The income of Iberdrola, Endesa, Naturgy and Repsol totaled near 12,800 million euros in 2022 The majority of the sector classifies as “discriminatory and opposite to the legislation” the momentary tax of the Government for its supposed extraordinary income The shareholders of Endesa, Iberdrola and Repsol will see their remuneration improved by a mean of 10%
Unlike the financial institution presidents, who had been extra cautious concerning the extraordinary tax after they offered their outcomes, a lot of the high executives within the vitality sector have made their place clear: they’ll enchantment this tax to the courts. The vitality corporations have already paid 817 million euros to the Treasury, half of what would correspond to them this 12 months. The cost coincided with the publication of their accounts: the 4 essential corporations within the sector –Iberdrola, Repsol, Endesa and Naturgy– earned 12.8 billion euros in 2022, 41% extra.
While the executives described the tax as “discriminatory and opposite to the legislation”, the federal government insisted that in a context of “disproportionate improve” in electrical energy costs, it’s essential to undertake “balanced” responses. The forecast is to gather 1,500 million euros per 12 months from the vitality sector for 2 years.
Record costs for electrical energy had been set final 12 months. The common value per megawatt hour elevated by 50% within the wholesale market. Gasoline and diesel exceeded two euros per liter on the pumps. To attempt to comprise the impression of this escalation, the Government permitted tax reductions within the electrical energy invoice -which are nonetheless in force– and a bonus of 20 cents per liter of gasoline -and which now solely applies to skilled sectors- . The expense for the general public coffers of those two measures was round 8,500 million euros final 12 months.
Despite the rise in costs, the vitality sector maintains that there have been no ‘windfalls’. However, their accounts clearly level to an excellent train. Endesa and Repsol improved their outcomes by greater than 70%. Iberdrola and Naturgy had by no means earned as a lot cash as in 2022. The good progress of the enterprise will translate into an enchancment within the remuneration of its shareholders: a mean improve within the dividend of 10% has been proposed.
What story do the numbers you have got offered within the sector inform?
Endesa admits a part of extraordinary advantages for gasoline
It has been the one one to confess, partly, that it has earned extra from the rise within the value of gasoline. Specifically, 500 million euros of extraordinary revenue from the gross sales of this gasoline available on the market. She has additionally earned one other half a billion extra from elevated use of her mixed cycle vegetation to generate electrical energy.
José Bogas, CEO of Endesa, flatly denied advantages from heaven within the sale of electrical energy exactly “as a result of actions of the Government.” Performances he agreed to, he stated. He was referring to the mechanism of the Iberian exception, which in observe has meant lowering what electrical corporations cost for the kilowatts they produce with out utilizing gasoline as gasoline. Without this limitation, Endesa’s revenue would have been 6,000 million euros greater, one thing “completely illogical”, admitted Bogas.
Like the remainder, the corporate has taken benefit of the presentation of its accounts, 2,541 million income, 77% extra, to announce that it had filed an enchantment towards the Government tax. “It’s discriminatory and unjustified.” Endesa will obtain 200 million this 12 months.
The electrical firm managed so as to add 900,000 clients to the free market with its provides. The accounts say that the margin on that sale of kilowatts improved by 31%. “Part of this improve is as a result of restoration of earlier conditions that maybe weren’t so snug,” they defined. Endesa has proposed a ten% improve within the dividend, above the preliminary forecast.
Iberdrola, file revenue with fall in Spain
He had by no means earned as a lot cash as in 2022, 4,339 million euros. Iberdrola achieved this end result due to the expansion in different markets that offset “the 19% drop in revenue in Spain”. It is the one one which has highlighted this poor efficiency of its end in our nation. What occurred? The president of a financial institution stated that “accounting was like chewing gum.” This is among the explanation why the Executive designed the extraordinary tax on revenue and never on income –with extra room to train that accounting flexibility–. In the case of Iberdrola, the extraordinary impact of some judicial rulings may clarify this recorded drop in revenue in Spain.
The president, Ignacio Sánchez Galán, gave his personal rationalization: “the excessive prices of the gasoline disaster, whose costs now we have not transferred to clients, in addition to the low water sources and regulatory interventions” clarify the decrease end in our nation.
However, the margin of the enterprise skyrocketed. The sale of electrical energy to its nationwide clients, 87% of which is within the free market – and subsequently with costs set by the corporate itself–, left a rise within the margin of 20%. That is, the distinction between the vitality offered and what it has value to supply/buy it, improved by 900 million euros in comparison with 2021.
Despite these decrease declared income in its essential market – Spain generates near 60% of electrical energy gross sales – Iberdrola has proposed elevating the shareholder dividend by 6%.
Naturgy, file income within the 12 months of gasoline
The 12 months by which we paid probably the most for gasoline was the 12 months by which this gasoline turned the primary supply of vitality within the Spanish electrical energy market (one thing that had not occurred in 13 years). The conflict shot up its value and the drought, the warmth wave and the Iberian mechanism led to a larger use of gasoline to generate kilowatts. Naturgy is the one with probably the most mixed cycle vegetation and these labored many extra hours in 2022. The firm’s gross sales –gas and electricity– elevated by greater than 50% as a result of excessive costs.
Francisco Reynés, president of Naturgy, was the one one who didn’t make clear what place the corporate would undertake concerning the tax. “The determination to enchantment or not is one thing that the Board of Directors reserves.” The whole dividend obtained by shareholders will probably be 1.2 euros per share, the identical quantity as in 2021.
Repsol: 70% extra income
It wasn’t a file, but it surely’s shut. Repsol earned 4,251 million euros in 2022, 70% extra. The rise within the value of crude oil and fuels boosted their income. The profit isn’t detailed by nation, however by exercise. And by far, the one which rose probably the most was refining: it went from a results of 606 million to three,150 million euros, 5 instances extra. It even surpassed the outcomes of crude oil exploration and manufacturing. The good figures permit the corporate to suggest an enchancment of 11% of the dividend to its shareholders.
The oil firm assures that it has allotted 500 million euros to reductions utilized to fuels and introduced that it’s going to enchantment the extraordinary tax as a result of it considers that it’s not suitable with the Constitution or with European laws. Repsol is entitled to 450 million.
“We are delighted to contribute to society by means of the taxes we pay, however this fee is discriminatory and can discourage enterprise,” President Josu Jon Imaz declared on February 17. That identical day the National Court dismissed the requested precautionary measures by the oil firm to paralyze the cost of half of the tax equivalent to this 12 months.