europe Needs to Speed Up Energy Independence Path, Galan Says

Soaring costs for energy underline the need for Europe to accelerate the path to self-sufficiency, Iberdrola SA’s Chief Executive Officer Ignacio Galan said on Wednesday. 

Russia’s war in Ukraine is forcing a major rethink on where the region sources its energy supplies. The crisis worsened Wednesday as the top natural gas exporter said it had started to cut off supplies to Poland and Bulgaria. 

“The current crisis demonstrates the need to accelerate the energy transition to achieve energy self-sufficiency in Europe and decarbonize our economy,” Galan said. “To achieve this, solutions based on the European framework and a continuous dialogue between market players and administrations are needed.” 

Iberdrola SA’s profit rose 5%, slightly beating estimates as its international divisions countered a drop in its home market caused by high energy prices. 

Earnings before interest, taxes, depreciation and amortization increased to 2.95 billion euros ($3.14 billion) in the first quarter, compared with the average analyst estimate of 2.93 billion euros. Iberdrola’s outlook for full-year net profit remained unchanged. 

Europe’s biggest utility by market capitalization is boosting spending on solar and wind plants, both by building new capacity and acquiring projects. Iberdrola seeks to become one of the world’s biggest renewable energy companies, and more than 2.1 billion euros were invested in the first quarter, according to a statement on Wednesday.

The firm maintained its guidance for net income of 4 billion euros to 4.2 billion euros this year, up from 3.88 billion euros in 2021.

©2022 Bloomberg L.P.