News
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22/10/2020Iberdrola takes part in the New York wind power auction with its Liberty Wind offshore project Iberdrola, through Vineyard Wind, has taken part with its Liberty Wind project in the second auction of wind power held by New York State. Specifically, this development would entail putting into operation a total capacity of up to 1,300 megawatts (MW), which could supply clean energy to around 700,000 New York homes and businesses. The proposal presented by the company to develop Liberty Wind offers six options for the development of this large facility. One of them, as it has been proposed, would represent the greatest commitment of direct economic benefit that has ever been considered in the US offshore wind sector. In this way, Liberty Wind would help reinforce New York’s leadership in creating green jobs and equal opportunities. Along these lines, the recent request for proposals by the New York State Energy Research and Development Authority (NYSERDA) is part of the state’s general effort to achieve 9,000 MW of offshore wind power generation by 2035. “We are pleased to bring Liberty Wind closer to New York legislators and look forward to building on broad community participation that is the hallmark of our US offshore wind business”, said Lars T. Petersen, CEO of Vineyard Wind. “As pioneers of offshore wind power in the country, we believe that setting positive precedents for development will bring new and better standards to the entire industry - standards that ensure that local communities receive the greatest possible benefits with minimal impacts", he added. Iberdrola, aiming for world leadership in offshore wind power Iberdrola continues to advance towards global leadership in offshore wind energy, keeping ahead of the game as it did with onshore wind power 20 years ago. The group, led by Ignacio Galán has a portfolio of some 13,000 MW in offshore rights, to which are added the 9,000 MW of options in Sweden. As of the end of the third quarter of 2020, the company has added 14,000 new MW to its portfolio - of which approximately 90% is offshore wind - which now exceeds more than 70,000 MW globally. At the end of September, Iberdrola had an installed capacity of this technology of 1,258 MW, with facilities such as East Anglia ONE , in the United Kingdom, and Wikinger , in German waters of the Baltic Sea. In the United States, the group, through Vineyard Wind, is making progress with the Vineyard Wind ONE marine farms (800 MW of capacity off the coast of the state of Massachusetts), Park City Wind (also in Massachusetts waters and with a capacity of 804 MW), and Kitty Hawk (Virginia), at a more preliminary phase. READ MORE
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21/10/2020Iberdrola increases investments by 23% to €6.64 billion as of September, with net profit up 5% to €2.68 billion Iberdrola increased its net profit by 4.7% to €2.68 billion in the first nine months of the year and maintained an increased rate of investment, reaching €6.64 billion, a record figure and 23% more than the same period last year, reinforcing its commitment to economic recovery and job creation in a complex global environment. These investments allowed the group to add 4,600 new megawatts (MW) in the last year, of which 1,300 MW have been installed in the third quarter of 2020, and to continue progressing in the construction of 7,600 MW. At the end of September 2020, the company added 14,000 MW to its pipeline - approximately 90% of which is offshore wind - which already exceeds 70,000 MW worldwide. Iberdrola continues to drive investments that activate the green recovery which focus on renewables, grids, high-capacity storage and new technologies such as green hydrogen for decarbonising industry. In line with this strategy, investments in renewables grew by 52% as of September and represent 54% of the total invested in the period, while those for networks increased by 5.5% and account for 38% of the total. Likewise, Iberdrola has reaffirmed its commitment to reach the €10 billion of investment planned for the year, despite the impact of COVID-19. During the presentation of the results for the first nine months of the year, Ignacio Galán, the Group's Chairman, explained that "despite the difficult environment in which we operate, the acceleration of our investments is opening up enable us to continue being a key driver of economic recovery and job creation, while improving our financial results.” Operating efficiency and financial strength At September, adjusted gross operating profit (EBITDA) rose by 3.2% to €7.56 billion. The performance of the business, which includes the COVID impact of €216 million, was supported by the increase in the installed renewable capacity