Iberdrola
Financial Highlights
- Underlying EBITDA of €10.71 billion in 2020 (+8%), excluding the impacts of COVID-19 and exchange rates
- 75% of EBITDA was contributed from regulated activities (Networks and Renewables)
- 76% from a A-rated countries
- Offshore wind power contributed €585 million after growing by 72%
- Reported Net Profit of €3.61 billion, up by 4.2% (+10%, excluding impact of COVID-19)
- Gross investments grew by 13.3% to €9.24 billion. Of this amount, 92% was concentrated in the Networks and Renewables businesses
- Improved results allow Iberdrola to propose shareholder remuneration for 2020 of €0.42 gross per share, a 5% increase on the prior year
- In full year 2021, the Group expects to achieve net profit of between €3.7 billion and €3.8 billion. The dividend is expected to be €0.44 per share
Operating Highlights
- Despite the challenges brought about by the pandemic, the company installed 3,000 new megawatts (MW) of renewable generation capacity in 2020. Further installations in Q1 2021 have taken the Group’s total installed renewables capacity to 35,000 MW
- Iberdrola continued to strengthen its future growth prospects, increasing its project pipeline by 25 GW to 74.4 GW. The company has 17.4 GW of green projects under construction and development (8.7 GW of solar facilities, 4.5 GW of onshore wind, 2.6 GW of offshore wind, 1.2 GW of hydroelectric and 400 MW of batteries)
- Continued investment in Networks across all target markets. The acquisitions of PNM Resources in the US and CEB-D in Brazil will increase the asset base value to €36 billion by the end of 2021 (€31 billion in 2020)
ESG
- Iberdrola’s emissions reduced by 11% in 2020 to 98 grCO2/kWh, reaffirming its commitment to become a carbon neutral company in Europe by 2030
- In 2020, its emissions were between half and nearly three times lower than those of two of its main global competitors
Strategy
- Iberdrola is building on its €75-billion investment plan to 2025, with a commitment for investments to reach €150 billion by 2030. This will deliver:
- Installed generation capacity of 60 GW in 2025 and 95 GW by the end of the decade
- A regulated asset base of €47 billion in 2025 and €60 billion in 2030
- Iberdrola also anticipates continued growth in its customer base. In 2020, The Group registered 43.8 million contracts, which it plans to increase to 48.5 million by the end of 2021. This will rise to 60 million in 2025 and around 70 million by 2030
- This investment programme will enable Iberdrola to reach net profits of €5 billion by 2025 and around €7 billion by 2030
Ignacio Galan, Chairman of Iberdrola, said: “Our balance sheet is supporting economic recovery, with record investments of more than €9.2 billion and €14 billion awarded to over 22,000 suppliers, the largest in our history, to support 400,000 jobs in our markets. In this decade, we plan to invest €150 billion to triple our renewable capacity and double our network assets.”
ScottishPower Full Year Results
- Overall EBITDA £1,817m (+£350m, +24%)
- UK’s First co-generation site at Carland Cross, wind, solar and battery storage
ScottishPower has announced that work will commence this year on up to 10MW of solar generation at Carland Cross windfarm in Cornwall. The site, one of the oldest windfarms in the UK, was repowered to 20MW in 2013 and also hosts 1MW of battery storage. It will be the first site to support and operate the three technologies.
ScottishPower Renewables
EBITDA £674.6m (+£214m, +46%)
Year on year increase is largely attributable to the final commissioning of East Anglia One, 714MW, 102 turbine offshore windfarm. Much of the installation and connection work was completed during the pandemic, with ScottishPower transforming the construction process to get the job done. Beyond the additional offshore generation, electricity production increased across ScottishPower’s onshore and offshore sites but the impact was offset by decreased energy prices.
SP Energy Networks
EBITDA £889.8m (+£23m, +2.7%)
Whilst there has been a Distribution revenue reduction as a result of COVID19 impact on demand (-4%), the returns for SP Energy Networks are on-target as the business delivers the RIIO-ED1 distribution investment programme, which runs until 2023, and the RIIO T1 Transmission investment programme until 2021.
Liberalised (Retail Business)
EBITDA £220.0m (+£125m; +130%)
The Liberalised business EBITDA has increased in comparison to 2019 which was adversely impacted by Ofgem retrospectively changing the indexation period of the Price Cap.
ScottishPower retail customer numbers at end December are 4.7million, flat on the previous year.
Business margins were impacted by COVID19, with electricity volumes 13% lower than the previous year.
Total volumes versus prior year: Electricity -6% and Gas -3%.
Commenting on the results, Keith Anderson, ScottishPower CEO, said:
“As we have all spent much more time at home, energy has become even more important. At ScottishPower we’ve had to pull together and work together with our employees, customers and suppliers to support the communities we serve.
“Throughout the pandemic we supported over 300,000 of our customers by offering help with their bills and options on how to pay.
“Energy Networks worked tirelessly to support the communities we serve at a time when they relied on our network like never before and our Renewables business managed to complete the construction of our biggest offshore windfarm, safely, during lockdown. An incredible achievement that demonstrates the outstanding commitment and flexibility of my colleagues across ScottishPower.
“The outlook for ScottishPower remains strong. Last year, ScottishPower committed to investing £10bn in in the UK by 2025 to help unlock Net Zero. This represents the highest level of sustained investment by ScottishPower in the UK and a boost to the Green Recovery.
“ScottishPower’s unique position in the UK, operating across Networks, Renewables and Retail sectors – means every aspect of our businesses can support the race to Net Zero and the Green Recovery as we emerge from the pandemic.
“We’re investing more than £6m every working day every day on projects including smart grids and windfarms. Today we have announced the world’s first hybrid energy park at Carland Cross in Cornwall. One of the UK’s first operational windfarms, it has already been repowered, seen the construction of a super battery and will now see solar co-generation at the site.
“We are committed to doubling the amount of green electricity we generate by 2025, and this will be delivered through innovative projects like Carland Cross, that will fully realise the potential of existing sites and by delivering our ambitious UK development pipeline.”
