News
2022-11-09 09:17:00.0
Iberdrola to invest record €47bn in the energy transition in 2023-2025; increases 2025 EBITDA and Net Profit outlook
The record global investment plans we have set out today will help us to bring more self-sufficiency and resilience against potential energy shocks in the countries where we operate, by reducing their dependency on oil and gas and by continuing their path to Net Zero.
Ignacio Galán, Iberdrola Executive Chairman
Iberdrola to invest record €47bn in the energy transition in 2023-2025; increases 2025 EBITDA and Net Profit outlook [PDF] - Growth based on investments in electricity networks and a selective approach to renewables
- Improving earnings quality and protecting balance sheet strength through geographical diversification and a prudent financial model
- Highlights:
- Record investment plan of €47bn to 2025, driven by organic investments in all markets and PNM Resources transaction.
- Strong financial ratios during the plan are comfortably within thresholds for current ratings, thanks to a model based on fixed-rate financing, long-term maturity profiles, active liquidity management and optimization of green financing, with no capital increases expected and supported by asset rotation.
- €27bn (57%) of investment in electricity networks to increase asset base reaching €56bn by 2025 – providing predictable frameworks and protection from macroeconomic uncertainties.
- €17bn of investment in renewables to deliver 52GW of renewable installed capacity by 2025 – based on projects with the best risk/reward profile and a high-quality pipeline.
- More than 80% of investments allocated to A-rated countries with stable regulatory frameworks and ambitious electrification targets: improving geographical diversification through additional focus on countries like Germany, France and Australia.
- EBITDA reaching €16.5-17bn by 2025 (8-9% CAGR), with net profit increasing to €5.2-5.4bn (8-10% CAGR).
- Dividend to grow in line with net profit (65-75% pay-out) to between €0.55-0.58 in 2025, with a floor of €0.46 in 2023-24 and €0.50 in 2025.
- The company reaffirms its ESG credentials:
- Targets to become carbon neutral by 2030 in scopes 1 and 2 and reaching Net Zero in all 3 scopes by 2040
- 12,000 new hires to 2025, supporting more than 500,000 jobs by 2030 along its value chain.
- Reaffirming 2030 outlook driven by growth in all markets and acceleration of electrification: investments of €65-75bn in 2026-30 to exceed 100 GW of capacity and €65bn of networks assets.
- Highlights: