2023-04-26 20:43:19
The Chairman of Iberdrola, Ignacio Sánchez Galán, arrives at the General Shareholders’ Meeting on Friday with the objectives met. This Tuesday he presented results for the first quarter where the company achieved net profits of 1,485 million on the back of its 10,400 million investment and the improvement in the national and United Kingdom markets.
Galán has the ‘conclave’ of the Basque electricity company under control, so it is taken for granted that will revalidate his position for the next four years. The company has spent a few weeks with the share trading at record numbers and pulling the Ibex. The shareholder is satisfied with his results, he sees that his investment has a safe return. Despite the stagnation of profits in Spain, he sees that Iberdrola’s international expansion has reverted to profits and investments in Spain.
Twenty years ago, when Galán redirected the company towards renewables, its competitors made fun of how it would feed the generation if a day woke up without sun or wind. Today, The Basque company is the second electricity company in terms of stock market listing in the world, multiplying its size by seven in the last twenty years to 76,000 million euros. In addition, it has managed to increase its operating profit by almost six times and its assets by seven.
The Company has converted the North Sea and the main economies of Europe (Germany, the United Kingdom and France) as its large clients thanks to the ‘off shore’. on the horizon, the conquest of america immersed in a profound modernization of its infrastructures. In other words, it has become one of the most important markets in the world.
Despite the problems that the company has had in the purchase of PNM and the infrastructure that it was developing in Maine, matters seem to be on track. The acquisition of the US company now seems like a mere formality and the courts have just ruled in favor of Maine in a local dispute. so, yesThe future is cleared of clouds so that the subsidiary of Iberdrola, Avangrid, continue to develop in the US.
Today, the Iberdrola Group is a world reference in renewables at a time of clear commitment to the change in the energy paradigm forced by the climate emergency and the need for countries to be self-sufficient.
It is necessary to look back over 20 years to explain how Iberdrola is today the energy giant before us. In 2001, Ignacio Sánchez Galán landed in the company from Airtel, today Vodafone. It came at a difficult time because Endesa had unsuccessfully tried to keep the electricity company.
So, the company had almost all its business in Spain. Supported by his assets and a young team, he opted to invest in generation and networks at a time when Spain was experiencing strong growth and in which the sector was in deficit. His first strategic plan (2002-2006) projected doubling the size and results of the company. Inspired by the principles of the Kyoto climate summit (1988), in which the reduction of global C02 emissions was requested by 7%redirected the company towards that energy segment, especially towards wind power, in the face of current global opinion.
This change, together with the disinvestment in non-strategic activities and the channeling of business efforts towards generation, distribution and commercialization, made it fulfill its plan early. His second business step was aimed at consolidating his commitment to renewables and making the company grow internationally.
Between 2007 and 2008 it entered the United Kingdom and the USA, by acquiring part of the shareholding of ScottishPower and Energy East, respectively. At the same time, it developed its bases in Mexico and Brazil with renewables to later integrate the American UIL into Avangrid, while its expansion in Europe advanced.
Now, the strategic plan that has been set up to 2025 is on track and some objectives are already executed in this first quarter. Total, 47,000 million investment. Iberdrola has expanded its portfolio of large customers thanks to the guarantee of green electricity supply at competitive prices and closed in the long term. The world’s leading sovereign wealth funds, Singapore and Norway, share the company’s strategy. It is enough to take a look at the international agenda of its president, comparable to a foreign minister, to confirm the good progress of the entity. For example, he has recently met with the leaders of the US, Brazil or the United Kingdom.
Iberdrola today supplies energy to nearly 100 million people in dozens of countries and develops its renewable business, networks and sales in Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia, and maintains markets such as Japan, Taiwan, Ireland, Sweden and Europe as growth platforms. Poland, among others. Presence in around thirty countries, with more than 40,000 workers of 90 nationalities.
In addition, the company contributes to the development of the axis of the North of Spain (Galicia, Asturias and the Basque Country) being the main buyer of the works of wind energy companies. It is the world leader in renewable energy, reaching 40,000 renewable MW, by the end of 2022, and with a further 12,100 MW that will be operational in the next three years. It has 1.2 million kilometers of distribution and transmission, more than 450 substations and 1.6 million transformers.
Today Iberdrola pulls from the Spanish Stock Market and is one of the most solid stocks on the stock markets around the world. Its volume is such that it allows a contribution to GDP of more than 37,000 million euros per year and provides indirect employment to more than 400,000 people worldwide. Only last year it made purchases from suppliers that exceeded 17,800 million euros.
When talking about benefits, the company redirects the focus to its investment nature: Iberdrola represents 20 percent of the total of all IBEX investments.
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