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ScottishPower parent group Iberdrola sets a new investment record

22/02/2024

  • EBITDA of €14.42 billion, up 9%

  • Record investment of €11.38 billion delivers an increased regulated asset base of €42.21 billion (+8%), and increased renewables capacity of 42,187 MW

  • Total assets exceed €150 billion

  • Proposed dividend: €0.55 / share, an increase of 10.8%

  • Financial strength: cash generation reached €11.1 billion (+8%)

  • 2024 Outlook: 5-7% Net Profit Growth, driven by investment of €12 billion

Iberdrola Office

Integrated business model and disciplined investment driving growth:

  • EBITDA of €14.42 billion, up 9%, Net profit of €4.8 billion (+10.7%).
  • Grids and offshore wind are the main drivers of a record annual investment of €11.38 billion across all geographies (€33.5 billion over the last three years).
  • Record regulated asset base: investment in networks up 11% to €5.2 billion, increasing the total asset base to €42.21 billion (+8%).
  • Renewable capacity of 42,187 MW: an additional 3,250 MW was installed in 2023 with a total associated investment of over €5 billion (60% in offshore wind and hydro).
  • Installation of the Saint Brieuc offshore wind farm in France has been completed and first power achieved at Vineyard Wind (the first large-scale offshore wind project in the U.S.). 
  • Networks: New Regulatory Frameworks in the U.S., the United Kingdom, and Brazil.
  • The company’s Total Assets now exceed €150 billion.

Continued focus on delivering social dividend

  • Emissions stand at 55 grams per kWh in Europe, approximately 80% less than the industry average.
  • 4,700 new additions to the workforce, reaching 42,300 people globally.
  • Purchases of goods and services total €18.1 billion from thousands of suppliers, supporting 500,000 jobs across the supply chain.
  • €9.3 billion contributed in taxes worldwide (+24%).
  • €385 million invested in R+D+I, reinforcing the company’s leadership position in innovation.
  • Continued External Recognition for ESG performance:
    • Top score (CDP), in the top 5% of the most sustainable companies (S&P), ESG Leadership Award (Foreign Policy Association), Best Corporate Governance Award (World Finance).

Asset Rotation Plan Completed

  • $6 billion Mexico transaction:  approvals are received, payment is expected on February 26th. The transaction affects 55% of Iberdrola’s business in the country, mainly gas plants that sell energy to CFE. Iberdrola retains 45% of its business (renewables and industrial customers), and all growth potential in renewables (6,000 MW pipeline of wind and solar).
  • Co-investment alliances: In 2023, €2.2 billion has been co-invested with partners such as Norges Bank, Masdar and GIC.

Increasing financial strength

  • Cash generation reached €11.1 billion (+8%)
  • €14.7 billion in new financing: 91% linked to ESG criteria.
  • Accounting for the Mexico sale agreement, debt fell to circa €42 billion, and the ratio between cash generation to debt improved to 25.7%.  

Stronger market conditions for energy sales

  • 100% of energy in 2024 and 85% in 2025 already sold.
  • Iberdrola was recently recognised by Pexapark as the leading European utility in both deals and volume of energy sold via long-term contracts (PPAs) with industrial customers in Europe: almost 1,000 MW signed in 2023.
  • Portfolio of c. 12 million retail customers in the UK and Spain with 2.5 to 3 contracts per customer

Proposed dividend: €0.55 / share, up 10.8%

  • On January 31, €0.202 per share was already paid as interim dividend.

2024 Outlook: 5-7% Net Profit Growth Excluding Capital Gains

  • New investment record planned in 2024: €12 billion.
  • Networks Growth: New Frameworks in the US, UK and Brazil.
  • New renewables capacity:
    • 2,000 MW onshore
    • New offshore wind farms already under construction in the US, Germany and the UK.
  • Dividend is expected to grow in line with Net Profit.

Next Capital Markets Day: March 21, 2024

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Commenting on the results, Ignacio Galán, Executive Chairman of Iberdrola, said:

“In a year of challenging macroeconomic conditions, we have once again maintained our consistent track record of delivering on our guidance, thanks to our integrated business model and our disciplined focus on investment and growth in stable markets.

“After a year of record investments, our enhanced financial solidity means we will continue to invest significantly in the energy transition in 2024. New investment frameworks in networks and our offshore wind projects under construction will help us to deliver strong and profitable growth for the year.”

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