Iberdrola, the leading Spanish energy giant, announced their full-year 2022 results today, February 22. Despite challenging market conditions, Iberdrola’s geographic diversification has enabled them to deliver stable growth and a record net profit of €4.34 billion. The profit is driven by strong international performance in the United States and Brazil, even though their Spanish division experienced a 19% decline. Iberdrola invested a record €10.73 billion in 2022, a 13% increase, with 90% of the investment allocated to renewable energy and smart grids.
The company’s focus on renewable energy has paid off, with 80% of their owned generation capacity being emission-free. Furthermore, Iberdrola has 8 GW under construction that will be operational in the next four years, with almost 3.5 GW corresponding to offshore wind. They have invested €6 billion in renewable projects that will be operational from 2023 to 2025, with €3.6 billion of that being invested in offshore wind projects in the US, Germany, and France. Iberdrola’s business model is resilient in a challenging macro environment due to their geographical diversification.
Apart from investing in renewable energy, Iberdrola has made sustainable purchases of €17.8 billion to support over 400,000 jobs across the world. The company has also contributed €7.5 billion to global taxes in countries where they operate and created 4,700 new jobs. In terms of ESG performance, Iberdrola is on track to be carbon neutral by 2030. The company is also targeting to have a net-positive impact on biodiversity by 2030.
Iberdrola’s financials have been strong with €13.23 billion in EBITDA, an increase of 10% compared to the previous year. Iberdrola’s 2023 net profit outlook is expected to grow by 8-10%. The company has already sold 90% of production in Spain in 2023, 70% in 2024, and 50% in 2025. They have also secured 100% of equipment supplies for 2023, with prices closed or hedged, mitigating impacts of raw material cost increases and exchange rates.
Iberdrola’s historic investments in renewable energy and smart grids are paying off and their strong financial performance is evidence for their strategy. Iberdrola‘s focus on sustainability has not only resulted in a positive impact on their financial bottom line but also on communities worldwide and a net zero future of our planet.