The electric has earned 2,408 million euros, 10.2% less
With a negative impact of the decree of 85 million euros during the first 15 days of September due to the Government’s ‘hatchet’ of nuclear, hydraulic and renewables due to the rise in the price of gas, the president of Iberdrola, Ignacio Sánchez Galán, has announced that “after the measures announced yesterday (by the Government) we don’t expect that (the impact) it stays in the next few months. ”
In the conference with analysts, the utility company explained that it has “all the energy available with fixed price contracts” so will not be affected for the government cut, after it pardoned all the generation that was negotiated with bilateral contracts at a fixed price. “We hope that the regulatory context improves in Spain after the measures announced yesterday by the Government,” added Galán at the end of his speech, considering the conflict that he had maintained for months with the Executive.
In addition, the president of Iberdrola has pointed out that in Spain 76% of consumers (18 million), both industrial and residential, have contracts at fixed prices, and there would only be 10 million users with regulated tariffs (PVPC) that depend on the wholesale market, as well as 500,000 industrial clients and public administrations with contracts indexed by “own decision”.
The company defends that high electricity prices in wholesale markets have impacted on their Comercial activity in Spain and the United Kingdom by having, in both countries, their energy sold at a fixed price at lower prices. Specifically, Iberdrola says that it has 100% of the energy sold for this year and 96% for 2022 in Spain, as well as in the United Kingdom, where in the two periods it reaches 100%. In addition, it points out that purchases for 2021 and 2022 are “covered by the current price tensions of raw materials.”
The electric has earned 2,408 million euros, 10.2% less than in the same period of the previous year and blames “high energy prices, new taxes and extraordinary lower prices” for the fall. Adjusted net profit, without recurring items, grew by 5.2% to 2,688 million euros. The cut in profit points to impact of deferred taxes in the UK due to the rise in companies from 19% to 25% since April 1, 2023 (from 453 million negative), the coronavirus (123 million euros less) and the 85 million due to the cut by the Executive for gas; as well as the extraordinary minors from the sale last year of Siemens Gamesa (485 million in 2020 profit). Although this year 382 million euros are also included in positive by the reversal of the hydraulic canon which the Supreme Court annulled.
Gross investments grew 6% in the period and exceeded 7,000 million euros (including 409 million euros of non-organic investments), concentrating more than 90% of them in the Networks and Renewables businesses.
The board of directors of Iberdrola has also appointed Armando Martínez, until now Director of Networks, as new Business Director, replacing Francisco Martínez Córcoles, with effect from November 1. The latter, appointed in 2014, has been re-qualified as another external director with effect from November 1, 2021.
The council has also appointed Elena Leon Muñoz Director of the Networks business of the Iberdrola group, replacing Armando Martinez, with effect from November 1, 2021, from which time León Muñoz will be part of the company’s senior management. In addition, the board has agreed to appoint, at the proposal of the chairman and CEO, the director Anthony Luzzatto Gardner second vice-chairman of the board of directors, with Juan Manuel González Serna becoming the first vice-chairman.