Iberdrola increases 2021 net profit 8% aided by renewables growth

The East Anglia One offshore wind farm. Image credit: ScottishPower Renewables/Iberdrola

February 23 (Renewables Now) - Spanish electric utility Iberdrola SA (BME:IBE) on Wednesday reported a net profit of EUR 3.88 billion (USD 4.4bn) for 2021, up 8% from 2020, helped by growth in renewables.

The company achieved strong operating performance in the US and Brazil, which more than made up for the negative effect of high energy prices on the generation and supply business in Spain and the UK.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 20% to EUR 12 billion. In the electricity generation and supply business, renewables capacity expansion resulted in a 7.9% rise in production, with a significant contribution from offshore wind as East Anglia 1 went online in April 2020. The networks business also delivered a solid performance.

Iberdrola highlighted the recond investments of EUR 9.94 billion it made last year. The investments, up 3% on the previous year, were mainly directed to smart grids and renewables. The utility continued to ramp up renewable capacity additions during 2021 and installed 3,500 MW -- 1,181 MW solar photovoltaic, 1,141 MW onshore wind, 998 MW hydroelectric and 162 MW of batteries -- taking its total installed renewables to 38,000 MW. In addition, there is 7,800 MW, including 2,600 MW of offshore wind, under construction.

"The acceleration of investments has helped us to continue to show strong growth at a higher rate than expected. These results reflect the success of a sustainable model and encourage us to continue working towards the decarbonisation of the economy,” said Iberdrola chairman Ignacio Galan.

On the back of the 2021 results and the outlook for the renewables business, Iberdrola reaffirmed its net profit forecast for 2022 of between EUR 4 billion and EUR 4.2 billion.

(EUR 1 = USD 1.134)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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