The Diplomat
Iberdrola recorded a net profit of 3,637 million euros in the first nine months of the year, which represents an increase of 17.2% compared to the same period last year – 22.4% excluding the extraordinary gain from the sale of part of the business in Mexico – according to the company.
The gross operating profit (Ebitda) of the energy company chaired by Ignacio Sánchez Galán grew by 13.2% to 10,783 million euros at the end of September due to higher production volumes, a higher load factor and operating efficiency, together with lower energy purchases.
Iberdrola’s gross investments reached Euro 10,842 million in the last 12 months, with RAB in the networks business growing 9% to 41,200 million euros having installed 3,100 megawatts (MW) of renewables in the last twelve months, reaching a total of 41,300 MW.
With these results at the end of September, the company forecasts double-digit net profit growth by 2023 (excluding any additional capital gains from asset turnarounds). Thus, it is targeting a new earnings record for this year, after the profit of 4,339 million euros in 2022. Assets will reach 150,000 million euros in 2023.
This is the third time that Iberdrola has smashed its aspirations for the year so far this year, as the last time, last July, it had anticipated high single-digit net profit growth.
Iberdrola has also announced that the next Capital Markets Day will be held in March, where the company’s forecasts for the coming years will be presented.
By business area, network assets amounted to 41,300 million euros in September, with regulatory frameworks 96% closed by 2025. Iberdrola has guaranteed 85% of the grid supply chain by 2025, a percentage that rises to 100% in transmission projects.
In renewables, installed capacity has grown by 3,100 MW in the last 12 months and it has 8,000 MW under construction. In addition, it has 100% of the supply chain assured for 2025 in this area. Another of its other main businesses is offshore wind, which will reach 3,100 MW in 2025 and 4,800 MW in 2026/27. The company has 3,500 MW under construction, representing an investment of 10,000 million euros.
It also stressed that it is on schedule, with an assured supply chain and 100% of the energy sold through PPAs and CFDs within 15 to 20 years. This technology will contribute 1,900 million euros to Ebitda in 2026/27, up from 700 million euros in 2022.
Thanks to a mature offshore wind portfolio at competitive costs (€60/kW), the company has opportunities beyond 2027: 3,600 MW of licensed projects in the UK and US, plus 8,000 MW of offshore rights.
The renewables business is currently complemented by significant storage development in hydro power plants, enabling the integration of more renewables capacity as part of the future energy mix. In fact, it is making progress in the full development of this new capacity, taking advantage of the 100 million kWh it has in operation, with 20 million kWh under construction.
At present, the company has reached the 7,500 million euros planned asset and alliance rotation plan for 2025, which has allowed it to strengthen the balance sheet and maximise access to new growth opportunities.
