The energy company states that the drop in national sales is explained by the high energy prices that it has not passed on to the customer
Iberdrola has improved its results by 36% in its worldwide operations, generating a net profit of EUR 2,075 million in the first half of this year. However, Spain has become the company’s Achilles heel, with a 26% drop in results.
The company clarifies that the Spanish company has been fundamentally affected “by high energy prices that have not been passed on to customers with previously agreed fixed-price contracts”. Already in the first quarter, Iberdrola Spain earned 29% less than in the same period of the previous year compared to the 3% increase in the group as a whole.
The publication of these results coincides with the pending bill to pass a tax taxing the extraordinary benefits of electric utilities and banks. The president of the government, Pedro Sánchez, announced this tribute in the latest debate on the state of the nation, raising an estimated 2,000 million euros in two years.
The strong growth in the United States, Brazil and the United Kingdom in particular, as in the previous quarter, in turn offset the negative result of Iberdrola Spain.
The company has invested EUR 4,741 million in the first half of 2022, 5% more, which amounts to more than EUR 10,200 million in the past year. Of this, 90% has been allocated to renewable energy sources and smart grids to accelerate the energy transition in the areas where it is present.
The president of Iberdrola, Ignacio Galán, has assured that at Iberdrola “we will continue to increase our investments to strengthen energy autonomy and accelerate the green transition, reducing dependence on fossil fuels. Thanks to the projects we have carried out in Spain and around the world, we are able to generate economic activity and maintain 400,000 jobs with more than 19,000 suppliers.”
As a result of the investments already made, the group has installed 3,400 new renewable MW in the past 12 months – 1,241 photovoltaics, 996 onshore wind, nearly 1,000 hydroelectric storage and 116 MW batteries – and is strengthening its leadership in renewable energy by almost 39,000 MW of green capacity worldwide. It also has a 95,000 MW project portfolio, of which 10,800 MW is under construction or secured with long-term contracts.
Country by country, Iberdrola has continued to promote its commitment to decarbonisation in Spain, where it has allocated nearly €1,100 million in the first half, 23% of the total. In addition, it has invested 1,246 million euros in the United States, 837 million euros in Brazil, 801 million in the United Kingdom, 153 million in Mexico and 619 million in other countries.
In recent months, the company has strengthened its growth plan with several new projects. In the field of renewable energy, the UK has allocated 2,094 MW -1,372 MW offshore wind, 396 MW onshore wind and 326 MW photovoltaic power, representing an investment of 3,700 million pounds -4,400 million euros-.
On the other hand, in networking, Iberdrola has accelerated growth in the UK, where the new distribution framework RIIO-ED2 entails investments of £3,400m -about €4,000m – from next year to 2028, for a total of 6,000 million pounds -7,100 million euros- including those related to transport networks. In addition, 2,000 new kilometers of transmission lines were awarded during the last auction in Brazil, bringing the number of kilometers awarded in recent years to 8,000.
Iberdrola placed EUR 8,200 million in orders with its more than 19,000 suppliers during the semester, bringing visibility and security to a supply chain generating 400,000 jobs around the world. In addition, it hired more than 2,100 people in the semester, more than 5,000 in the past 12 months.
In the past 6 months, the company has again strengthened its balance sheet with more than 8,000 million euros in financing -77% with ESG criteria (environmental, social and governance), on favorable terms. In this way, the group anticipates its financial needs for the whole year. In recent weeks, it has signed a new sustainable credit line of EUR 2,500 million at historically low interest rates with 24 financial institutions and has taken out a green loan for EUR 550 million from the EIB.
The chairman would like to emphasize that Iberdrola is prepared to cope with the current macroeconomic context, as it has a sustainable business model, based on renewable energy sources, networks and storage. 90% of its production in Europe is emission-free, reaching only 55 grams of CO2 per KWh, much lower than the average of its competitors. He has also maintained that he is not dependent on gas or oil from Russia.
The performance during the first half, together with the expectations for the second half of the year, enable Iberdrola to reaffirm its prospects of achieving net profits between EUR 4,000 and EUR 4,200 million for the full year.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
