News

Investment grows 13.4% to €1.016 billion

2017-04-26 00:00:00.0

Iberdrola posts first quarter net profit of €828 million

Ignacio Galán, Día del Accionista de Iberdrola

El resultado bruto de explotación (Ebitda) alcanza los 1.862 millones de euros, impulsado por la contribución del negocio de redes, principalmente de Estados Unidos, y afectado por la marcha negativa del negocio liberalizado de Reino Unido y España. La evolución esperada durante el resto del ejercicio permite mantener las previsiones de crecimiento para el presente año

La inversión, que supera los 1.000 millones de euros en el periodo, se destina en un 93% a los negocios de redes, renovables y generación contratada

La compañía cuenta con cerca de 6.500 MW en construcción en energías renovables y generación contratada, lo que permitirá poner en marcha más de 2.000 MW durante 2017

La filial americana de Iberdrola en Estados Unidos (AVANGRID), que cotiza en la Bolsa de Nueva York y de la que el grupo tiene un 81,5%, mantiene su fortaleza operativa y aumenta su beneficio neto un 13%, hasta los 239 millones de dólares. Gracias a su positiva evolución en bolsa en el año, la rentabilidad total al accionista (RTA) asciende al 17%, doblando la revalorización del índice de referencia S&P 500 Utilities

Tal y como se acordó en la pasada Junta General de Accionistas, el Consejo de Administración ha aprobado la ejecución, el próximo mes de julio, de una nueva edición del programa ‘Iberdrola Dividendo Flexible’, con un precio de compra garantizado de al menos 0,145 euros brutos por acción -un 16,9% más que en julio de 2016- a lo que se le añaden 0,03 euros brutos en efectivo, situándose la remuneración total al accionista en 0,175 euros brutos por título.

Con ello, la retribución anual con cargo a 2016 se sitúa en 0,31 euros brutos por acción, un aumento de cerca del 11% en relación con la del año anterior. La compañía está ejecutando el programa de recompra de acciones para su amortización, con objeto de mantener el número total de acciones de la sociedad en 6.240 millones, evitando así la dilución

El grupo está analizando un nuevo programa de remuneración al accionista, sujeto a su aprobación por la Junta General de Accionistas, que junto con la posibilidad de recibir acciones liberadas o vender los derechos de asignación gratuita en el mercado, ofrecerá la opción de cobrar un dividendo en efectivo, en sustitución de la venta de derechos a Iberdrola a un precio fijo garantizado

La fusión Gamesa-Siemens, efectiva desde el pasado 3 de abril, ha dado lugar a la creación de un líder mundial en la industria de generación eólica con sede en España, con más de 11.000 millones de euros de volumen de ventas, un beneficio operativo de 1.100 millones de euros y 26.000 empleados. Iberdrola, que ha contribuido a la creación del mayor fabricante de aerogeneradores del mundo y continuará apoyándole como socio relevante, tiene en la actualidad un 8,1% del capital de la sociedad que cotiza en las Bolsas de Valores españolas y capitaliza 13.000 millones de euros

Iberdrola posted net profit of €827.6 million in the first quarter of 2017, (4.7% down on the same period last year).

Net operating profit (Ebitda) attained €1.86 billion (-8.2%). The company expects to offset lower figures reported in the first quarter as the year progresses, in line with estimates.

In particular, Ebitda was supported by the networks business performance whose contribution rose by 9.1% to €1.02 billion, benefiting from US operations. Balance sheet was affected by lower rain and wind resource during the quarter, by increased taxes in Spain and the poor performance of liberalised business in the UK.

Iberdrola continued making progress towards delivering its 2016-2020 Outlook. Throughout the quarter, investment grew by 13.4% to €1.02 billion. Of that amount, 93% was allocated to renewables (46%), networks (37%) and contracted generation (10%). As a result of its investment strength, the company plans to commission a total 2,011 megawatts (MW) in renewables and regulated generation in 2017.

Also, the group currently has a project pipeline of 6,500 MW scheduled to be commissioned by 2020, out of which 3,527 MW are contracted generation; 1,546 MW onshore wind power; 1,064 MW offshore wind, and 336 MW photovoltaic solar projects.

The main business highlights between January and March include: in networks, progress on the subsea cable between Wales and Scotland; and, in the renewables area, installation of all jackets plus 12 turbines at Wikinger offshore wind farm and commissioning of new onshore wind facilities in the UK, US and Brazil.

In the contracted generation business, Baja California III CCGT plant was commissioned and the company was awarded the Topolobambo III combined-cycle plant, which will see Iberdrola’s installed capacity in Mexico jump to 10,000 MW by 2020.

