Iberdrola beats its investment record in 2023
The company contributes 9.3 billion in taxes to the public coffers, Spain being the country with the highest tax burden
- A model resilient to the economic context
- Asset rotation plan
- Involvement with society
- Increased financial strength
- Outlook for 2024
Growth based on new investments: EBITDA of 14,417 million, up 9%.
- - Record network assets: 42.21 billion euros (+8%) in 1.3 million km of network and thousands of substations
- - Renewable capacity of 42,187 MW: additional 3,250 MW with associated total investment of 5 billion (60% in offshore wind and hydro)
- - Investments of 11,382 million euros, for a total of more than 33,500 million euros in the last 3 years.
- - Renewables: The company has been awarded 2,094 MW in the last auction in the UK: 1,372 MW of offshore wind, 396 MW of onshore wind and 326 MW of solar PV. This will involve an investment of £3.7 billion (EUR 4.4 billion).
- - Networks: new regulatory frameworks in the US, UK and Brazil
- - Completed installation of the Saint Brieuc offshore wind farm (France) and start of production at Vineyard Wind (first in the US).
- - Investments of more than 2,300 million euros in Spain (7,600 million in the last 3 years).
Strong boost to the social dividend
- - Emissions stand at 55 grams per kWh in Europe, 80% less than the industry average
- - 4,700 new recruits to the workforce, which now totals 42,300 people
- - Purchases of goods and services totalling 18,111 million from thousands of suppliers which, as a result of the increase in recent years, employ around 500,000 people
- - 9.3 billion contributed to public coffers worldwide, an increase of 24%, equivalent to more than 25 million euros per day.
- - 3.482 billion tax contribution in Spain (+35%)
- - The amount paid in taxes in Spain is higher than all the company's personnel, maintenance, operating and financial expenses in the country.
- - 385 million allocated to R&D&I: Iberdrola, the private electricity company that invests most in innovation in the world, according to the European Commission.
- - Year of environmental, social and governance (ESG) awards
- - Top score (CDP), in the top 5% of the most sustainable companies (S&P), ESG leadership award (Foreign Policy Association), award for best corporate governance (World Finance).
Improvement in the commercial market
- - Iberdrola, European leader in contracts with industrial customers (PPAs): almost 1,000 MW signed in 2023
- - Improved market share in the Iberian Peninsula, with 8.3 million customers and around 3 contracts per customer
Asset rotation plan already completed:
- - Mexico operation:
- - All approvals received, collection expected on 26 February.
- - The transaction will involve around USD 6 billion for the sale of 55% of the business in the country, mainly gas-fired plants
- - Iberdrola retains 45% of its business (renewables and industrial customers) and all the growth potential in renewables, with a portfolio of more than 6,000 MW of wind and solar energy
- - Co-investment alliances: In 2023, 2.2 billion have been co-invested with partners such as Norges Bank, Masdar, GIC...
Increasing solidity: Cash generation reaches 11,096 million (+8%)
- - 14,705 million obtained from new financing: 91% with ESG criteria.
- - Taking into account the Mexico transaction, debt falls to between 42,000 million and 42,500 million, and the cash generation to debt ratio improves to 25.8%.
Proposed dividend charged to 2023: EUR 0.55, up 10.8%.
- - On 31 January, an interim dividend of EUR 0.202 per share was paid.
- - New investment record: 12 billion euros
- - Growth in networks: new frameworks in the US, UK and Brazil
- - 2,000 new MW onshore renewables, to be joined by offshore wind projects currently under construction
- - 100% of power already sold at assured prices
- - Dividend to grow in line with net profit
Next investor day: 21 March
Click here to watch the webcast of the Results Presentation
Iberdrola, which today presented its results to the Spanish National Securities Market Commission (CNMV), remains firm in its commitment to the decarbonisation of the planet and the growth of the economy. During 2023, the company has accelerated its investments to reach the record figure of 11,382 million euros in 2023, an increase of 6%. In Spain, it has invested more than 2,300 million euros. In the last three years, the group has invested more than 33,500 million euros in all geographies, of which 7,600 million were in Spain.
Driven by this investment effort, the group's net profit has reached 4,803 million euros in 2023. For its part, the group's gross operating profit (Ebitda) amounted to 14,417 million euros, 9% higher than in 2022.
The company has reached 150,000 million euros in assets and has a capitalisation of around 70,000 million euros, making it the largest utility in Europe and the second largest in the world.
Iberdrola's Chairman, Ignacio Galán, said: "In a year of macroeconomic uncertainty, we have once again maintained our historic track record of meeting targets, thanks to an integrated business model and our strategy focused on investment and growth in stable markets. After a year of record investments, we have further consolidated our financial strength and will continue to invest significantly in the energy transition in 2024. The new grid investment frameworks and our offshore wind projects under construction will help us deliver solid and profitable growth for the year."
