Iberdrola earns 3,885 million and breaks another profit record
Iberdrola smashed another profit record in 2021 by reaching profits of 3,885 million euros, 8% more. The first Spanish electricity company thus exceeds its objectives for the year (it had set out to achieve profits of 3,800 million), which will allow it to raise the dividend by 5%, standing at 0.44 euros per share for the year.
The Government takes advantage of the Waste Law to resurrect the failed hydroelectric canon of the PP
The multinational attributes these good results to the good operating behavior in the United States and Brazil, to the new installed capacity, as well as to the greater weight of network regulated assets and financial strength. According to Iberdrola, this positive growth in the United States and Brazil offset the negative performance of the generation business and customers, affected by high energy prices in Spain and the United Kingdom.
In 2021, the group's gross operating profit (Ebitda) exceeded 12,000 million, 20% more, driven by networks and renewable generation. With this figure, the company advances its gross profit estimate for 2022 by a year.
According to the results report sent to the National Securities Market Commission (CNMVI), one of the "key aspects" for the good behavior of the Ebitda of the Electricity Production and Customers area was the "extraordinary positive net impact due to judicial rulings and legal measures in Spain", after the annulment of the hydroelectric canon created by the PP government by the Supreme Court, which has forced the State to return more than 1,900 million to companies in the sector charging it to the public deficit.
Iberdrola, the national hydroelectric leader, explains in this report that in its Ebitda "Taxes decreased by 54.5% due to the non-recurring impact of court rulings in Spain." The positive impact is estimated at 951 million.
In a conference with analysts, the president of the electricity company, Ignacio Sánchez Galán, assured this Wednesday that the group has not benefited from the highs in the wholesale electricity market registered in Europe 2021 due to the exponential rise in gas, because they have continued to offer stable prices to its customers. "If we had sold at 200 euros [por megavatio hora] our results would have been multiplied by two," said the executive.
Galán has pointed out that this situation has had "negative effects" for its income statement in some markets, such as the United Kingdom, where Iberdrola has been forced to go to the market at higher prices.
To questions from analysts about the Villarejo case, Gerardo Codes, head of Iberdrola's Legal Services, has assured that the National Court's investigation into the assignments to the retired former commissioner is "clearly promoted by the competition" in its own interest and could still take "some time". He has reiterated that "no irregular conduct" has been detected in Villarejo's contracts, based on the investigations entrusted to PwC "without any limitation".
4,000 million profit
Iberdrola pointed out that the good results for 2021 and the future prospects in the renewable business allow it to reaffirm its growth forecasts for this year, in which it expects to achieve a profit of between 4,000 and 4,200 million.
The group shot up investments in 2021 to the record figure of 9,940 million, 3% more. 90% of them went to new renewable capacity (44%) and smart grids (45%). By markets, more than half were destined for the United States (28%) and Spain (24%), with 2,736 million and 2,386 million, respectively.
The company has also improved its financial strength thanks to the generation of cash flow, which grew by 9%, to 8,914 million. In 2021, it reaffirmed its leadership in green financing, with 38.8 billion available under green or sustainable formats. In addition, it has more than 70% of the income generated in countries with an 'A' credit rating.
Iberdrola's liquidity reaches 19,500 million, which covers financing needs for 24 months. In an inflationary context, the group has 80% of its debt financed at a fixed rate and an average life of more than 6 years.
The group hired more than 5,500 people in 2021 in the world -40% people under 30 years of age-, supporting more than 400,000 jobs in its suppliers, and the percentage of women in positions of responsibility in the company continued to increase and is already represents 34%.