Iberdrola, a global energy leader, has reported impressive financial results for the third quarter of 2023, showcasing a remarkable 17% increase in net profit compared to the same period in 2022. The surge in net profit brought the figure to €3.64 billion for the third quarter, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a substantial rise, reaching €10.8 billion, reflecting a 13% growth compared to the corresponding period in 2022.
Over the past 12 months, Iberdrola has made substantial investments, channeling €11 billion into expanding its networks and bolstering its renewable energy capacity. Notably, the company increased its renewable capacity by 3,100MW within the last year, pushing the total capacity to 41,300MW.
With almost 8,000MW currently under construction, Iberdrola has secured 100% of the supply chain contracts for projects with financial investment decisions (FID) in place. Moreover, the company has established framework agreements for all other capacity additions scheduled for 2025.
Iberdrola is making significant strides in offshore wind energy, with 3,500MW of offshore wind capacity currently in construction, representing investments exceeding €10 billion. The company expects to reach 3,100MW of capacity by 2025 and an impressive 4,800MW by 2026/27.
Crucially, all offshore wind projects are on track for timely delivery, with a fully secured supply chain. Furthermore, 100% of the energy to be produced is guaranteed through Contracts for Difference (CfDs) or Power Purchase Agreements (PPAs) spanning 15 to 20 years.
The company projects that the EBITDA contribution from offshore wind will grow substantially, reaching €1.9 billion by 2026/27, compared to €700 million in 2022, reflecting the substantial expansion of its offshore wind portfolio.
Iberdrola's commitment to offshore wind extends beyond 2027, with a mature pipeline of projects secured at competitive costs (€60/kW). This includes 3,600MW of consented projects in the UK and the US, in addition to rights to seabed locations with a capacity of 8,000MW.
Executive Chairman of Iberdrola, Ignacio Galán, remarked on the company's strategy, stating, “The execution of the strategy presented last November is allowing us to grow, preserve financial strength, and increase dividends.”