A model resilient to the economic context
As a result of the investment, the group has closed 2023 with an installed renewable capacity of 42,187 MW worldwide and consolidates its installed capacity as one of the cleanest in the world, as more than 80% is emission-free. Iberdrola has added 3,250 MW of renewable capacity to its portfolio, involving an investment of 5,000 million euros, 60% in offshore wind and hydroelectric power. Renewable projects include the completion of the installation of the Saint Brieuc offshore wind farm (France) with 496 MW and the start of production at Vineyard Wind, the first large-scale offshore wind farm in the US with 806 MW.
Meanwhile, the network asset base has increased by 8% to EUR 42.21 billion. The company already has 1.3 million kilometres of power lines and thousands of substations around the world and will continue to invest in regions with new regulatory frameworks such as the United States, the United Kingdom and Brazil.
In addition, the group has managed to lead the PPA market in Europe, with almost 1,000 MW signed in 2023 and improve its market share in the Iberian Peninsula, with 8.3 million customers and around 3 contracts per customer.
Asset rotation plan
The company has now completed its asset rotation plan and alliances for 2025, which has allowed it to strengthen its balance sheet and maximise access to new growth opportunities. In fact, it has received all the approvals for the sale of 55% of the business in Mexico, mainly gas plants, which has allowed it to obtain around 6,000 million dollars (around 5,600 million euros). The payment is expected to be collected on 26 February. Iberdrola thus maintains 45% of the business and all the growth potential in renewables, with a portfolio of more than 6,000 MW of wind and solar power.
In addition, in recent months the company has signed co-investment alliances with strategic partners such as Norges Bank, Masdar and GIC, which have co-invested 2,200 million euros.
Involvement with society
True to its commitment to society and the environment, the group continued to reduce its emissions to just 55 grams CO2/kWh in Europe, nearly 80% lower than its peers.
In addition, it has continued to increase its purchases, reaching 18,111 million euros from its thousands of suppliers, giving visibility and certainty to a supply chain that supports nearly 500,000 jobs worldwide.
It has also made 4,700 new hires in 2023 worldwide, bringing the company's workforce to 42,300.
In terms of tax contributions, in 2023 the group contributed a historic €9.3 billion to the public coffers of the various countries in which it operates, 24% more than the previous year. Of this figure, almost €3.5 billion went to Spain - specifically €3,482 million - 35% more than in 2022. The tax payment in Spain is higher than all of the company's personnel, maintenance, operating and financial expenses in the country.
The company has also earmarked 385 million euros for investment in R&D&I, making it the private electricity company that invests the most in innovation in the world, according to the European Commission.
This involvement with society has earned the company numerous environmental, social and governance (ESG) awards, such as the highest score in the CDP world index, being in the top 5% of the most sustainable companies (S&P), the ESG leadership award (Foreign Policy Association) and the award for best corporate governance (World Finance), among others.
In view of these results, the Board will propose to the General Shareholders' Meeting a supplementary remuneration of 0.348 euros gross per share, to which must be added the interim dividend of 0.202 euros gross per share paid in January, benefiting hundreds of thousands of savers who invest in Iberdrola. Thus, the company will pay out 0.550 euros per share against 2023 results, an increase of 10.8%.
Increased financial strength
Iberdrola has increased its operating cash flow by 8% to 11,096 million euros and has continued to strengthen its balance sheet with more than 14,700 million euros of new financing at competitive market conditions. Of this amount, EUR 13,300 million met ESG (environmental, social and governance) criteria.
Taking into account the closing of the Mexico transaction, net debt fell to between EUR 42,000 million and EUR 42,500 million and the cash generation to net debt ratio improved to 25.8%.
The group's liquidity stands at EUR 20.9 billion, which would allow it to cover 27 months of financing needs without resorting to the market, and the average maturity of its debt is close to 6 years.
Outlook for 2024
To continue leading the energy transition, the company has committed to invest 12,000 million euros by 2024, which will allow it to increase its installed onshore renewable capacity by 2,000 MW, to which will be added the contribution of new offshore wind projects currently under construction. In addition, the company will continue to invest in grids, with new regulatory frameworks in the United States, the United Kingdom and Brazil, and has already closed the sale of 100% of its energy for this financial year.
The company expects net profit growth of 5-7%, excluding capital gains from asset rotation, and the dividend is expected to increase in line with results.
The company will provide more details of its outlook for the coming years on 21 March in London, where it will hold its Capital Markets Day.
