Iberdrola breaks its investment record in June and achieves a profit of 4,134 million

Iberdrola is making steady progress on its 2024-2026 Strategic Plan. The company, which today presented its 
first-half results , has made record investments of €5,276 million, 16% more than in the same period of the previous year. Thanks to this investment effort, net profit stood at € 4,134 million in the first half of 2024. Gross 
operating profit (EBITDA) reached €9,614 million, representing a growth of 27% compared to the same period of the previous year. Excluding the sale of assets in Mexico, EBITDA stood at €7,897 million, 9% more than in the same period of the previous year.

The profit growth has been driven by an increase in the network asset base and by the new tariff frameworks in 
the United States , the United Kingdom and Brazil. In addition, the company has recorded a record renewable production and a recurring growth in hydroelectric production through storage, which has reached 3,000 GWh in 6 months in the Iberian Peninsula (25% of total hydroelectric production), which allows for an optimal integration of renewables into the system.

Another factor that has enabled operational growth has been the significant increase in the PPA (clean energy purchase agreement) portfolio with industrial clients and the improvement in the commercial markets of the Iberian Peninsula and the United Kingdom.

MORE COMMITMENT TO SOCIETY

Iberdrola has continued to contribute to creating value in all areas of society . In the first half of the year, it made purchases worth more than 7 billion euros from tens of thousands of suppliers, which has a significant pull effect on society and has supported more than half a million jobs worldwide. In addition, its contribution to public coffers worldwide has grown by 20% in the first half of the year, reaching 5.3 billion euros.

The company continues to promote its commitment to decarbonisation . Record renewable production has enabled it to reduce emissions in Europe to 26 gCO2/kWh. This means that nearly 90% of Iberdrola’s production is now emission-free. Iberdrola generates 100% emission-free energy in the United Kingdom, Brazil, France, Italy, Germany, Poland, Portugal, Greece and Bulgaria.

COMMITMENT TO THE 2024-2026 STRATEGIC PLAN

The company continues to make steady progress on its 24/26 Strategic Plan, which was presented last March. Of the 5.276 billion euros that the company has invested in the first half of the year, 56% of the investments have been allocated to the United States and the United Kingdom, 19% to the Iberian Peninsula, 15% to Latin America, and 10% to other European countries and Australia.

In terms of business, the networks area has received 51% of investments , reaching 2,708 million euros in the first half of 2024, which represents an increase of 23% compared to the same period of the previous year. It is worth highlighting the 63% increase in investments in transport networks , so that they now account for 39% of the total invested in this area. Thus, the network asset base has reached 43,300 million euros, 7% more than at the end of the first half of 2023.

Investments in renewables have grown by 10% in the first half of the year, reaching 2.167 billion euros. Thanks to these investments, the group has added 3,100 MW of new renewable energy , currently exceeding 43,400 MW worldwide. In the last 12 months, some 800 MW of offshore wind have been installed , which represents an increase of 60% compared to the same period last year, thanks to the incorporation of Saint Brieuc (France) and the first wind turbines in operation at the Vineyard Wind 1 (USA) and Baltic Eagle (Germany) farms, currently reaching 2,300 MW.

With these advances, the offshore wind projects planned in the 2024-26 strategic plan are already secured and under construction and it is expected that by 2026 4,800 new MW will be operational and will contribute 1.8 billion to the Ebitda for 2026, compared to 400 million euros in this first half of the year.

IMPROVED OUTLOOK FOR 2024 AND OPTIMAL LONG-TERM POSITION

In this context, Iberdrola ‘s chairman , Ignacio Galán, has improved his forecasts for 2024, putting net profit growth in the double digits (excluding any capital gains from asset rotations) from €4,803 million in 2023, thanks to the contribution of new investments in networks, tariff reviews in the US, the UK and Brazil and the 1,600 MW of renewable energy under construction .

The chairman stressed that the company is well positioned to take advantage of new opportunities in all areas of business. According to international organisations , global investment needs in networks will double by 2030, which is why the company is already finalising investment plans in transport and distribution in the United Kingdom and the United States for the next decade.

Furthermore, in the current market context, Iberdrola has more than 100 million kWh of storage , plus 20 million kWh under construction and 150 million kWh for future projects to capture the value of renewables and reduce price volatility . Furthermore, given the exponential increase in electricity needs for data centres, Iberdrola is in a unique position, as it already has 8,000 GWh committed per year to large technology companies.