IBDSF - Earnings call transcript Q2 2022

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Ignacio Cuenca Arambarri

[Foreign language] Good morning, ladies and gentlemen.

First of all, we would like to offer a warm welcome to all of you who have joined us today for our 2022 First Half Results Presentation.

As usual, we will follow the normal format given in our presentations.

We will begin with an overview of the results and the main developments during the period given by the senior executive team that usually is with us: our Chairman and CEO, Mr. Ignacio Galan; Mr. and CEO; Business Martinez, finally, Mr. Armando CFO. Sainz, Pepe

Q&A Following also would going take the the we this, move on to web. via submitted we'll session. questions like only I are to to that highlight

only question your ask please through web page, our www.iberdrola.com. So

will you. today's minutes. this be Finally, will more informative and that last event expect than not we for presentation useful that XX Hoping all of

again. Chairman Thank would further to give much our ado, you to Galan. Ignacio I like Mr. and without Mr. Now floor CEO, Galan. Please, very the

Ignacio Galan

billion first Good and the you XXXX, EBITDA million, and profit. United much result in the million, driven very presentation. reach to all XX% driven Gross with which of mainly grew including is by XXX our in XXXX, installed up next the geographies, profit decrease our compatible €X,XXX megawatts morning, Networks PV the EDX, U.K. XX,XXX capacity with the operating half having -- flow last more ScottishPower X,XXX kilometers megawatts by the balanced are offset X,XXX X was In under prospect thank to draft published Spanish by everyone, than the determination And in of reach profile years, awarded solar been which €X,XXX already of million, in offshore have last is billion in wind the wind, an a result these X% XX% Brazil. XX reaching States renewable capacity £X.X €X,XXX transmission for transmission of fully the of awarded Neoenergia close position for capacity allowance XX% Ofgem as €XX with to from new for our With secured net and that strong years. of expansion in the more U.K. allocation in In joining transmission megawatts well reinforcing the net of coming all megawatts recent increased more new XX% XXX in construction by billion. the TOTEX even for months, XXXX. €X,XXX liquidity organized also, we round. first growth the the PPAs which financial half the auction CfD high million RIIO or of €XX.X the increased we project, regulator. And X,XXX in with after additional business of total for with voltage cash onshore investment

quorum XX%. annual share, an per Finally, vote than that of in celebrated year remuneration shareholder included meeting the previous the higher were X.X% proposal All including month, approve the shareholders of €X.XXX a registered with of we last favorable annual XX%, year. average

certain up countries Spain. was positive EBITDA contributing higher to to by in asset the base regulatory in XX% the to order XX%, XX% increases already with positive us regulator, to the New EBITDA asset. increased mentioned, in except more all €X.X the U.S. And As billion a all the group geographies, evolution York than this the of Networks register additional due of -- thanks EBITDA, and Brazil. on issued tariff in impact allow by revenue

capacity which and partially forward, retail, was Energy the offset Spain results. EBITDA to both wind best and court rulings. lower This driven compensated evolution group customer impact output in U.K. in mainly stability increased and Going provide will relating by positive which a and X,XXX by the offset hydro year-on-year -- Spain, by in to also -- this production more new X%, last the installed year,

Brazil. negative and decreased by additionally increase purchase increasing X% by with Renewables renewables complex by X slightly, in of mainly offset well also by Spain, and with largest and we regulatory year-on-year, and than to €X.X same in Networks, Spain. forcing the the our outage, context. As to with amortization, by wholesale first investment partially impacted Result gross continue of expensive customers. ruling net lower profit maintain wind of Production energy XX% previously and Iberdrola due to by coming mentioned, the the as the mainly and driven the Spain Brazil, onshore prices increase investment U.S., output consolidated Overall, exception in charges. of of the lower destination gas half our thanks were evolution the mostly period was us In we XX% reaching positive from X%, to year, with more increased last growth to These representing hydro agreed of increase affect nuclear results, of was the margin effect X% general the production half allocated and and our project, total, the to market. impact decreased Networks Networks. the fixed as orders first XX%. XXXX, to U.K. the court billion, acceleration investment against offshore with U.K. the

be that We last usual accelerate administrative the in process to trend as expect speed if and of could up. faster year the permitting investment month continue to

