Iberdrolaplans to invest in Spain until the year 2022 a total of8,000 million euros to lead the energy transition.The company presented on Tuesday in London the update of theStrategic Perspectives 2018-2022,an ambitious project with which it intends to double its investments to continue being the main renewable energy company in the country and to contribute to the decarbonisation of the energy model and the electrification of the economy. This figure of 8,000 million is 40% higher than that initially contemplated in this plan.
According to the Strategic Perspectives 2018-2022, Iberdrola considers thedevelopment in Spain of at least 10,000 new megawatts (MW) of solar and wind powerby 2030. This figure means tripling the current power in the country of these two technologies. In the year 2022, Iberdrola expects to have already launched 3,000 new renewable MW in Spain.
"With this plan, we accelerate investments in Spain and give a strong boost to the transition to a low carbon economy," said thepresident of the group, Ignacio Galán.
Globally, the company will invest 34,000 million eurosin the period between 2018 and 2022, which increases the investment effort initially envisaged in its Strategic Perspectives for this period, which amounted to 32,000 million euros, by 2,000 million euros. The company has made this revision upwards thanks to the progress made in fulfilling its objectives and the new opportunities that have arisen in the different countries where it operates.
IsUpdate of the Strategic Perspectives 2018-2022occurs after the company exceeded for the first time the 3,000 million euros annual net profit -3,014 million euros in the year 2018- and in a favorable context to grow organically in the main geographical areas where Iberdrola operates: Europe Continental, especially in Spain, the United Kingdom, Brazil, the United States and Mexico.
Specifically, of the 34,000 million euros of investment, 86% will go to regulated activities or with long-term contracts, according to the company's strategy to focus onbusiness with stable and predictable returns.Thus, 47% of the total amount -16,000 million euros- will be invested in Networks and 39% -13,300 million euros- in Renewables. The Generation and Clients business will receive 11% of the total -3,800 million euros-. As a result, Iberdrola will have increased its installed capacity by almost 40% during the execution of its Strategic Perspectives.
The company is currently advancing in the development and construction of 10,113 new MW, of which 65.3% -6.606 MW- corresponds torenewable projects. In addition, in 2023 it will keep 5,300 million euros in progress in the Renewables and Generation business, mainly in the offshore wind farms of Saint Brieuc (France), Vineyard Wind (United States) and Baltic Eagle (Germany) and in the hydroelectric complex of the Támega (Portugal).
Practically all of the investment in Networks – a 98% – is already assured thanks to the existence ofregulatory frameworks defined in different countries.As a result, Iberdrola will have increased the value of its regulated assets by 34% by 2022, to 38,900 million euros.
Taking into account the three businesses -Renewable, Generation and commercial and Networks- and the Iberdrola corporation will have more than 9,000 million euros of capital in progress at the end of 2022, which will contribute to the generation of results beyond that date.
In the area of Renewables,the company will have 9,900 new megawatts (MW) by the close of 2022with respect to the closing of 2017. In addition, Iberdrola will reach 90 gigawatt hours (GWh) of storage capacity in 2022, which represents an increase of 20 GWh compared to current levels. The storage by pumping hydroelectric power stations is key to enable a greater penetration of clean energies in the electrical system.
Regarding the distribution by currency, the company will maintain a very diversified profile: 36% of the investments will be made in dollars, 29% in euros, 17% in sterling and 18% in Brazilian reais.
Better results and dividend
The new investments foreseen for the period 2018-2022 allow Iberdrolaaccelerate your growth and improve your earnings forecastsfor the end of the period. Thus, the company expects to close 2022 with a net profit of between 3,700 and 3,900 million euros -which represents an increase of up to 30% compared to 2018- and a gross operating profit (Ebitda) of more than 12,000 million euros . In this way, the maximum growth targets at initial 2022 are now converted into the lower part of the updated target ranges.
These results will allow the companyfulfill its commitment to increase the remuneration of its shareholdersin line with the evolution of the results. Iberdrola will set annual minimums that will reach a gross floor of 0.40 euros per share in 2022.
The implementation of the Strategic Perspectives updated today in London also contemplates the continuous improvement of the levels of efficiency andboost to the plan of rotation of non-strategic assets,whose value will amount to 3,500 million euros in the period. As a result of all this, the company will maintain its financial strength: the ratio between operating cash flow and net debt will exceed 24% in 2022.