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Iberdrola reduced its profits by 18.4% in the first semester due to deferred taxes in the United Kingdom

2021-07-21T13:17:46.956Z

The energy group has increased its investments by 37% to exceed 4,900 million in the first six months of the year



The president of Iberdrola, Ignacio Sánchez Galán.EFE

The energy group Iberdrola obtained a net profit of 1,531 million euros in the first half of this year, according to what the company has sent to the National Securities Market Commission (CNMV). This result represents a decline of 18.4% compared to the 1,876.45 million (revised figure compared to the 1,845 initially announced) that it gained in the same period last year, when it recorded 485 million capital gains from the sale of Gamesa. The reported profit results after having applied an update of 463 million to meet the deferred taxes due to the increase in corporate tax in the United Kingdom for 2023, which goes from 19% to 25% and which affects the current year. Adjusted net profit grew 8.4% to 1,844 million.

The gross operating profit (ebitda) was 5,444 million, 10.2% more, which, without including the COVID impact and the exchange rate, would be 15% higher.

85% of the total came from networks and renewables.

Network ebitda grew by 10.6%, to 2,567.9 million due to the increase in investment and energy distributed in all markets where the company operates, mainly Brazil, which now includes the Brasilia distributor.

Excluding the negative impact of the covid and the exchange rate, the ebitda of this business would have grown by 18.5%.

More information

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  • The Treasury claims 101.4 million from Repsol and 56.7 million from Iberdrola for taxes from a decade ago

  • The judge imputes an Iberdrola subsidiary for the orders to Commissioner Villarejo

The company has increased its

cash flow

(operating

cash flow

) by 8%, to 4,246 million. Likewise, it strengthened its

financial

ratios

, after reducing its adjusted net debt by more than 500 million and increasing liquidity at the end of June to 17,600 million, covering 21 months of financing needs. The group remains the leader in green and sustainable financing, with 32,409 million. The dividend per share charged to 2020 grew 5.5% to 0.422 euros per share. The company maintains its profit and dividend expectations for this fiscal year.

The group has made investments of 4,909 million, which represents 37% over the same period of 2020. These investments also contributed to consolidating an expansion strategy in activities and markets such as Europe, America and Asia Pacific. More than 90% of this investment effort was allocated to renewable energy activities (45%) and smart grids (46%). By markets, half took place in the United States (27.1%) and Spain (25.4%). Those destined for the International area gain weight and represent 17.2%, while Brazil received 14.5% and the United Kingdom, 12%.

According to the president of the company, Ignacio Sánchez Galán, “the results are the fruit of an unprecedented investment effort;

in a period of great complexity, we have accelerated investments in networks, renewables and storage, promoting economic activity and helping to create quality employment around the world ”.

Renewable capacity

Iberdrola's investment plan made it possible to increase the company's operating renewable capacity to exceed 35,600 megawatts (MW).

In the last 12 months, Iberdrola has commissioned 2,960 green MW, of which 1,950 correspond to onshore wind, 930 to solar photovoltaic and 80 to storage with batteries.

In generation and customers, the gross profit was 803.3 million (a fall of 40.9%), impacted by the high prices registered in the Spanish electricity market, the impact of the covid and the effects of the storm

Filomena

and the cold wave in Texas (United States), according to the company. The renewables business, for its part, increased its EBITDA in the period by 63%, to 2,005.2 million, driven by increased production and higher installed capacity. The area also includes the positive impact of the reversal of the hydroelectric canon of 2013 and 2014 in Spain.

The company, which plans to end the year with an additional 4,000 MW of renewable energy operation.

Iberdrola has committed to installing and putting into operation a total of 27,600 MW in the 2020-2025 period, with the aim of reaching 60,000 MW of total renewable power.

Offshore wind segregation

To face this expansion phase, Iberdrola has made purchases from suppliers totaling 18,000 million since the beginning of the pandemic.

The company's advance orders help sustain 400,000 supply chain jobs worldwide, according to the company.

One of the group's main growth platforms is in the development of offshore wind projects. In the meeting with analysts, Sánchez Galán has revealed that the group is studying the possibility of segregating this offshore wind business, which is valued at around 15,000 million. To questions from the analysts, he replied that "we are always looking at all the measures and opportunities to improve our balance sheet and financial profile." "We are analyzing the issue in detail, we have 1,300 MW in operation that generate 600 million euros of Ebitda, 2,600 MW under construction and 12,000 MW will be operational in 2030. No decision has been made, but we are analyzing it in detail," he added .

The company is making progress on the Saint Brieuc (France, 496 MW), Vineyard Wind 1 and Park City Wind (800 and 804 MW in the United States, respectively) and Baltic Eagle (Germany, 476 MW) projects, which will double its

offshore

capacity

in the next years. Iberdrola's strategy in the offshore wind segment will be driven by the auction processes planned for the short term in the main markets where it operates or is positioned: Europe (37,000 MW between 2021-2022), the United States and Asia Pacific (13,800 MW up to 2024).

In the United States, another of its growth platforms, it expects to complete the acquisition of PNM Resources before the end of the year, in which only authorization from the New Mexico regulator is pending, which is expected in the fourth quarter of the year. This operation will consolidate Iberdrola as one of the largest distributors in the North American sector and the third largest renewable energy operator.

The alliances will also contribute to advance in the process of decarbonization of the economy and the reactivation of industry and employment, according to the Government's Recovery Plan.

Iberdrola has formed alliances in renewable energies, such as Mapfre, Total and Shell;

BP, Fertiberia, Cummins, Porcelanosa, Diageo and Foresa, in green hydrogen;

and Volkswagen, Renault, Irizar and the smart recharging solutions company Wallbox, in sustainable mobility, among others.

Smart solutions for customers also point to growth opportunities, highlighting the expansion of smart-

smart

solutions.

in the field of home and electric mobility: Smart Mobility contracts almost tripled;

those of Smart Solar, more than doubled, and Smart Home and Smart Clima also grow.



Source: elparis

All business articles on 2021-07-21

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