Iberdrola obtained a record net profit of 3,610.7 million euros in 2020, which represents a 4.2% increase in 2019 earnings in a complex year marked by the coronavirus health crisis. The growth would be 10%, if the impact of Covid-19 is excluded, which was 238 million euros during the year. In 2021, the company estimates to reach a net profit of between 3,700 and 3,800 million euros, informed the energy company.
The progress registered in all the activities of the group placed its underlying gross operating profit (Ebitda) at 10,715 million euros in 2020, a growth of 8%, if the impact of 218 million from Covid-19 and the effect of the exchange rate, which was 487 million euros. By business, 75% of the total amount comes from regulated areas (networks) and renewables, while, by geography, 76% comes from countries with an ‘A’ rating. Offshore wind contributes 585 million euros in this chapter, after growing by 72%.
Group investments reached record figure of 9,246 million euros in the year, 13% more than in the previous year. 91% of this volume was used for the development of new renewable projects and electrical networks to accelerate recovery, in line with the group’s strategy.
The Chairman of Iberdrola, Ignacio Sánchez Galán, He stressed that the group has put its balance sheet “at the service of recovery, with record investments of more than 9,200 million and awards to more than 22,000 companies for 14,000 million euros, the largest in our history, to sustain 400,000 jobs at our suppliers. ” “In this decade, we plan to make investments of 150,000 million euros to triple our renewable capacity and double our network assets,” he added.
This growth in results allows Iberdrola to propose a shareholder remuneration out of 2020 of 0.42 euros per share, 5% more than in 2019. Thus, the board of directors will propose at the shareholders’ meeting the approval of a complementary dividend distribution of 0.252 euros per share, to be added to the 0.168 euros paid as an interim dividend. For 2021, the company expects the distribution of a dividend of 0.44 euros per share.
The company also improved its main financial ratios and strengthened the strength of its balance sheet. In this way, the ‘cash flow’ or operating cash flow stood at 8,191.6 million euros, after growing by 1.6%, and the debt was reduced by 6.4%, to 35,142 million euros.
Despite the complex context of the pandemic, the group chaired by Ignacio Sánchez Galán installed 4,000 new megawatts (MW) over the past year -almost 3,000 MW renewable- and reached 35,000 MW of renewable installed capacity. In this way, Iberdrola’s emissions were reduced by 11% in 2020, to stand at 98 grCO2 per kWh, confirming its commitment to become a carbon-neutral company in Europe by 2030. It also increased its portfolio of projects in 25 GW, up to 74.4 GW. Thus, energy already has 17.4 GW green under construction and development, of which 8.7 GW correspond to new solar installations, 4.5 GW to onshore wind, 2.6 GW to offshore wind, 1, 2 GW to hydroelectric, and 400 MW to batteries.
In this drive for renewables, offshore wind was confirmed as one of the growth vectors of the group, which has 1.3 GW installed of this technology and will triple it with the current construction of 2.6 GW, without location costs. The current offshore portfolio totals 19 GW, of which 9 GW are ready for construction and 10 GW planned for development in Sweden, Japan, Poland and Ireland. In 2020, offshore wind projects contributed 585 million euros to Ebitda, after growing by 72%; contribution that will amount to 2,300 million euros in 2030.
By markets, the worst performance in Spain was offset by international growth, which now contributes two-thirds of Ebitda. Electricity demand in the Iberian Peninsula fell by 5.1% conditioned by the Covid-19 crisis. Thus, Iberdrola in Spain reduced its Ebitda by 5% and its net profit by 13% in 2020. Despite this evolution, investments increased by 21%, to 2,100 million euros.
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