New record for Iberdrola (for the third consecutive year). The electricity company chaired by Ignacio Sánchez Galán recorded a net profit of 4,339 million euros in 2022, which represents an increase of 12% compared to the previous year and beat its own forecasts.
As the company has notified the National Securities Market Commission (CNMV), the gross operating result (Ebitda) grew by 10%, to 13,228 million euros, with the United States and Brazil offsetting the negative evolution of Spain, where fell 19%, and the slowdown in Mexico. “The results in Spain fell by 19%, weighed down by regulatory and tax measures and the increase in costs that the company has not passed on to customers,” the company said in the presentation of results.
For their part, investments stood at 10,730 million euros, 13% more year-on-year. As detailed by Iberdrola, 38% went to the European Union (with close to 3,000 million going to Spain and 1,200 million to other countries such as Germany, France or Portugal); 25% to the United States; 20% to Latin America; and 13% to the United Kingdom. Sales rose 38%, to 53,949 million euros.
The electricity company closed the year with a net adjusted financial debt of 43,749 million euros, an increase of 12%, “due to the strong investment effort of the period and the significant appreciation of currencies.” With these results, Sánchez Galán strengthens himself to obtain the support of the shareholders for a new term as president at the next general meeting of shareholders. The last time they approved the re-election of the manager was in 2019, a position he entrusted to Armando Martinez.
Under the strategic plan that it presented at Capital Markets Day in November, Iberdrola expects an increase in its net profit of between 8% and 10% per year for the 2023-2025 period, from 4,200 million last year to 5,400 million for the end of the cycle. To meet your goal, calculate record investments of about 47,000 million. The figure includes the 11,000 million euros for the purchase of the American
Likewise, electricity growth calculates an Ebitda of between 16,500 and 17,000 million euros for 2025, which would mean an annual average of 8-9%, with Spain representing 31% of the total. With regard to the dividend, it will allocate more than 11,000 million euros to remunerate its shareholders. Thus, he estimates that the dividend will grow in line with net profit, representing 65-75% of the ‘pay-out’, placing it between 0.55-0.58 euros per share in 2025. The floor would be 0.46 euros in 2023-24 and 0.50 euros in 2025, within the Iberdrola Flexible Remuneration program, which includes the repurchase of securities.
Iberdrola has also reaffirmed its prospects for 2030, driven by growth in all markets and the acceleration of electrification, with investments of between 65,000 and 75,000 million euros between 2026 and the end of the decade. The company has set a goal of exceeding 100 gigawatts (GW) of installed capacity and €65 billion in network assets. It has already reached 40,000 operational renewable megawatts (MW) and, in addition, another 7,675 MW will be operational in the next four years (3,500 MW corresponding to offshore wind).
