Energy provider Iberdrola, the multinational utility company headquartered in Spain, exceeds expectations again amidst rising electricity prices
Iberdrola has once again surpassed its own goals, both in profit, with earnings surpassing €4.8 billion in 2023, marking a historic record for the company and exceeding the previous year’s results by 10.7%. Additionally, the company’s annual gross investment nearly reached €11.4 billion, representing a 6% increase. Not even the normalization of electricity prices after a historic surge has dampened the strong performance of Spain’s leading electricity provider, which, in its latest earnings presentation, has once again criticized the tax policies of Pedro Sánchez’s government.
“Spain has the highest tax pressure,” lashed out Ignacio Galán, the company’s chairman. Specifically, the company reported a 99% increase in tax payments in Spain between 2022 and 2023, reaching €1.703 billion by the end of 2023, “which accounts for 86% of the group’s total increase in taxes.”
“Even without the two temporary taxes, taxes in Spain represent over 90% of the net operating expenses in Spain,” the group reproached, referring to the cap on gas and the levy on sector income, as specified by Galán in this morning’s analyst presentation. “It makes no sense; the volume of national and regional taxes makes the country’s conditions unattractive for investment,” remarked the electric company’s president.
The group’s gross operating profit (EBITDA) grew by 9%, reaching €14.417 billion in 2023. As for the 11% increase in net profit, the company specified that the improvement includes two non-recurring items in the fourth quarter totaling €141 million, specifically, the effects of efficiency plans (€90 million) and a provision expected to be recovered in 2024 (€51 million).
Buoyed by the strong results, the company has given a significant boost to dividends. The electric company’s Board of Directors will propose to the Shareholders’ Meeting a 10.8% increase in investor remuneration, thanks to a supplementary dividend of €0.348 gross per share, enabling the company to distribute €0.55 per share from the 2023 accounts.
The group’s prospects for the next year are very positive. Regarding investments, the company has set a target of €12 billion for this fiscal year. Additionally, Iberdrola has reported that it has already sold 90% of its energy for 2024 through bilateral contracts. Iberdrola is a multinational utility company headquartered in Spain. It is one of the largest energy companies in the world.