and the operational performance of the renewables business and the generation and supply business. After eliminating extraordinary items from the period in 2019 and 2020, EBITDA amounted to €7.35 billion, a 2% reduction. By business, EBITDA in renewables increased by 5.6% to €1.77 billion, driven mainly by the United Kingdom and the United States, as well as an increase in operating capacity of 7.4% to 29,175 MW and total installed capacity to 33,701 MW. The generation and supply business showed growth of 10.3% and achieved EBITDA of €2 billion. Networks, for its part, impacted by COVID-19 and weather events in the United States, saw a reduction in EBITDA of 10.7%, to €3.52 billion. The company's activity during the period was impacted by COVID-19, representing €203 million in terms of net profit, on account of the effect on demand and provisions for insolvencies. The evolution in the last quarter, however, shows a progressive normalization of energy demand and prices in Spain and the United Kingdom, while countries such as the United States and Brazil are making progress in implementing regulatory recovery measures. Iberdrola’s net profit rose by 4.7% to €2.68 billion. Discounting the non-recurring factors over the period, both in 2019 and 2020, the company's adjusted net profit would stand at €2.55 billion, up 8.8%. During the period, Iberdrola continued to improve its efficiency, with a 1.8% reduction in net operating expenses. Cash flow generation rose by 2.3% to €5.96 billion at the end of September, improving solvency ratios. The group's liquidity exceeds €13.8 billion, covering 30 months of financial needs. Maintains commitments: results and shareholder remuneration The increase in investments, the operational performance of the businesses and the diversification of the model allows Iberdrola to maintain its net profit forecast for the end of 2020, with an estimated medium/high single-digit growth. Iberdrola is also maintaining its shareholder remuneration policy, with the launch of a new edition of the 'Iberdrola Flexible Remuneration' program, through which it will distribute an interim dividend of at least €0.168 gross per share for 2020. The final amount is expected to be paid out in February 2021. Reinforcement in core markets and new growth platforms During the year, Iberdrola has strengthened its position in the main markets where it operates and has sought new opportunities in markets with renewable energy growth prospects, adding to its pipeline of medium and long-term projects. Thus, along with the corporate operation in United State announced today, with the acquisition of PNM Resources in the states of New Mexico and Texas, over the past nine months the group has carried out a further seven corporate acquisitions. This includes Australia, with the incorporation of Infigen; Japan, with a 3.3-GW offshore pipeline, following the acquisition of the local developer Acacia Renewables; and in Sweden, with the agreement with Svea Vind Offshore AB (SVO) for the potential development of up to 9 GW of offshore wind. It also reinforced its presence in core countries, such as France, with the purchase of the French company Aalto Power - 118 MW of operational wind power and a 636-MW pipeline in different stages of development - and the acquisition of 100% of the Saint Brieuc offshore wind farm. In Scotland the company acquired two onshore wind power projects with 165-MW capacity, and in Brazil Iberdrola completed the acquisition of a wind power project pipeline of 400 MW capacity. The transition to a decarbonized and electrified economy has widespread support. This is demonstrated by recently announced strategic plans, and the review of environmental objectives in the main countries where the company operates. Recently, the European Union announced more ambitious climate objectives, with a target of reducing emissions by 55% by 2030 - and increased renewables targets that include 40 GW of green hydrogen by 2030. Similarly, Spain is working on structuring the European funds for recovery, in line with the green transition, which will see 37% of €72 billion allocated to clean energy, including a new green hydrogen strategy, with planned investments of €8.9 billion by 2030. The United Kingdom has also redoubled its commitment to offshore wind power and is targeting 40 GW by 2030; while the US states of New York, New Jersey and Virginia are preparing auctions for 4.9 GW of offshore wind power, Virginia aims to have 5.2 GW of this technology in the next few years. In the first nine months of the year, Iberdrola's global activity advances in terms of sustainability. Its CO2 emissions have been reduced by 10% compared to September 2019, to 98 gCO2/Kwh. Likewise, it has recruited 3,000 new employees during the year. The company has received numerous awards for diversity and inclusion in the period, with awards such as The Planet Mark in the United Kingdom. Iberdrola also occupies the fifth position in the global ranking of the most sustainably managed companies in the world, according to the first edition of the ranking prepared by the US newspaper 'The Wall Street Journal’ and together with the 'Just' recognition from Forbes for its commitment to the environment and the communities it serves in the US. READ MORE
