News

2023-10-26 08:20:00.0

Iberdrola invests €11 billion and net profit reaches €3.64 billion, up 17%

Ignacio Galán investment results presentation events

“The execution of the strategy presented last November is allowing us to grow, preserve financial strength and increase dividends.” 

Ignacio Galán, Executive Chairman of Iberdrola

  • You can follow the broadcast here.
  • Interim dividend up 11% to 0.20 euros per share
  • Raising full year outlook to double-digit growth in net profit (excluding additional capital gains from asset rotation)
  • Financial strength: operating cash flow and asset rotation will allow the company to maintain Net Debt at 2022 levels
  • Liquidity of €20.2 bn, sufficient to cover 21 months of financial needs
Investments reach €11 billion in the last 12 months 
  • Networks assets base continues to grow in all geographies, reaching €41.3 billion euros.
  • Renewable capacity at 41,300 MW, with 3,100 MW of new renewable capacity added in the last 12 months.
Net profit up 17% to €3.64 billion
  • EBITDA reaches €10.8 billion (+13%), driven by positive tariff adjustments in the networks business and improvement in renewable output and margins in the EU. 
  • Net profit increases +17% or +22% excluding a non-cash exceptional item related to Mexico transaction.
Dividend
  • Following the evolution of the year, the Board of Directors has approved a 2023 interim shareholder remuneration of Eur 0.20/share (+11%).
FY 2023 Net profit outlook raised to double-digit growth
  • The company is now forecasting double-digit net profit growth (excluding additional capital gains from asset rotation).
  • By year end, total assets expected to reach 150 billion euros and Net Debt to remain at level similar to 2022 (42-43 billion euros).
Reinforcing financial strength
  • Operating cash flow (FFO) reaches €11.1 billion in the last 12 months.
  • Improving ratios: FFO/Adjusted Net Debt of 23.2%
Strategic Plan Delivery

Growth based on Networks, with regulatory frameworks covering 96% of asset base closed to 2025 

  • 85% of supply chain agreements already in place to cover networks investment through to the end of 2025 (100% in Transmission investment). 

Renewable capacity up 3,100 MW in the last 12 months with close to 8,000 MW under construction 

  • 100% of supply chain contracts signed for projects with FID in place, and framework agreements secured for all other capacity additions for 2025.

Offshore wind growth secured: 3,500 MW in construction that will represent more than 10 billion euros in investments

  • Offshore wind capacity will reach 3,100 MW by 2025 and 4,800 MW in 2026/27.
  • All projects are being delivered on schedule, with supply chain fully secured, and 100% of the energy to be produced is secured under CfDs or sold through PPAs for 15-20 years. 
  • EBITDA contribution from offshore wind will reach €1.9 billion from 2026/27 vs 700m in 2022.
  • Mature pipeline of projects secured at competitive costs (€60/kW) to provide opportunities beyond 2027: 3,600 MW consented in the UK and US plus 8,000 MW of seabed rights.

Leaders in hydro pump storage, key technology in the energy transition: 100 million kWh of capacity

  • 20 million kWh of additional capacity under construction.

€7.5 billion asset rotation and partnership plan to 2025 completed, reinforcing balance sheet and maximizing access to growth opportunities

Capital Markets Day
  • The Group’s next Capital Markets Day will be held in March 2024.