It foresees a growth in net profit of 5-7% and investments of 12,000 million by 2024
Iberdrola obtained a net profit of 4,803 million euros in 2023, which represents an increase of 10.7% compared to the previous year and thus pulverizing its record profits of 4,339 million euros from a year ago, the company reported.
The energy company’s gross investments also reached the record figure of 11,382 million euros, with a growth of 6.0% compared to 2022, with RAB growth in the network business of 8% to 42,210 million euros and having installed more than 3,250 renewable megawatts (MW) in 2023 – which have involved an investment of 5,000 million euros, 60% in offshore wind and hydroelectric -, adding a total installed capacity of 42,187 MW in the world.
In Spain, investments exceeded 2.3 billion euros. In the last three years, it allocated more than 33.5 billion in all geographies, of which 7.6 billion were in Spain.
Iberdrola’s gross operating profit (Ebitda) grew by 9% in 2023, to €14,417 million, due to the recovery of production and operational efficiency that includes €117 million of spending in the fourth quarter for recurring efficiencies in coming years.
In addition, the group chaired by Ignacio Sánchez Galán completed its asset rotation plan with the recent closing of the transaction in Mexico and the expected cash inflow in the following days – February 26 – of approximately 6,000 million dollars, in addition to international alliances with Norges Bank, Masdar and GIC, which have allowed it to strengthen its balance sheet and maximize access to new growth opportunities.
HISTORICAL CONTRIBUTION TO PUBLIC COURSES OF ALMOST 9,300 MILLION.
Despite these historic profits, Iberdrola highlighted that it made a historic contribution to the public coffers of the countries in which it is present of almost 9.3 billion euros last year, 24% more than in 2022. Spain is the country in which that the company contributed the most, with almost 3.5 billion euros, which represents an increase of 35%.
The president of Iberdrola, Ignacio Sánchez Galán, highlighted that in 2023, despite being a year of macroeconomic uncertainties, the group has been able to maintain its “historic trajectory of meeting objectives, thanks to an integrated business model and a strategy focused on investments and growth in stable markets”.
“After a year of record investments, we have strengthened our financial strength and will continue to invest significantly in the energy transition in 2024. The new grid investment frameworks and our offshore wind projects under construction will help us achieve strong and profitable growth for the year,” he said.
IT RAISES THE DIVIDEND BY 11%, TO 0.55 EUROS PER SHARE.
With regard to shareholder remuneration, following these results, the company’s board will propose to the General Shareholders’ Meeting a complementary remuneration of 0.348 gross euros per share, to which must be added the interim dividend of 0.202 gross euros per share paid in January. In this way, the company will distribute 0.550 euros per share against the 2023 results, which represents an increase of 10.8%.
On the other hand, the electricity company has increased its operating cash flow by 8%, to 11,096 million euros, and has continued to strengthen its balance sheet with more than 14,700 million euros of new financing under competitive market conditions. Of this amount, 13.3 billion meet ESG (environmental, social and governance) criteria.
LOWER ITS DEBT TO 42,000 MILLION.
Considering the closing of the Mexico operation, net debt drops to a range between 42,000 and 42,500 million euros and the ratio of cash generation to net debt improves to 25.8%.
Thus, the group’s liquidity stands at 20.9 billion euros, which would allow it to cover 27 months of financial needs without resorting to the market and the average life of its debt is close to 6 years.
FORECASTS FOR 2024.
Looking ahead to 2024, in which it will update its strategic plan next March, Iberdrola announced that it will invest 12,000 million euros, which will allow it to increase its installed renewable land capacity by 2,000 MW, to which will be added the contribution of the new offshore wind projects currently under construction.
In addition, the company will continue to invest in networks, counting on new regulatory frameworks in the United States, the United Kingdom and Brazil, and has already closed the sale of 100% of its energy for this year.
With all this, it foresees a growth in net profit of 5-7% – excluding capital gains from asset rotation – and it is estimated that the dividend will increase in line with the results.
On the other hand, Iberdrola increased its network asset base by 8%, reaching 42,210 million euros. The company already has 1.3 million kilometers of power lines and thousands of substations around the world and will continue to invest in regions with new regulatory frameworks such as the United States, the United Kingdom and Brazil.
In addition, it led the PPA market in Europe, with almost 1,000 MW signed in 2023 and improved market share in the Iberian Peninsula, with 8.3 million customers and around three contracts per customer.
