Forecasts double-digit net profit growth by 2023
Iberdrola recorded a net profit of 3,637 million euros in the first nine months of the year, which represents an increase of 17.2% compared to the same period last year - 22.4% excluding the extraordinary one derived from the sale of part of the business in Mexico-, the company reported.
The gross operating result (Ebitda) of the energy company chaired by Ignacio Sánchez Galán grew by 13.2%, reaching 10,783 million euros at the end of September due to higher production volumes, the higher load factor and efficiency operational, along with lower energy purchases.
Iberdrola's gross investments reached 10,842 million euros in the last 12 months, with RAB growth in the network business of 9% to 41,200 million euros and having installed 3,100 renewable megawatts (MW) in the last twelve months, until reaching a total of 41,300 MW.
With these results at the end of September, the company foresees double-digit net profit growth for 2023 (excluding any additional capital gains from asset rotations). Thus, it aims for a new profit record for this year, after the profit of 4,339 million euros in 2022. Assets will reach 150,000 million euros in 2023.
This is the third time that Iberdrola has shattered its aspirations for the year so far this year, since in the last one, last July, it had anticipated growth in net profits in the high single digits.
IT WILL CELEBRATE ITS CAPITAL MARKETS DAY IN MARCH.
On the other hand, Iberdrola has announced that the next Capital Markets Day will be held next March, in which it will advance the company's forecasts for the coming years.
Regarding the group's adjusted net financial debt, it stands at 47,951 million euros at the end of September, increasing by 8.3% compared to September 2022 due to the investment effort of the period and the evolution of exchange rates. .
Likewise, the company has once again strengthened its balance sheet with almost 6,000 million euros of financing in the last nine months, with favorable conditions. Thus, operating cash flow increased by 11%, to 11,103 million euros in the first nine months of the year, which places the FFO/net debt ratio at 23.2%.
In addition, it has liquidity of 20,204 million euros, which would allow it to cover 21 months of financial needs without resorting to the market.
The president of the company, Ignacio Sánchez Galán, considered that the execution of the strategy presented last November "is allowing the group to grow, preserve its financial strength and increase its dividend."
THE DIVIDEND INCREASES BY 11%.
In this way, after already reaching the dividend floor for 2025 this year, the energy company increases its interim dividend for 2023 - which will be distributed in January - by 11%, to 0.20 euros per share, compared to 0. 18 euros per 2022 title.
The complementary dividend will be added to this, once approved at the General Shareholders' Meeting. The total dividend charged to 2022 - 0.501 euros per share - has already reached the established floor of 0.500 euros per share for the year 2025 in the strategic plan announced in November of last year.
GROWTH BY BUSINESS AREAS.
By business areas, network assets reach 41.3 billion euros as of September with regulatory frameworks closed to 96% by 2025. Thus, Iberdrola has guaranteed 85% of the network supply chain by 2025, a percentage that rises to 100% in transportation projects.
In renewables, installed capacity has grown by 3,100 MW in the last 12 months and has 8,000 MW under construction. In addition, it has 100% of the supply chain secured by 2025 in this area.
Another of its notable businesses is offshore wind, which will reach 3,100 MW in 2025 and 4,800 MW in 2026/27. The company has 3,500 MW under construction, which represents an investment of 10,000 million euros.
In addition, he highlighted that he is meeting the deadlines, with a secured supply chain and 100% of the energy sold through PPAs and CFDs within a period of between 15 and 20 years. This technology will contribute 1.9 billion euros to Ebitda in 2026/27, compared to 700 million in 2022.
Thanks to a mature offshore wind portfolio at competitive costs (60 euros/kW), the company has opportunities beyond 2027: 3,600 MW of authorized projects in the United Kingdom and the United States, plus 8,000 MW of seabed rights.
The renewable business is currently complemented by an important development of storage in hydroelectric plants, which allows the integration of greater renewable energy capacity as part of the future energy mix. In fact, it is advancing in the full development of this new capacity, taking advantage of the 100 million kWh it has in operation, with 20 million kWh under construction.
Currently, the company has reached the 7.5 billion euros planned in the asset rotation and alliances plan for 2025, which has allowed it to strengthen the balance sheet and maximize access to new growth opportunities.