Iberdola, the Spanish energy group, resists Covid and closes the first 9 months of 2020 with a profit growing by 4,7% to 2,68 billion and investments increased by 23% to 6,64 billion. Speaking of investments, Iberdrola also confirmed the goal of reaching 10 billion in investments by the end of this year, despite the complicated scenario. Furthermore, the news of an important acquisition has recently arrived: the US subsidiary of Iberdrola, Avangrid, has in fact closed the agreement to take over 100% of Pnm Resources (electricity supplier based in Albuquerque, New Mexico) for $4,32 billion. "The operation entails an Enterprise Value of approximately 8,3 billion dollars", specifies the Iberian group in a note.
Integration with Avangrid will create one of the largest utility companies in the US, with 10 regulated electric companies in 6 states (New York, Connecticut, Maine, Massachusetts, New Mexico and Texas) and the third largest renewable energy player in the United States with a total presence in 24 states. The combined company will have assets of more than $40 billion, approximately $2,5 billion in EBITDA, and net income of $850 million. “The operation – commented Ignacio Galán, President and CEO of Iberdrola – is in line with the strategy we have followed for over 20 years. Non-hostile transactions, focused on regulated activities and renewable energy, in countries with good credit ratings and legal and regulatory stability, which offer opportunities for future growth”.
Going back to 2020 accounts, Iberdrola also recorded an Adjusted EBITDA up 3,2% to 7,56 billion. "The growth - explains the note - was supported by theincrease in installed renewable capacity and from the operational performance of the business of renewables and energy generation and supply”. As regards the estimated impacts of Covid, however, they amount to 308 million and 203 million in terms of net operating result (EBIT) and net profit, respectively, as a result of the effect on demand and provisions for insolvencies. The group is seeing a gradual normalization of energy demand and prices in Spain and the UK, while countries such as the US and Brazil are making progress in implementing recovery regulations.
Finally, Iberdola continues its green strategy: CO2 emissions have been reduced by 10% compared to September 2019, at 98 gCO2/Kwh. The number of employees hired during the year is almost 3.000. Numerous recognitions have been given of the company's commitment to diversity and inclusion, such as The Planet Mark, in the United Kingdom, the fifth position in the world ranking of the most sustainably managed companies by "The Wall Street Journal" and Forbes Just, in the United States.
