From PR newswire: Company beats guidance — board recommends 36¢ per share dividend.
- Revenue was down slightly from last year at $39.9 billion (€30.0 billion)
- Gross margin increased 3.4% to $16.2 billion (€12.2 billion)
- U.S. operations contributed $1.63 billion (€1.2 billion) in EBITDA, a 7.2% increase from last year
- Group EBITDA grows 3.1% to reach $9.3 billion (€7.0 billion)
- After recording non-recurring charges, net profit was $3.1 billion (€2.3 billion),
down 9.5% from 2013
- Worldwide capital investment totaled nearly $3.4 billion (€2.8 billion)
- The Company reduced its debt by $1.8 billion (€1.5 billion) to $30.9 billion (€25.3 billion)
- Directors will recommend minimum dividend of $0.36 (€0.27) per share
Iberdrola S.A. parent company to Iberdrola USA, reported its 2014 financial results in Madrid. Here are a few highlights from the announcement include:
2014 revenues were $39.9 billion (€30.0 billion), down 3.4% from last year. Although gross margin rose 3.4% to $16.2 billion (€12.2 billion), net operating expenses grew 4.8% to $4.4 billion (€3.6 billion) from 2013. Positive contributions from all countries outside of Spainpushed group EBITDA above guidance for the year to $9.3 billion (€7.0 billion), or 3.1% higher than the previous year. After recording a non-recurring provision of $170.2 million(€128.0 million) related to a new efficiency program implemented in Spain, net profit dropped to $3.1 billion (€2.3 billion), or 9.5% lower than last year.
“These results will allow us to keep our promise to our shareholders, and distribute a dividend of at least $0.36 (€0.27) per share,” said Ignacio Galán, chairman of Iberdrola S.A. “Once again, Iberdrola has demonstrated that its business model can produce attractive and sustainable returns for our shareholders.”
The Group invested a total of $3.4 billion (€2.8 billion) in 2014, of which 24% or $820 million(€672 million) was in the United States. Of total investments worldwide, 81% was in networks and renewables.
“Our U.S. businesses grew EBITDA by 7.2% over last year, which enabled us to contribute more than $1.6 billion (€1.2 billion) of EBITDA to the Group’s strong performance,” said Bob Kump, chief corporate officer of Iberdrola USA. “At the Corporate level, we successfully integrated our management services team, and now look forward to reaping the benefits of a more efficient structure.”
In Maine, the U.S. Networks group negotiated an improved rate structure, and is on schedule for the 2015 on time and on budget completion of the Maine Power Reliability Program (MPRP), a $1.4 billion reinforcement of the bulk power system that links Canada and the northeast U.S.
Renewables celebrated the start of field testing and certification of its new 202 MW Baffin Wind Power Project, part of the Penascal Wind Power Complex, located just south of Baffin Bay in Kenedy County, Texas. At 606 MW, the combined complex will become Iberdrola’s largest renewable energy facility in the world.
IBERDROLA made further progress in strengthening its balance sheet in 2014. By generating positive cash flows, divesting non-strategic assets, and controlling investment levels the company reduced debt by about $1.8 billion to $30.9 billion (€1.5 billion to €25.3 billion), adjusted for the cash dividend paid last December.
The Company also improved its financial ratios in 2014, including net debt to EBITDA, funds from operations (FFO) to net debt, retained cash flow (RCF) to net debt and debt-to-equity (gearing) ratio when compared to 2013. Total liquidity as of December 31, 2014 was $11.0 billion (€9.0 billion).
The Iberdrola board of directors approved:
- Holding the Annual General Meeting in Bilbao on Friday, March 27, 2015
- A proposal to reduce capital by up to 148,483,000 (2.324%) shares of treasury stock via a combination of amortization and a buy-back
- A proposal for a pre-tax dividend of approximately $0.36 (€0.27) per share.
- A proposal to pay shareholders an AGM attendance bonus of $6.10 (€5) per 1,000 shares
Projections for 2015 are in line with the 2014-2016 Outlook. With this business projection, the Company expects that both EBITDA and net profit for 2015 will exceed levels recorded in 2014, while both net debt and the ratio of net debt to EBITDA will decline over the year.
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