Iberdrola recorded a net profit of €2,824 million in 2009, sustained by the group’s success with regulated business and renewables throughout the year, which together counted for two thirds of the company’s total operating profit.
The company increased EBITDA by 6.3% to €6,815.3 million and recurring net profit by 7.2% to €2,602 million (excluding extraordinary revenues). EBIT rose 5.8% to €4,509.2 million, gross margin by 8% to €10,788 million, and operating cash flow by 11.2% to €4,873 million.
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Regulated businesses and renewables contributed two-thirds of total group operating profit, with an 11.8% rise in renewables EBITDA. By geographical area, energy business in Spain contributed 35% to the company’s EBITDA.
These results were achieved amid falling demand and price erosion for energy raw materials. Business was also affected by the economic recession, difficulty in accessing financial markets and negative sterling exchange rate movements.
The company has also adjusted 2009 investments in line with the economic environment, investing a total of €4,221 million. A comfortable liquidity situation (€9 billion) has also been achieved, alongside an ‘A’ credit rating, which the company must now aim to keep.
Iberdrola reduced its financial gearing from 50.3% at the beginning of 2009 to 46.2% at the end of the year (excluding the tariff deficit impact). Net debt (excluding the tariff deficit) came to €24,894 million, a decline of 4.2% on the €25,998 million at the end of 2008, while equity rose 13% to €29,026 million.
These financial results come the day after the company announced it had won a €27 million contract for an 8MW power plant in Puglia, south-east Italy.