One of the highlights of the period was good performance at NYSE-listed US affiliate AVANGRID, of which the company owns an 81.5% stake, with net profit at $239 million, up by 13%. Positive stock market performance in the past twelve months brings total shareholder remuneration to 17%, doubling the appreciation of S&P 500 Utilities benchmark

Gross margin was €3.566 billion (-2.3%), with revenue rising 1.3% to €8.29 billion However, production costs have risen, subsequently increasing provisions.

Levies and taxes were also higher (+10.5%), at €763.9 million, mainly as a result of higher generating taxation in Spain linked to higher energy retail prices, and increased nuclear output.

Funds from operations stood at €1.65 billion (-2.4%), rising above total investment figures.

Results by business

The networks business performed well in the first quarter of 2017, with Ebitda of €1.02 billion, up 9.1% year on year. It was supported by progress at US businesses (up 46.9% to $335.4 million) and in Brazil (up 6.7% to R$235.8 million).

Lower rain and higher taxation in Spain as well as poorer operating performance in the UK resulted in an Ebitda for generation and retail of €436.3 million, 32% down year on year. Iberdrola expects the business to recover as the year progresses. Nevertheless, quarterly Ebitda for generation under long-term contract in Mexico rose 25.4% to US$141.9 million.

Renewables Ebitda was €434 million (-5%). The first three months of the year have seen reduced wind availability in Spain, which makes for 34% of overall figures. However, business progressed well in the UK, US and Latin America, where renewables Ebitda rose 7.2%, 2.8% and 18.9% respectively, vis-à-vis an exceptional 2016.

Iberdrola confirms 2017 outlook

Business performance expected for the rest of the year allows the group to confirm growth outlook for the group with improved operating results in the networks, renewables and contracted generation areas.

To make this forecast, Iberdrola has taken into account a range of positive impact which will materialise over the coming months:

Networks: tariff review in the US and in Brazil for Neoenergia’s Coelba, Cosern and Celpe affiliates – where Iberdrola holds a 39% stake.
Renewables: over the upcoming quarters some 1,400 MW of new capacity will be commissioned and wind conditions are expected to normalise.
Contracted Generation (Mexico): the Federal Electricity Commission (CFE) has revised tariffs and Iberdrola will install a further 129 MW.
Generation and Retail: both output alongside results from the UK energy retail business are expected to rebalance compared to 2016.
Additional measures: best practices will be implemented in the US, known as Forward 2020 plan, and improved efficiency in the UK.

Shareholder remuneration

Yesterday, the Board of Directors approved a new edition of Iberdrola Flexible Dividend programme beginning in July, following the decision at the General Shareholders Meeting held in Bilbao on 31 March.

In this instance, shareholder remuneration will amount to, at least, €0.145 gross per share for shareholders opting to sell their allocation rights to the company – up 16.9% on July 2016 – in addition to €0.03 gross per share to be paid in cash.

All in all, shareholder remuneration will reach €0.175 gross per share. If the €0.135 gross per share paid last February is added, total shareholder remuneration against 2016 earnings stands at €0.31 gross per share, up nearly 11% year on year.

The company is implementing its treasury buy-back scheme for subsequent amortisation, so that the number of shares in the company remains at 6,240 million, thus avoiding dilution derived from the Iberdrola Flexible Dividend programme.

Also, Iberdrola is analysing a new remuneration programme to be enacted if approved by the General Shareholders Meeting.

This new Iberdrola Flexible Dividend will continue to offer a choice between receiving new group shares free of charge or payment in cash. Under the second option, Iberdrola shareholders are entitled to sell their free subscription rights on the market or receive a cash dividend, in lieu of selling their rights to the company at a fixed, guaranteed price.

Access to legal information

IMPORTANT INFORMATION

This document does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities in the United States of America or in any other jurisdiction. Iberdrola, S.A. shares may not be offered or sold in the United States of America, except pursuant to an effective registration statement under the Securities Act of 1933 or pursuant to a valid exemption from registration.

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking information and statements about Iberdrola, S.A and AVANGRID, Inc. These forward looking statements relate to financial projections and estimates and their underlying assumptions, statements regarding plans, targets and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates” and similar expressions.

Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, Iberdrola, S.A. and AVANGRID, Inc. investors and shareholders are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Iberdrola, S.A. and AVANGRID, Inc. that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public documents filed by Iberdrola, S.A. with the Comisión Nacional del Mercado de Valores (the Spanish securities regulator, or the CNMV for its initials in Spanish) and by AVANGRID, Inc. to the Securities and Exchange Commission and are accessible to the public.

The forward-looking statements are no guarantee whatsoever of future results and have not been reviewed by the auditors of Iberdrola, S.A and AVANGRID, Inc. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to or issued by Iberdrola, S.A., AVANGRID, Inc. or any of its directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements or representations included herein are based on information available at the time of this communication. Except as required by applicable law, IBERDROLA, S.A. does not undertake any obligation to publicly update or revise any forward-looking statements, even in the event of new information being published or new events occurring.