Iberdrola's good results abroad allow it to maintain prices for Spanish consumers without making profits in Spain that have fallen out of the sky

Iberdrola continued in 2021 to reaffirm its role as a driver of economic and employment growth in the countries in which it operates. The company invested a record 9,940 million euros in 2021, 3% more than the previous year. This investment effort has focused on the smart grid business (45% of the total) and renewables (44%) to accelerate the energy transition and the decarbonisation of the planet.

According to Iberdrola sources, "our strong investments abroad have enabled us to achieve excellent results that have allowed us to maintain prices for non-regulated Spanish consumers and not pass on the international increase to them, demonstrating that we have not had any extraordinary profits falling from the sky in Spain at any time".

The United States (2,736 million euros) and Spain (2,386 million) account for more than half of the investment. It is also worth highlighting its commitment to Brazil, where it has allocated 1,892 million euros, as well as to other countries, mainly in Europe, with 1,566 million euros.

Thanks to investments and international expansion, net profit has grown to 3,885 million euros, an increase of 8% in 2021. The positive growth in the United States and Brazil has offset the negative performance of the generation and customer business, affected by high energy prices in Spain and the United Kingdom.

The good results in 2021 and the future outlook for the renewable business allow Iberdrola to reaffirm its growth forecasts for 2022, a year in which it expects to achieve a profit of between 4,000 and 4,200 million euros.

Iberdrola's Chairman, Ignacio Galán, stated that "the acceleration of investments allows us to grow at a higher rate than expected. These results reflect the success of a sustainable model and encourage us to continue working towards a low-carbon economy".

The company has earmarked more than 4.3 billion euros of investments in renewables. This investment drive has enabled the group to install 3,500 new renewable megawatts (MW) in the last 12 months and to reach 38,000 MW of renewable capacity worldwide. Capacity under construction exceeds 7,800 MW, of which 2,600 MW is offshore wind.

More than EUR 4.4 billion of investment has been allocated to smart grids, representing a 23% growth compared to the same period last year, in line with the group's strategy of strengthening a key infrastructure for the energy transition and the electrification of the economy. As a result, the company now has EUR 33,000 million in regulated assets.

The investment effort and operating performance have boosted gross operating profit (Ebitda) to 12,006 million euros in 2021, which represents a growth of 20% compared to the previous year. With this figure, the company brings forward its gross profit estimate for 2022 by one year.

The networks business has shown a solid performance in all countries thanks to the regulatory frameworks in place and higher investments, despite the negative impacts of the exchange rate and COVID. 

The electricity production and customers business was driven by the increase in installed renewable capacity, which led to a 7.9% increase in production, with a significant contribution from offshore technology due to the entry into operation of East Anglia 1.

During the year, offshore wind was confirmed as one of the group's growth vectors: it has 1,258 MW installed and will triple with the construction of 2,600 MW by 2025. The current portfolio of this technology totals 33,400 MW.

Iberdrola continues to strengthen its commitment to environmental, social and governance (ESG) principles, which form the basis of its business model. A pioneer in the energy transition, the company is a benchmark in good governance and transparency and a driver of social transformation.

The group has already closed all its coal-fired power plants around the world in response to its decision to replace CO2-emitting facilities with the latest generation of clean energy. The symbol of this commitment was the demolition in 2021 of the chimney of the largest coal-fired power station in Europe, Longannet (Scotland).

Thanks to this commitment and the growing share of renewables in the generation mix, emissions intensity has been reduced to 60 grams per kWh in Europe, advancing towards the goal of becoming an emission-neutral company in Europe by 2030.

As a result of this evolution and the company's continued focus on good corporate governance, in 2021 the company obtained numerous awards related to this area, such as the Corporate Governance Awards by World Finance in the United States and Spain.

In addition, Iberdrola remains a benchmark in the creation of stable, quality employment. The company has made 5,500 new hires in the last 12 months, with a clear commitment to youth employment, as 40% have been made to people under 30 years of age. And the number of women in positions of responsibility continues to increase, reaching 34%.

It is worth noting that 99% of the company's workforce has permanent contracts. In addition, the company has dedicated an average of 59 hours of training per year to its employees.

"Twenty years ago, Iberdrola took on the challenge of decarbonising the planet through clean energy. Many have joined this global challenge with words, but the important thing is to commit to it with actions. With ambition, but also with realism and credibility, and at Iberdrola we are going to continue along this path", said the chairman.

The growth in results allows Iberdrola to propose a shareholder remuneration of 0.44 euros per share, which is 5% more than in 2021. The Board of Directors will propose at the General Shareholders' Meeting the approval of a final dividend distribution of 0.27 euros per share, which will be added to the 0.17 euros per share paid as an interim dividend in February.

The company has also improved its financial strength over the past year thanks to cash flow generation, which has grown by 9% to 8,914 million euros. In 2021, the company has once again reaffirmed its leadership in green finance, with 38.8 billion euros available under green or sustainable formats.  In addition, the company has more than 70% of revenues generated in countries with an A credit rating.

Liquidity stands at 19.5 billion euros, covering 24 months of financing needs, and the company demonstrated its ability to access markets. In an inflationary context, the company has 80% of its debt financed at a fixed rate and an average maturity of over 6 years.