Financial Highlights
- Net Profit of €4.34 billion (+11.7%), driven by strong international performance (particularly in the United States and Brazil).
- Record investments of €10.73 billion (+13%), with 90% allocated to networks and renewables.
- EBITDA increased by 10% to €13.23 billion, thanks to geographic diversification, with the EU contributing 39%, the US 20%, the UK 15% and Latam 25%.
- Operating Cash Flow reached €11.12 billion, up +25%.
- Continued positive progression of financial ratios, with FFO / Adjusted Net Debt improving 240 basis points to 25.4% thanks to cash flow generation.
- The Net Debt figure of €43.7 billion below the estimate of €45 billion presented at the Capital Markets Day in 2022.
- Liquidity of €23.5 billion covering 26 months of financing needs with an average life of debt above 6 years.
- Supplementary shareholder remuneration of €0.31/share to be proposed to the AGM, reaching a total dividend of €0.49/share.
Business Model Resilience in the challenging macro context
- Results in-line with guidance issued in February 2022 – prior to the invasion of Ukraine, spot market volatility and an inflationary spiral – mainly thanks to geographical diversification, where growth in the US and Brazil offset performance in Spain.
- Iberdrola has already sold 90% of production in Spain in 2023, 70% in 2024 and 50% in 2025.
- 100% of equipment supplies secured for 2023, with prices closed or hedged, mitigating impacts of raw material cost increases and exchange rates.
Operational Highlights
- Iberdrola invested €10.73 billion in 2022, a 13% increase.
- 90% of investment allocated to renewables and smart grids.
- 38% of investments directed to the EU, 25% to the US, 20% to Latam, 13% to the UK and 4% to Australia and others.
- Regulated asset base increased to €39.2 billion (+19%) and renewable capacity reached 40,000 MW.
- The Group has €6 billion of investments in renewable projects that will be operational in 2023-25 (€3.6 billion in offshore wind in the US, Germany and France).
- 80% of owned generation capacity is now emission-free.
ESG Performance
- Sustainable Purchases: A record of €17.8 billion supplier purchases, supporting more than 400,000 jobs in communities across the world.
- Global Tax contribution: €7.5 billion in countries where Iberdrola operates.
- Record job creation and economic activity: 4,700 new hires.
- Upgrading Decarbonization Targets: Carbon neutral by 2030 in Scope 1 and 2, and Net Zero in all three scopes before 2040.
- New Biodiversity Plan: Targeting to have net positive impact by 2030.
- Record reduction in emissions, to only 59 gCO2/kWh in Europe (1/4 of EU average).
2023 outlook
- 2023 Net Profit outlook: growth of 8-10%, or mid-single-digit growth if the new revenue tax in Spain is included.
Iberdrola continues to take firm steps in its commitment to accelerate the energy transition and reduce dependence on fossil fuels. The company made historic investments of €10.73 billion, 13% more than in the same period last year, despite inflationary pressures and supply chain challenges. 90% of the investment was in renewables and smart grids to accelerate electrification and promote energy autonomy.
38% of investment went to the European Union – close to €3 billion in Spain, the country that received the most investment, and €1.2 billion in other countries such as Germany, France and Portugal. Some 25% of the investment was made in the United States, 20% in Latin America, and 13% in the United Kingdom. The remaining 4% went to other countries, such as Australia. As a result of the investments already made, the group has closed 2022 with an installed renewable capacity of around 40,000 MW worldwide, consolidating its installed capacity as one of the cleanest in the world, as 80% is emission-free. The company also has 7,675 MW under construction that will be operational in the next four years. Of these, almost 3,500 MW correspond to offshore wind projects in the United States, the United Kingdom, Germany and France.
The network asset base increased by 19% compared to the same period of the previous year, reaching €39.2 billion. This asset base is evenly split between the US, with 31% of the total, the UK and Spain, with 24% each, and Brazil, with 21%.
