Iberdrola reports 20% year-on-year profit growth as it meets 2022 target early, installs 3.5GW of renewables in 2021

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Iberdrola chairman Ignacio Galán (pictured) said accelerated investment has helped the company deliver higher-than-expected growth. Image: Iberdrola

Spanish utility Iberdrola reported a €12 billion (US$13.6 billion) operating profit in 2021, which was 20% higher than 2020, and met its gross profit forecast for 2022 one year early, as its installed 3.5GW of renewables in 2021.

In its full-year 2021 financial results released today, the Bilbao-based company recorded an EBITDA of €12 billion, which it said was boosted by renewable energy production. However, it suffered from retail activity in the UK and Spain where it decided to maintain fixed prices despite huge volatility in European power markets.

“Had prices to customers not been maintained, this figure would have increased substantially,” the company claimed.

The 20% growth in profits for 2021 means the company has achieved its gross profit forecast for 2022 one year early, its financial results said.

Its net profit rose 8% on 2020 to €3.88 billion, which was helped by good operating performance in the US and Brazil and new installed capacity.

Meanwhile, the company also increased its investments to €9.94 billion – up from €7.03 billion for the first nine months of 2021 – of which it allocated more than €4.3 billion to renewables.

This saw it install 3.5GW of new renewables last year, bringing its total installed renewables capacity to 38GW worldwide. Renewable capacity under construction exceeds 7.8GW.

Over €4.4 billion of investment was attributed to smart grids, a 23% growth compared to year-end 2020, in line with the group’s strategy of strengthening key infrastructure and supporting electrification. As a result, the company’s regulated assets stand at €33 billion, it said.

The US (€2.73 billion) and Spain (€2.38 billion) accounted for more than half of the investments.

“The acceleration of investments has helped us to continue to deliver strong growth at a higher rate than expected,” said Iberdrola chairman Ignacio Galán.

In February last year, the company announced plans to double its spend on renewables, taking its investment from €75 billion (US$91 billion) by 2025 to €150 billion (US$182 billion) by 2030.

In its guidance for 2022, Iberdrola said its net profit is forecasted to reach between €4 billion and €4.2 billion – a 12% increase in profits on 2021 when considering the higher end of expectations.

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