Iberdrola obtained a net profit of EUR3.4 billion in 2019, a record high which represents an increase of 13% compared to the previous year.
This result was driven by record EUR8.16 billion investments delivered during the year (+32%).
Gross operating profit, or EBITDA, exceeded EUR10 billion for the first time (EUR10.1 billion), an increase of 8.1% on 2018.
Group Chairman Ignacio Galan pointed out that 'these results reflect the company's broad strategic vision and its capacity for delivery, which have enabled us to be 20 years ahead of the current energy transition.'
Of the total investment amount, 44% went to networks and 41% to renewables, two areas which experienced growth of 19% and 85% to EUR3.59 billion and EUR3.34 billion respectively. As a result, the company installed 5.500 new megawatts (MW) in all markets during 2019, compared with the 1,000 MW annual average in previous years. In addition, the company is currently building 9,000 MW in Spain, Portugal, the UK, the US, Mexico, Brazil and other new markets such as Australia, scheduled to be commissioned in 2021 and 2022. The company also has a project pipeline of over 40,000 MW worldwide in different stages of development.
The investments made in the networks business have increased the value of the group's regulated assets to EUR31 billion, 6% more than in 2018 - all in an environment of new regulatory frameworks that contribute greater stability.
SHAREHOLDERS, EMPLOYEES AND SOCIETY PLAY CENTRE STAGE
When presenting results, Ignacio Galan also stated how posting record profits was compatible with the group's social dividend: 'Iberdrola demonstrates year after year that its sustainable business model creates value for shareholders, employees and society at large. In 2019, we hired 3,500 people, purchased EUR20 billion worth of goods and services from 22,000 suppliers and paid EUR14 billion in taxes.'
For twenty years now Iberdrola has been centred on environmental, social and governance (ESG) criteria while being absolutely committed to ethics, transparency and good corporate governance. This commitment was reinforced with the inclusion in its By-laws of the United Nations' Sustainable Development Goals (SDGs) under the Agenda for 2030.
The company managed to offer a 37% revaluation of the share and dividends paid in the year to its more than 600,000 shareholders while growing its dividend by 47.6% over the past five years.
As regards its employees, Iberdrola continues to be a benchmark for stable, quality jobs. Having hired almost 3,500 people in 2019, it will continue to support employment, with some 5,000 new recruits in 2020. It is worth noting that 99% of the company's workforce has permanent contracts. Furthermore, the company has dedicated 55 hours of training a year to each employee and has continued to bet on young talent through its Early Career programme, having granted scholarships to some 900 postgraduate students over the past few years. It has also strengthened ongoing dialogue with trade union representatives, as shown by the 36 labour agreements reached along the year and its inclusion in the Bloomberg Gender Equality Index for the third consecutive year.
Iberdrola invested EUR270 million in R&D+i in 2019, thus placing itself among the top three of the sector worldwide and its international volunteer programme had 7,500 participants. Overall quality of service improved by 10% and its CO2 emissions remained two-thirds below those of its peers in Spain and Europe.
POSITIVE BUSINESS PERFORMANCE BOOSTS EBITDA
Gross operating profit (EBITDA) reached EUR10.1 billion in 2019, representing an increase of 8.1% compared to 2018. This positive development is particularly significant in view of the fact that the company recorded the lowest hydroelectric production in the past few years.
By businesses, the networks area posted EUR5.26 billion EBITDA, 7.1% up on previous year, driven by good performances in Brazil and the UK, thanks to the contribution of new investments in transmission and distribution assets.
The generation and retail area showed a 21.1% EBITDA increase to EUR2.46 billion in the 12 months. This good performance was underpinned by the 2.6-GW in new generation capacity installed in Mexico, increased production growth in Spain and the good performance of global energy retail and digital services activities.
At EUR2.38 billion, Renewables EBITDA was 2.4% down, with increased wind production partly offsetting low hydroelectric output, particularly in Spain.
Contact:
Juan Llobell
Tel: +34 91 784 32 32
Email: comunicacioncorporativa@iberdrola.com
IBERDROLA, S.A. 
