ROCHESTER, N.Y., March 22, 2013 /PRNewswire/ -- Iberdrola
(IBDRY:US) chairman Ignacio Galan
told shareholders today that despite a difficult economic
environment, Iberdrola again generated solid results in 2012,
driven by 35% net earnings growth in its international operations.
The Company was one of the few European utilities to have
maintained profit and dividends to shareholders since the economic
crisis began in 2008.
Addressing the Annual General Meeting in Bilbao, Spain, Galan said strong fiscal
measures taken by the Spanish government in 2012 are beginning to
bear fruit: "The efforts of the Spanish government are being
recognized by the international community and financial markets,"
he said, adding that this year will be one of transition for the
Spanish economy, with positive growth rates in the fourth
quarter.
"The reforms carried out and others to be introduced in the near
future will boost sustainable growth in the long term and we expect
them to have a positive impact on jobs from the second half of 2014
and increasing in the following years," he said.
Galan stressed that Iberdrola has remained an engine of growth
in countries where it operates. In 2012, the group hired more than
2,000 employees and 800 interns/trainees, invested €3.26 billion
($4.18 billion USD) to upgrade
technology and infrastructure, purchased goods and services
totaling €5 billion ($6.4 billion
USD), and provided direct and indirect employment for
150,000 people around the world.
The Chairman also reiterated highlights from the Group's 2012
financial results which were released last month:
- Group revenues rose 8.1% to €34.2 billion ($43.95 billion USD), while gross margin increased
4.6% to €12.58 billion ($16.16 billion
USD), and operating cash flow rose 2.5% to €6.19 billion
($7.96 billion USD).
- EBITDA increased 1% to €7.73 billion ($9.93 billion USD).
- Net earnings rose 1.3% to €2.84 billion ($3.65 billion USD), driven by a 35% international
earnings growth
Galan also highlighted the importance of its geographically
diversified portfolio, citing that 70% of the Group's profit was
produced outside Spain. In 2012,
Iberdrola revenue makeup was: 30% Euro, 30% British Pound, 30% US
Dollar and 10% Brazilian Real. Company investments were also
diversified, with nearly half (48%) of Iberdrola's total investment
spent in the US and UK, mostly in the regulated and renewables
business units which offer stable and largely predictable
revenues.
Galan emphasized that Iberdrola's efforts to strengthen its
balance sheet are working well. In 2012, the Company:
- sold €850 million ($1.12 billion
USD) of the €2 billion ($2.6 billion
USD) planned of non-strategic assets,
- reduced its debt by nearly €1.38 billion ($1.82 billion USD) to €30.32 billion
($40.0 billion USD),
- increased operating cash flow 2.5%, and
- grew liquidity to more than €12 billion ($15.89 billion USD) – enough to meet its needs
for more than three years.
US Subsidiary Operations
Also addressing the AGM,
Iberdrola Chief Operating Officer José Luis
San Pedro commented on the US networks business operated by
Iberdrola USA. San Pedro paid
special attention to the new transmission system being built in
Maine by Central Maine Power
(CMP). He described the $1.4 billion
Maine Power Reliability Program as "an important contribution to
improving network reliability for customers." Construction on the
project, which now employs nearly 3,500 workers, has passed the
halfway point and continues on time and on budget. The five-year
program is the largest energy infrastructure project ever
undertaken in Maine. It includes
the construction of six new substations, upgrades to more than 40
existing substations, and the installation or rebuilding of nearly
440 miles of transmission line in 75 communities.
San Pedro also mentioned the successful completion of CMP's
advanced meter initiative (AMI) in Maine where the company installed 620,000
'smart' meters and the associated mesh network. CMP now gets 98% of
its monthly billing data electronically from smart meters, has
eliminated nearly 2 million meter-reading vehicle miles per year,
and provides customers with detailed online reports about their
energy use. This was the largest single smart-grid project ever
completed by Iberdrola, and the group intends to share the learning
from it throughout its worldwide network.
The three US subsidiaries – CMP in Maine and RG&E and NYSEG in New York, were also faced with unprecedented
recovery work in the wake of Superstorm Sandy, one of the largest
and most powerful to have hit the country in recent times. The
three companies deployed more than 6,000 people to manage a
cumulative total of nearly 500,000 electricity service
interruptions. Once their own customers had been restored, they
released nearly 1,800 line, bucket, pole-setting, digger, tree, gas
and supervisory employees and contract workers to assist other
utilities. For these efforts, each subsidiary won both the Edison
Electric Institute 2012 Emergency Recovery Award and the Emergency
Assistance Award.
Iberdrola USA Financial
Performance
Iberdrola USA
had its best collective performance since becoming part of the
Iberdrola Group. Galan noted that the positive US performance was
underpinned by GDP growth of 2.3% in 2012, which the IMF projects
will grow 3% in 2014. He said performance of Iberdrola's networks
businesses in New York and
Maine was supported by stable
regulatory frameworks in both areas. As reported, Iberdrola
USA 2012 gross margin was up 10%
to €1.42 billion ($1.83 billion USD),
driven by scheduled rate increases and a favorable currency
exchange rate. EBITDA increased more than 20% from 2011 to €660
million ($848 million USD).
As a result of continued strong financial performance, Standard
& Poor's upgraded Rochester Gas & Electric Corp's senior
unsecured credit rating from "BBB" to "BBB+" and Moody's upgraded
NYSEG senior unsecured credit rating from "Baa2" to "Baa1".
Investment in Technology and Infrastructure to
Continue
In 2012, Iberdrola USA invested nearly $1
billion in its electric and natural gas delivery systems in
Maine and New York. This included spending more than
$500 million in Maine to finish the AMI project and continuing
construction on the Maine Power Reliability Program. In New
York, NYSEG and RG&E combined to invest more than $440 million on improving, expanding and
automating its electric and natural gas systems.
Going forward, Iberdrola has set a priority on upgrading and
expanding networks, continuing renewable generation projects,
increasing the efficiency of its systems and providing better
reliability and other benefits to its customers. The Group plans to
concentrate the largest part of that spending in the US and UK in
the renewables and networks sectors.
Investing in our Communities
In addition to investing
in its infrastructure in 2012, Iberdrola USA also invested in the people and
communities where it operates. In New
York, the networks subsidiaries contributed more than
$23 million in economic development
funds to upstate businesses, including $7.4
million in emergency relief for commercial customers who had
suffered damages from hurricane Irene and tropical storm
Lee.
The Iberdrola USA Foundation,
in conjunction with the Iberdrola Fundacion in Spain, provided two post-grad and doctoral
scholarships for studies in renewable energy, environmental
protection, climate change and energy efficiency at the
Rochester Institute of Technology and
the University of Maine, plus
contributed $100,000 to Binghamton University to boost hands-on
educational opportunities for engineering students.
About Iberdrola USA:
Iberdrola USA, a subsidiary of
global energy leader Iberdrola, S.A., is an energy services and
delivery company serving about 2.7 million customers throughout
upstate New York and New England.
For more information about Iberdrola USA, visit www.iberdrolausa.com. For more
information about Iberdrola S.A., visit www.iberdrola.com.
SOURCE Iberdrola USA
