“IBERDROLA RENOVABLES has reaffirmed its world wind leadership(*) in 2010, despite adverse conditions,” reflected in improved performance both operating and financial Chairman Ignacio Galán said during his address to the General Shareholders Meeting at the Palau de les Arts Reina Sofía in Valencia.
The AGM, with a record high quorum of 92.4%, approved the merger by absorption with IBERDROLA under the terms proposed on March 22, with a substantial majority of minority shareholders voting in favour, to whose vote IBERDROLA added its 80% shareholding. As a result of this vote, the distribution of an extraordinary dividend charged to reserves with a gross paid-in surplus of €1.2 per share was also approved.
IBERDROLA RENOVABLES shareholders, present or represented at the Valencia AGM and receiving an attendance bonus of a gross €0.0035 per share (€3.5 per 1,000 shares), approved an ordinary dividend of a gross €0.025 per share charged to 2010 results.
Galán reviewed operating and financial performance and said the strong results last year were due to the Company being present in the most attractive markets with the most visibility and more solid growth opportunities.” He also praised the “ability to execute of IBERDROLA RENOVABLES, the company that year after year adds more wind capacity in more markets”. He attributed the success to the highly capable and experienced teams that are fully committed to the project.
Valencia, centre of decision-making
Ignacio Galán gave assurances to shareholders that in this new phase, IBERDROLA RENOVABLES will maintain its commitment to the Valencia region, acting as an engine for growth and creating prosperity for Valencians.
CEO Xabier Viteri told shareholders that installed capacity rose 1,780 MW or 16.5% in 2010 to 12,500 MW with another 1,250 MW under construction and starting operations this year, “confirming our world leadership(*)”.
Production rose more than 18% to over 25,000 GWh, he said, with international activity accounting for 55% of the total. Output rose 32% in the United States and 22% in the Rest of the World division.
The CEO ascribed this operating performance to a “strong investments” by the Company during the year, with €3 billion assigned to ”expanding our capacity, especially in the U.S. which made up 53% of the total”. Viteri said that as a result the Company has obtained nearly $1 billion in grants for renewable energy in this country, all of which will be reinvested there to continue growth.
In 2010 alone, more than 1,000 MW began commercial operations in the United States, an increase of 30% over the previous year. In the United Kingdom, work began on expanding the Whitelee wind farm, the largest in Europe, to 600 MW.
Xabier Viteri highlighted the year’s solid financial results in a difficult environment. The Company recorded net earnings of €360 million in 2010 with gross operating profit from renewables of €1.45 billion, while assets came to €26 billion with a low gearing of just 28.4%.
The CEO referred to the importance of consolidating business on two fronts: efficiency in operations and careful project selection, with the goal of maximizing results. Along these lines, Viteri signalled the great advantage of IBERDROLA RENOVABLES of having a flexible project portfolio which allows it to focus growth on markets with greater visibility and attractiveness.
Among onshore wind activities, he mentioned the more than 250 MW assigned the Company in Brazil last year and projects in Mexico where it will double installed capacity by the end of 2011. Referring to offshore projects, he said the first phase engineering design has been initiated at the East Anglia Array and work is advanced at West of Duddon Sands which will be the first offshore wind farm to begin construction.
Commitment to sustainability
He also referred to IBERDROLA RENOVABLES’ commitment to R+D+i, in which it invested €20 billion in 2010 both in new technologies and also in improving operating efficiency and grid integration. These projects, “reflecting the Company’s continuing commitment to sustainability in all its actions, have been reflected in recognition it receiving the Queen’s Award 2011 for sustainability in the UK.
He reminded shareholders that last year the implementation of a new wind prediction system was standardised, improving the operational efficiency of the Company’s wind farms.
Xabier Viteri said “none of these achievements would have been possible without our teams, a group of magnificent professionals who provide vital support to management and represent the future of the Company.” IBERDROLA RENOVABLES has more than 2,000 employees around the world, of which 64% work outside Spain. In 2010, time dedicated to training rose 19% to 80,000 hours.
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