Iberdrola's profits fall 26% in Spain, but it grows abroad and earns 2,075 million euros

Iberdrola has presented the results for the first half of 2022, a period marked by the energy crisis, especially after the Russian invasion of Ukraine.

In these six months, the company's net profit fell 26% in Spain, but

, to 2,075 million euros.

The firm attributes this disparity to the cost of energy in Spain.

These "high prices", they explain in a press release, "have not been passed on to customers with previously agreed fixed price contracts".

However, they are offset by "good results in international business."

Specifically, the company highlights the

", something that already happened the previous quarter.

In the entire semester, an operating cash flow of 5,560 million euros was generated, 31% more than in the same period of 2021

It also increased, although to a lesser extent (6.4%), the remuneration to shareholders charged to the results of the previous year, which was 0.449 euros.

With regard to the war context, Iberdrola emphasizes that it does not depend on Russian gas and oil (90% of its production in Europe, remember, is free of emissions).

In addition, they boast an important financial cushion: they have obtained 8,000 million euros of financing in these months "with favorable conditions", they have signed with 24 entities "a new sustainable credit line for 2,500 million euros at a historically low rate" and It has also closed a green loan for 550 million euros with the EIB.

As they say, their liquidity (27,000 million euros) would allow them to "cover 27 months of financial needs without resorting to the market."

In this sense, the company recalled in this results presentation its large portfolio of renewables and its investments made to increase it.

So far this year, 4,741 million euros have been invested (5% more than in the same period of 2021) and in the last year

.

90% of this figure has been allocated to renewables and smart grids and 23% of the investment for the semester (1,100 million) has been allocated to Spain, which has received somewhat less than the United States (1,246 million), but more than the two other leading markets, Brazil (837 million) and the United Kingdom (801 million).

Thus, in these 12 months

including photovoltaic (1.2 GW), onshore wind power (996 MW) and hydroelectric power (1 GW), in addition to 116 MW in batteries.

In total, it exceeds 39,000 'green' MW globally and 95,000 MW in total in the portfolio, including 10.8 GW under construction or secured with contracts.

The president of Iberdrola,

, explained that these investments continue to increase "to reinforce energy autonomy and accelerate the green transition, reducing dependence on fossil fuels."

At a time when the Government has announced a tax on electricity companies for the extraordinary benefits derived from the energy crisis, the company also took the opportunity to recall that it is "one of the companies most committed to public coffers" and in 2021 it contributed " 7,836 million euros globally, 5% more than the previous year, that is, 361 million euros more".

Around half of the amount (3,469 million) corresponds to Spain.

All in all, these results, together with their expectations for the second half of the year, are consistent with the company's prospects of reaching a profit of between 4,000 and 4,200 million in the current year.

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