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21/10/2020Iberdrola acquires PNM Resources in the US, the utility of New Mexico and Texas The board of directors of Avangrid Inc. has approved the acquisition of PNM by Avangrid. This friendly transaction, recommended by PNM’s board of directors, will be effected via merger. PNM’s shareholders will receive $4.3 Bn in cash. It implies an Enterprise Value of approximately $ 8.3 Bn considering a net debt plus other adjustments of approximately $4 Bn. The purchase price represents a premium of 10% over the PNM`s share price as of Tuesday 20th October and 19.3% over the average PNM share price during the 30 days prior to prior to Wednesday 21st October. The combination of Avangrid and PNM, with over 4.1 million points of supply, regulated asset base (RAB) of $14.4 Bn, more than 168,000 Km of networks and approximately 10.9 GW of installed capacity (as of 2019), will accelerate Iberdrola Group’s growth in the US. The agreement between Avangrid and PNM, is subject to approval by PNM shareholders. As PNM and its subsidiaries operate in a regulated sector, the relevant authorizations at state level (New Mexico Public Regulation Commission and Public Utility Commission of Texas) and Federal level (Federal Energy Regulatory Commission, Hart Scott Rodino Clearance, Committee on Foreign Investment in the United States, Federal Communications Commission and Nuclear Regulatory Commission) will be required. This process is expected to be completed in 2021. Ignacio Galán, Chairman & CEO of Iberdrola and Chairman of Avangrid said: "The operation aligns to the strategy we have followed for more than 20 years. Friendly transactions, focused on regulated businesses and renewable energy, in countries with good credit ratings and legal and regulatory stability, offering opportunities for future growth". Iberdrola currently owns 1,900 MW of renewable energy and a pipeline of 1,400 MW renewables assets in New Mexico and Texas. In addition, Iberdrola operates a retail business in Texas. For more than 15 years, Iberdrola has also funded the King Felipe VI Chair in the Department of Electrical and Computer Engineering at the University of New Mexico. Avangrid Avangrid, listed on the New York Stock Exchange, is a diversified energy and utility company with operations in 24 states in the United States that consolidates the U.S. energy operations of its parent, Iberdrola. In 2019, Avangrid had approximately 2.3 million electricity and 1.0 million gas points of supply. The company distributed a total of 36 gigawatt hours (GWh) of electricity and had an installed capacity of 8.1 gigawatts (GW). Avangrid has a Market Capitalization as of the 20th of October of approximately $16.8 Bn, an Enterprise Value of $25.7 Bn and EBITDA of $1.9 Bn as of 2019. PNM PNM Resources, listed on the New York Stock Exchange, is an energy holding company based in Albuquerque, N.M. In 2019, through its regulated utilities, PNM and TNMP, PNM Resources had 2.8 gigawatts (GW) of generation capacity, provided electricity to approximately 790,000 homes and businesses and distributed a total of 14.9 terawatt hours (TWh) in New Mexico and Texas. PNM has a Market Capitalization as of the 20th of October of approximately $3.9 Bn, an Enterprise Value of $7.5 Bn, and EBITDA of $586 MM as of 2019. Strategic fit The acquisition of PNM fits within Iberdrola’s strategy: * Growth in regulated utility business, primarily transmission and distribution, and renewables * Increase exposure in good rated countries (AAA) * Immediately accretive to earnings * Maintaining financial strength 1 2019 pro- forma data 2 Includes regulated generation that consist of both owned generation assets in rate base receiving a regulated return and contracted PPAs in rates approved by the public commission receiving a regulated cost pass through. READ MORE
