Resilient business model, strong international performance and €10.5 billion invested, deliver net profit of €3.1 billion; full year outlook maintained
Iberdrola announces its financial results for Q3 2022
Ignacio Galán, Executive Chairman of Iberdrola.
We continue to contribute to a more self-sufficient, sustainable and competitive energy system. Accelerating investments in electrification will allow us to be less dependent on the volatility of oil and gas and generate more growth and more jobs, as this set of results show
- Financial Highlights
o Net Profit of €3.1 billion (+29%), driven by strong international performance (mainly in the United States and Brazil) and a 14 % increase in investments to €7.6 billion (€10.5 billion year-on-year).
o Ebitda increased by 17% to €9.53 billion.
o Operating cash flow reached €8.2 billion, up 28%
- Business Model Resilience in the current macro context
o Geographical diversification allows the company to maximize growth and benefit from positive currency evolution
o Business model based on networks regulated assets and long-term contracts protecting from demand volatility and inflationary pressures.
o Iberdrola has already sold 100% of production in Spain in ’22, 90% in ‘23, 70% in ‘24 and 50% in ‘25.
o 100% of equipment supplies secured for 2022 and 90% for 2023, with prices closed or hedged, mitigating impacts of raw material cost increases and exchange rates.
o 75% of all debt is secured at fixed rates, with an average period of 6 years.
o Liquidity stands at €24 billion, equivalent of covering 27 months of financial needs without further accessing the market.
- Proactive contribution to alleviate the current crisis
o Maintaining stable prices to our customers
o Supporting vulnerable customers (payment facilities).
o Promoting energy efficiency and savings
o ~4,700 new hires in last 12 months
o Over €7.8 billion of tax contribution globally in the last year
- Operational Highlights
o Iberdrola invested €7.6 billion globally in the first nine months, an increase of 14%, with a total of €10.5 billion invested in the last 12 months.
o 90% of investment allocated to renewables and smart grids to accelerate electrification and energy independence from fossil fuels.
o 75% of investments in international markets, with U.S. as primary investment destination.
o Wind and solar production increases by 13% thanks to new installed capacity and good operational performance, driving renewable energy production to 55,354 GWh and compensating for the lower hydro production due to weather conditions.
o New partnerships to boost clean energy: Alliance with EIP for Wikinger to drive further growth in offshore wind; with Sempra in the U.S. to develop green hydrogen; with Shell to boost floating offshore in the UK and with BP to promote 11,000 charging points in Spain and Portugal.
- Reaffirming outlook, increasing shareholder remuneration
o The company has reaffirmed its net profit outlook for this year between €4 and €4.2 billion euros. In addition, it has approved an interim shareholder remuneration of 0.18 Euros per share, with an increase of 5.9%, that will be payable in January 2023.