Iberdrola reduces its net profit in Spain by 14%

Iberdrola continues to advance in its commitment to energy self-sufficiency and its proactive role in alleviating the energy crisis in families and industries. Thanks to a resilient model, good international results and investments of 10,500 million euros in the last twelve months, the company has obtained a net profit of 3,104 million euros, as reported to the National Securities Market Commission (CNMV).

The strong growth in all international geographic areas has offset the adverse result of Iberdrola Spain, which recorded a 14% drop in net profit, impacted by regulatory and fiscal measures and high gas and electricity prices, which have not been passed on to customers with previously agreed fixed prices.

Meanwhile, gross operating profit (Ebitda) rose 17% in the first nine months to 9.529 billion euros.

"We continue to contribute to a more self-sufficient, sustainable and competitive energy system. Accelerating investment in electrification will allow us to be less dependent on the volatility of oil and gas and generate more growth and employment, as these results show", said Iberdrola's Chairman, Ignacio Galán.

In this commitment to energy independence, Iberdrola has invested 7,600 million euros in the first nine months, which is 14% more than the same period last year. Of this amount, 90% has been allocated to renewables and smart grids to accelerate the energy transition and reduce fossil fuels. Thus, it has already invested 10,500 million in the last year, of which the company has allocated 75% of the investment to international markets, mainly the United States.

Thus, the group strengthens its renewable leadership by exceeding 39,000 MW of green capacity worldwide.

Thanks to this new installed capacity and good operating performance, wind and solar production increased by 13%, boosting total renewable production to 55,354 GWh, which has offset the lower hydroelectric production due to the drought.

In recent months, Iberdrola has strengthened its growth plan with several alliances that have enabled it to increase its renewable commitment, such as the one with EIP in Wikinger to boost its offshore wind portfolio, the agreement with Sempra in the United States to develop green hydrogen, the alliance with BP to develop 11,000 recharging points in Spain and Portugal and the agreement with Shell to promote floating offshore wind energy in the United Kingdom.

In this context of crisis, Iberdrola has sought to deepen its proactive attitude towards families and industries. The company has kept customer prices stable, at levels well below those of the regulated electricity market, thanks to its renewable and zero-emission generation. Moreover, it has promoted specific measures for vulnerable customers and payment facilities, and has launched several initiatives to encourage energy efficiency and savings.

In the last 12 months, Iberdrola has contributed more than 7,800 million euros to the public coffers, and has made 4,700 additions. Thanks to the more than 15,000 million euros in purchases it has made, the company supports 400,000 jobs worldwide -85,000 in Spain-.

Moreover, its geographical diversification is allowing it to benefit from the appreciation of currencies, especially the dollar.

The company focuses its growth on network assets and long-term contracts, which protects it from a negative evolution of demand or inflation. Iberdrola has already sold 100% of its energy for this year, 90% of its production in 2023, 70% in 2024 and 50% in 2025.

In addition, 100% of supply purchases are secured for this year and 90% for 2023, thus avoiding the current tensions of raw materials and exchange rates. 

The company has 75% of its debt at a fixed rate, which allows it to face the new interest rate environment.  

The 28% growth in cash flow, to 8,200 million euros at the end of September, has also enabled the company to increase its financial strength. 

Iberdrola has liquidity of more than 24,000 million euros, which would allow it to cover its financial needs without having to go to the market for 27 months.

The company has reiterated its net profit forecast for this year, between 4,000 and 4,200 million euros, and has announced that the final dividend will be 0.18 euros per share, which represents an increase of 5.9% compared to the same period last year. The payment of this remuneration, which will be made under the 'Iberdrola Flexible Remuneration' programme, is scheduled for next January.

On 9 November, Iberdrola will present its Capital Markets Day to investors, where it will give more details of its new projects and prospects for 2022-2025.