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21/10/2020Iberdrola undertakes the largest issue in its history amounting to €3 billion Iberdrola has successfully, and in record time, completed the largest issue in its history, amounting to €3 billion. This is a hybrid bond, which is also the largest placement in this format performed by a utility on the Euromarket. The transaction was structured in two tranches, the first of which amounted to €1.6 billion, 1.874% coupon and perpetual maturity with a repurchase option from April 2026, and a second tranche amounting to €1.4 billion with 2.25% coupon and a repurchase option in April 2029. The combined demand for the transaction amounted to more than €7.5 billion (books oversubscribed 2.41 times), which allowed for a well-balanced transaction in amount and cost terms, with the participation of more than 263 investors from 27 countries. This, once again, demonstrated investors’ confidence in the group’s strategy. The funds obtained will be used to finance the group’s growth. The company has completed eight corporate operations during the year: the one announced today in the US is joined by seven others, allowing the company to position itself in markets with great renewable energy potential. During this period, Iberdrola entered the Australia market with the acquisition of Infigen, added an offshore wind portfolio of 12.3 GW in Japan and Sweden and strengthened its position in markets including France, the United Kingdom, Brazil and the United States. Group chairman Ignacio Galán stated today “despite the difficulties we are currently experiencing, the acceleration of our investments pushes us to remain a key driver of economic recovery and job creation, while improving our financial results”. Iberdrola will have the possibility to buy back the first and second tranches of this new hybrid bond in April 2026 and 2029, respectively, and thereafter on an annual basis in each case, coinciding with the coupon payment date. It is important to remember that hybrid bonds count as 50% capital according to the methodology used by the main rating agencies, thus this transaction also contributes to maintaining Iberdrola’s credit ratings. Today’s issue was placed with qualified investors and was handled by HSBC and BNP, which were the coordinating banks, and it also relied on the sales force and advice of Barclays, BofA Securities, Crédit Agricole CIB, J.P. Morgan, Mizuho, Morgan Stanley, MUFG and UniCredit. As of September, the group’s liquidity exceeded €13.8 billion, covering 30 months of financial needs. READ MORE
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20/10/2020Iberdrola and Volvo Car España agree to promote electric mobility in Spain together Iberdrola and Volvo Car España have signed a framework cooperation agreement to promote sustainable mobility, under which the energy group will supply charging solutions for the car manufacturer’s Recharge vehicle range in Spain. The solution that Iberdrola and its portfolio company Wallbox will supply to Volvo is designed to make charging its customers’ vehicles easier as it includes both the supply of the charging point and its installation in a private or shared garage. In addition, customers will be able to sign up for the Iberdrola Electric Vehicle Plan electricity rate, which allows users to travel 1,000 kilometres for 5 euros, ten times cheaper than diesel or petrol. The proposal also includes six months of free charging anywhere in the Iberdrola public network. 100% green energy and digital solutions Using the infrastructure that Iberdrola will supply to the manufacturer, users of the Volvo Recharge range will charge their electric car's batteries with 100% green energy from clean generation sources with certificates guaranteeing its renewable origin (GoO). The charging points will also be available on the Iberdrola Public Charging App, the only one in Spain with verified information about all Iberdrola's public charging points, and those belonging to other operators. With the app, drivers will be able to geo-locate a charger and, in the case of Iberdrola customers, be able to book it and pay using their mobile phone. Electric mobility and green recovery Iberdrola continues to be committed to the electrification of transport in its strategy for the transition to a decarbonised economy, as a key element in reducing emissions and pollution, as well as for a green recovery in the post-Covid world. The company has unveiled a sustainable mobility plan , with an investment of €150 million, with which it will increase its roll-out of electric vehicle charging points over the coming years. The initiative entails installing around 150,000 charge points in homes, companies and on the public road network in cities, as well as on the main motorways and roads over the next five years. The commitment to deploying high efficiency charging points will see the company install ultra-rapid (350 kW) charging points every 200 kilometres, super-rapid ones (150 kW) every 100 kilometres, and rapid (50 kW) charging points every 50 kilometres. Iberdrola is aware of the need to boost electric mobility in Spain through coordinated, effective action involving the major players. The