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Iberdrola and ScottishPower Full Year Results

26/02/2020

Record investments of €8.16 billion take Iberdrola's net profit to a record €3.4 billion in 2019 (+13%). 

Ignacio Galán, Group Chairman: “These results reflect the company’s broad strategic vision and its capacity for delivery, which have enabled us to be 20 years ahead of the current energy transition.”

“Iberdrola demonstrates year after year that its sustainable business model creates value for shareholders and society at large,” added Galán 

  • Investments grow 32% to €8.16 billion: with 44% of total going to networks and 41% to renewables. Capacity increased in all its markets, with 5,500 new MW installed in 2019 (five times the annual average capacity installed over the past few years).
  • Positive business performance: EBITDA grows by 8.1%, exceeding €10 billion for the first time, driven by the networks, and generation and retail activities, despite having recorded the group’s lowest hydroelectric production in years.
  • Improved financial strength: in a context of record investments, cash flow generation grows by 10% to €8.06 billion. This situation mirrors the improvement of financial solvency ratios.
  • Future prospects: With record investment of over €10 billion planned in 2020, Iberdrola expects to post high single-digit growth in net profit, while keeping its financial strength and its increasing dividend policy. This growth rate will be maintained in the following years.
  • A model benefiting shareholders, employees and society at large: In 2019 Iberdrola supported 3,500 new recruits (5,000 anticipated in 2020), kept its CO2 emissions two-thirds below those of its European peers, purchased €20 billion worth of goods and services from suppliers, and contributed €14 billion in taxes.

ScottishPower Results 

ScottishPower Renewables:
EBITDA £461.0m (+£3.2m, +0.7%)
Underlying wind EBITDA is up 14% but this has been offset by the 2018 sale of the Hydros business to Drax. The higher wind results reflect higher energy prices and the inclusion of East Anglia One windfarm for the first time. 
 
SP Energy Networks
EBITDA £866.6m (+£53.2m, +6.5%)
The returns for SP Energy Networks are on-target as the business delivers the RIIO-ED1 distribution investment programme, which runs until 2023, and the RIIO T1 Transmission investment programme until 2021.
 
Liberalised:
EBITDA £96.7m (-£175m; -64%)
The Liberalised business EBITDA decreased due to the mild 2019 weather (in comparison to 2018 which saw the ‘Beast from the East’ in Q1) and the adverse impact of the UK Government’s Price Cap.  The disposal of the generation business to Drax also had a small impact. 

ScottishPower retail customer numbers have fallen by 317,000 from 5m to 4.7m at December 2019. Total volumes versus prior year: Electricity -10% and Gas -7%

Commenting on the results, Keith Anderson, ScottishPower CEO, said: “Our performance during 2019 demonstrated the robustness of our end-to-end business model. Energy Networks and Renewables both performed well. In a highly competitive market, Retail customer numbers fell by 6%, and volumes were lower due to milder winter conditions this year.

“The outlook for ScottishPower remains strong. Last year, the UK made significant commitments to reach Net Zero by 2050 and we’re committed to helping to meet that target. We are unique in the UK because we operate across the Networks, Renewables and Retail sectors – so every aspect of our businesses can support this ambitious target.

“We’re investing more than £5m every day on projects including smart grids and windfarms, and significantly this year we have also led the market in helping customers to go green, by launching our guarantee that all new fixed-price tariffs will automatically be supplied with clean electricity from our own windfarms. This is clean power for customers on a scale never seen before in the UK retail market, which will also support the development of new renewable projects.

“Further opportunities will come from helping businesses reduce their carbon footprint. This year we have agreed contracts to supply Amazon and Tesco with wind power for their operations. We expect to sign new contracts this year as companies continue to realise the cost benefits and reputational advantage that green power provides.”

Supporting Information

To view Iberdrola's full press release and supporting documentation, please click the links below:

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