Iberdrola will invest €47 billion in energy transition in 2023-2025 and hopes to increase net income outlook in 2025. The investment in 2026-2030 will exceed 100GW of capacity and €65 billion of network assets.
A predicted growth
Iberdrola announces growth based on investments in electricity networks and a selective approach to renewable energy. For the energy transition, the company wants to improve the quality of results and protect the strength of the balance sheet. It is through geographic diversification and a conservative financial model that it hopes to achieve this result.
The Spanish giant will invest €27 billion, or 57% of the amount, in electricity networks. This investment will increase the asset base to €56 billion by 2025. These will provide predictable frameworks and protection against macroeconomic uncertainties.
Iberdrola will invest €17 billion in renewable energy. The goal is to provide 52GW of renewable energy capacity by 2025. Projects that would have the best risk/return profile and a higher quality pipeline.
Increasing profits
Thus, more than 80% of the investments will go to A-rated countries. In addition, these countries will have stable regulatory frameworks and ambitious electrification targets. As a result, geographic diversification will improve.
The energy company’s net profit should reach €5.2 to €5.4 billion by 2025. Iberdrola is targeting earnings before interest, taxes, depreciation and amortization (Ebitda) of between €16.5 billion and €17 billion by 2025. Shareholders should receive between €0.55 and €0.58 per share by 2025.
With a payout ratio of between 65% and 75%, Iberdrola expects to reaffirm its prospects in 2030. These would result from market growth and accelerating electrification. A dividend floor is positioned at €0.46 in 2023-2024 and €0.50 in 2025.
