The Diplomat
The good performance of business in the United States, the United Kingdom and Brazil has enabled Iberdrola to increase its profits by 36% during the first half of the year, despite a 26% drop in profits in Spain, according to data provided by the company.
The energy company chaired by Ignacio Sánchez Galán obtained a net profit of 2,075 million in the first six months of 2022 thanks to the boost from its international business, as the contribution from Spain fell mainly as a result of high energy prices, which have not been passed on to customers with previously agreed fixed prices.
In any case, with this mid-year profit path, Iberdrola reaffirmed its record earnings target for 2022 of between 4.0 and 4.2 billion euros.
Iberdrola’s gross operating profit (Ebitda) grew by 18% in the first half of the year to 6,444 million euros, with a positive evolution in all geographies except Spain.
The group’s gross investments in the first half amounted to Euro 4,741 million, up 5.3%, and reached Euro 10,200 million in the last 12 months, having installed 3,400 megawatts (MW) of renewable capacity in that period, and with a further 7,100 MW under construction.
Of this amount, 90% has been allocated to renewables and smart grids to accelerate the energy transition in the areas where it is present.
Sánchez Galán highlighted when presenting the results that the projects the company has underway in Spain and around the world are enabling it to generate economic activity and support 400,000 jobs in more than 19,000 suppliers.
As a result of the investments already made, the group has installed these 3,400 new renewable MW in the last year -1,241 photovoltaic, 996 MW onshore wind, almost 1,000 MW of hydroelectric storage and 116 MW of batteries- and is now close to 39,000 MW of green capacity worldwide.
It also has a project portfolio of 95,000 MW, of which 10,800 MW are under construction or secured with long-term contracts.
By country, in Spain, it invested almost 1.1 billion euros in the first half of the year, 23% of the total. In addition, it has invested 1,246 million euros in the United States, 837 million euros in Brazil, 801 million euros in the United Kingdom, 153 million euros in Mexico and 619 million euros in the rest of the countries.
In recent months it has continued its drive in renewables with the award of 2,094 MW in the United Kingdom – 1,372 MW of offshore wind, 396 MW of onshore wind and 326 MW of photovoltaic – which will represent an investment of 3.7 billion pounds sterling (around 4.4 billion euros).
In networks, Iberdrola has accelerated growth in the UK, where the new RIIO-ED2 distribution framework will involve investments of GBP 3.4 billion (around EUR 4 billion) from next year to 2028, for a total of GBP 6 billion (EUR 7.1 billion) including those relating to transmission networks.
In addition, it has been awarded 2,000 new kilometres of transmission lines in the latest auction held in Brazil, bringing to 8,000 the number of kilometres awarded in recent years.
The group highlighted that it has a resilient model for the current macroeconomic context, without dependence on Russia, as it does not import Russian oil or gas.
It also has a sustainable business model, based on renewables, networks and storage. In Europe, 90% of the energy company’s production comes from emission-free sources, reaching emissions of only 55 grams of CO2 per kilowatt hour, much lower than the average for the continent.
