Iberdrola is presenting a strong outlook for 2021, characterizing the year as a peak that signals ongoing growth amid the energy crisis and a global pandemic. During the shareholders’ meeting in Bilbao this Friday, chairman Ignacio Sánchez Galán highlighted the group’s performance and warned that profitability should continue rising in the years ahead. The board plans to sustain dividend growth in parallel with earnings.
Even with uncertainties from the war in Ukraine and concerns about inflation and global growth, Iberdrola reaffirmed its target net profit for the year at between 4,000 and 4,200 million euros, a step up from last year’s record 3,885 million. The company also signaled a similar trajectory for dividends.
The positive trajectory is expected to persist in the coming years. Galán stated that the company will keep making significant investments that drive both earnings and shareholder rewards. He noted that Iberdrola has evolved into one of the two largest listed companies in Spain, the leading electricity company in Europe, and a significant player globally, delivering value to all stakeholders.
At the meeting, the board approved an extraordinary dividend distribution proposed by management to sustain performance. The plan calls for a payment of 0.44 euros per share, a 5% increase from the previous year and the highest level in the company’s history. An additional dividend of one euro for every 200 shares held (0.005 euros per share) was also approved, reflecting a high level of shareholder participation with more than 70% of votes cast in favor on this item. The group emphasized the strong backing from its owners after the 20 proposals on the agenda received an average of 98% approval.
Renewables and self-sufficiency
Galán emphasized the minimal impact of the Ukraine conflict on Iberdrola, noting that the company has no operations in Russia and does not source Russian gas. He underscored the importance of reducing dependence on external suppliers in Europe through accelerated investment in renewables, modern electricity grids, and storage solutions.
He called for greater self-sufficiency and explained that it will require expanded renewables capacity, smarter grids, and enhanced storage. Electrifying the economy and advancing decarbonization are central to achieving energy independence, with a clear opportunity to deploy more renewable energy and smarter infrastructure, including potential carriers like green hydrogen.
Against the backdrop of rising energy prices and regulatory shifts in Spain, Iberdrola Spain reported that the company will continue to sell a large share of its electricity production at fixed or lower-than-market prices in the coming years, providing some price stability for customers.
Expansion in the United States
Galán remains confident about revitalizing Iberdrola’s major overseas operation. After a challenge to a New Mexico regulator’s veto on the purchase of PNM, the company earned momentum through Avangrid, Iberdrola’s U.S. subsidiary, valued at about 7.0 billion euros.
He suggested that an appeal against the regulator’s decision could yield a positive outcome. The plan envisions completing the transaction in the near term, highlighting its potential benefits for both the shareholders and the broader community.
Overall, Iberdrola continues to frame its strategy around expanding renewable capacity, strengthening grids, and pursuing new storage technologies. The objective is to bolster energy security in Europe and North America while delivering sustainable value to investors, customers, and society at large. Acknowledgments from shareholders at this year’s meeting reflect broad support for the company’s direction and governance. This outlook aligns with a broader push toward electrification and decarbonization across industrial sectors.
Notes from the executive team indicate that the group will maintain a disciplined approach to investments, balancing growth with responsible financial management. The emphasis remains on long-term value creation, shareholder engagement, and a steady progression toward a low-emission energy system. .