company has, therefore, now completed more than 40 infrastructure roll-out agreements with government departments, institutions, companies, service stations, and electric vehicle dealers and manufacturers. The company has recently become the first Spanish business to subscribe to The Climate Group’s EV100 initiative, with the aim of accelerating the transition towards electric vehicles with a commitment to electrifying its entire fleet of vehicles and allowing its staff to charge their vehicles at its businesses in Spain and the United Kingdom by 2030. Volvo's Strategy In 2019, Volvo met the target it set in 2017 of having an electrified version of all its vehicles available from that year on. In Spain, the Volvo Recharge range of plug-in hybrids now offers seven models and twelve versions with a 0 emissions label. Volvo has also set a target of reducing its vehicles’ carbon footprint by 40% during their useful life, between 2018 and 2025. A full 80% of the electricity used by the Volvo manufacturing network worldwide is sustainable and comes from renewable sources. All of the electricity used at its Chengdu factory, the biggest Volvo Cars factory in China, is now supplied from renewable sources: around 65 percent comes from hydroelectric power and the rest from solar or wind power and other sources. The manufacturer’s other short-term goals are to reduce the CO2 emissions linked with its global supply chain by 25% by 2025 and to reduce the carbon emissions associated with the company’s general operations by 25%. The market share of Volvo Cars' Recharge range of rechargeable models more than doubled in the first six months of the year as compared to the same period in 2019. In 2019, Volvo Cars sold almost 46,000 plug-in hybrids, 23% more than in 2018 and more than double the figure for 2017. In Spain, the Recharge range currently accounts for more than 20% of sales and the trend is expected to continue upwards in the coming years. Between 2020 and 2025, Volvo Cars is going to present five completely electric models, the first of which is the four-wheel-drive XC40 Recharge, with over 400 kilometres between charges (WLTP) and delivering 408 HP. READ MORE
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16/10/2020Ignacio Galán attends the presentation ceremony for the 2020 Princess of Asturias Awards, presided over by Their Majesties the King and Queen of Spain Iberdrola chairman, Ignacio Galán, attended the presentation ceremony for the 2020 Princess of Asturias Awards, presided over by Their Majesties the King and Queen of Spain and Her Royal Highness Princess Leonor. These awards are designed to recognise the scientific, technical, cultural, social and humanitarian work carried out by people and institutions, individually or in groups, on the international stage. The winners of the 2020 Princess of Asturias Awards are: * Concord: Spanish health workers on the front line against COVID-19 * Arts: Ennio Morricone and John Williams * Communication and Humanities: The Guadalajara International Book Fair and the Hay Festival of Literature & Arts * Social Sciences: Dani Rodrik * Sports: Carlos Sainz Cenamor * Literature: Anne Carson * Technical and Scientific Research: Yves Meyes, Ingrid Daubechies, Terence Tao and Emmanuel Candés * International Cooperation: Gavi, the Vaccine Alliance READ MORE
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13/10/2020Iberdrola takes on the most complex construction of wind farms in Spain, in Asturias Iberdrola is making progress in Asturias on the most comprehensive wind energy infrastructure project currently underway in Spain: the construction of three of the four wind farms (Cordel-Vidural, Capiechamartín and Panondres) that it has planned for the region, all of which will require an investment of more than €100 million. The company will also start the construction of the fourth project, Verdigueiro, once the administrative authorisations are obtained. This new capacity - 130 MW of wind power - will allow it to triple the installed power it has so far in Asturias. This week the company commenced the assembly work of the wind turbines, having finished the civil work, planned the arrival of materials at the wind farm sites and organised the different actions to be performed in the field. Up to 400 people are involved in these tasks. To reach the level of the wind farms, the materials (towers, nacelles and blades, among others) are transported along narrow single-access roads with numerous slopes and bends of up to almost 180º. This activity has required exhaustive planning to avoid effects on the planned works and to make possible the arrival of up to 200 daily shipments with different materials. At an altitude of 800 metres, and in an area with constant weather shifts that make work difficult, large wind turbines are already being erected: blades of 56 metres in length, nacelles weighing 126 tonnes and towers of between 80 and 93 metres in height. The wind farms will consist of SG114 wind turbines, with a unit capacity of 2.62 MW: Cordel-Vidural (37 MW) is located between the municipalities of Navia, Valdés and Villayón; Capiechamartín (34 MW) is located between Tineo and Valdés; Verdigueiro (36 MW) will be built between Tineo and Villayón and Panondres (21 MW) between Villayón and Valdés. The construction of these projects is contributing to the revitalisation of the local industrial framework and will make it possible to generate up to 1,000 jobs. Almost all the field work and civil works are being carried out by Asturian companies such as Hormavasa and Horvalsa, Canteras Rencanos, Deymet, Excade, Posada, Méndez y Mota, Gruas Roxu and Taxus; the project is being developed by ERPASA and the manufacturing of the wind turbine towers, for example, is being carried out at the Windar facilities in Avilés. In this way, the company is contributing to the consolidation of a model in which Asturian companies and the generation of employment are oriented towards sectors of the future, such as renewable energies. Once in operation, the wind farms will generate energy to supply more than 100,000 homes and avoid the emission of 65,500 tCO2/year. Renewable energy, purchases from local suppliers, and innovation and training to transform Asturias Iberdrola has defined four areas of action related to energy transition as its contribution to the socio-economic development of Asturias: more investment in renewables, support for job creation by offering opportunities and contracts to local industry, the training of young people in the skills required by the employment sectors of the future and the development of new innovation projects, such as the creation of a Citizens’ Innovation Platform. In addition to the construction of 130 MW of wind power, the company is helping with the opening of new markets for local industry, with the awarding of contracts to Asturian companies that as of July amounted to €200 million euros, multiplying fourfold the average purchases from Asturian suppliers made by the company each year. These projects will enable companies from Asturias to take part in growth sectors in Spain and international markets and also create thousands of jobs in the region. Iberdrola’s contribution in Asturias also includes the creation of a Citizens' Innovation Platform, to promote entrepreneurship and innovation in the region, and the implementation of training programmes in the energies of the future for Dual Vocational Training students, colleges and universities in the region, with the aim of turning future generations into active players in the energy transition. Renewable energies to activate recovery Iberdrola is convinced that the recovery of the economy and employment will have to be green. This commitment has led it to earmark record investments this year of €10 billion in renewable energy, smart grids and large-scale energy storage systems, after having allocated €25 billion since 2001 in Spain - rising to €100 billion worldwide. Iberdrola is the leader in renewable energies in Spain, with installed wind capacity of more than 6,000 MW and over 16,600 MW in renewables. Worldwide, the total amounts to 32,700 MW, making its generation facilities among the cleanest in the energy sector. READ MORE
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13/10/2020Nasdaq welcomes Iberdrola as the first Spanish issuer to join the sustainable bond network Iberdrola becomes the first Spanish issuer to join Nasdaq's sustainable bond network. The Nasdaq Sustainable Bond Network (NSBN) brings together a number of issuers, providing standardised information on their financial frameworks and the principles they apply (GBP and ICMA, for example), as well as data on the impact that each has on sustainable development goals. The network has proved to be a powerful tool for investors, giving them information and solutions that allow them to conveniently add data to their portfolios via a single platform. The Iberdrola chairman Ignacio Galán said: “As the main issuer of green bonds and provider of renewable energy, Iberdrola supports sustainable finance as a way of speeding up energy transition, along with any other initiative that seeks to tackle climate change, such as the NSBN.” Iberdrola plays an active role in the fight against climate change through sustainable funding. In 2014 it became the first Spanish company to launch green bonds and was the world's largest issuer of such instruments in 2016 and 2017. Iberdrola currently has 11.4 billion euros of green sustainable financing through capital markets as of June 2020. READ MORE