[X,XXX] we last megawatts in well megawatts service of X,XXX months, the as wind have of hydro battery as in onshore and put storage renewable Over solar XX PV reaching capacity.

more growth U.S., in Brazil, rest clean support than energy of significant the wind U.S., in to megawatts governments. and pipeline of and have world, Spain, the and where megawatts the Australia, expectations, increased provided in Australia solar X,XXX thanks and Spain federal of of our we onshore X,XXX include the Portugal, the Additionally by Brazil PV especially regional

this Portugal in history, hydro X -- the hydro of in the giga battery, complex, Alto Costa pan week, dams, Tâmega close project the in installed pan X,XXX Antonio inaugurated years. X of Gouvães Last the clean after Daivões. the the energy fact Minister, last and Prime completing We of construction have Portugal built one XX Europe of largest the most relevant project in and storage also megawatts

corresponding from XX,XXX in this to to from this solar total XXX significant megawatts. the that in our All XXth. the construction geographies. from Spain already solar. U.K., under recently the of [indiscernible] with Australia for range A worthy Almost in we X/X And with growth has of to to locations years. basis offshore, remaining investment correspond XXX and ahead, megawatts make on is to storage coming from The return of to X,XXX U.K., capacity WACC. capacity wind, points more East between a correspond have secured related that, total to contract battery States, and of in of to megawatts of Brazil Spain. and wind difference, with the more and auctions be XX% expect XXX for already X additional mainly contracts of France of and the the mostly our including megawatts wind PV project, secured project of the billion, top XX% XXX of located which to provide won comes will at In U.K., and project close PPAs offshore a in offshore be construction this commissioned by mainly XX% were the in over onshore Portugal, we wind different very X,XXX in XXX Anglia of wind, solar X,XXX will than part the detail megawatts On capacity auction Finally, and operation procurement world, onshore PV, than will XXth and X Germany. including United offshore wind recent globally, rest we offshore in £X.X

know, Ofgem additional Total U.K., in post with equity inflation published its taxes -- low secured for expenditure in plus also Networks. the In cover that XXXX. of X.XX% and low ScottishPower determination of April over reach the -- the as £X.X EDX between billion significant XX%. the you March we've adjusted £X.X nominal On XXXX investment for last incentives, remuneration a the the period terms leverage RIIO an quarter, which, million we draft and framework, with

We XXXX. we expect of investment, transmission Altogether, taken €X TX. the add in approved investment network the this up in close on December. to already U.K. will billion and We RIIO the to by in improving up remaining EDX decision RIIO to reach this final investment be for continue that £X.X billion framework

kilometers XXXX investment average points in held XXX June, transmission of line lines country auction total to since in high held which almost as in up built was project, the basis in Finally, XXXX, of with of BRL in sorry. represent XX of -- substation high-voltage, kilometers with which well be Neoenergia well X,XXX XXX total X,XXX Brazil, this the auction awarded transmission billion, an will an spread XXXX, a the WACC. over reaching in would as of This obtained -- XX to

prices. energy reinforce the gas winter. to common Moving The in well just energy will to to has protect and We Union in that geographies on XX% for to reduction see reach consumer coming increasing the effort policy self-sufficiency as up European of consumption agreed regulation. all

energy starting. electricity of U.K., was taxonomy price the for target on and contribute on future green a methodology In the more energy recovery following solve latest and including Ofgem heat the hydrogen adopted Parliament addition, gas. the green reform finally other market introduced, carbon nuclear The In also including design basis, which will cost European is of the bill efficiency the is restricted energy. from and include electricity the the inefficiencies. for debate consulting ambitious new to incentive cap on gas, -- In and conditions. market taxonomy renewable pumps, case mechanism, and And hopefully communication was a commission, approve, European transitory the

liberalized that excess increase has market of regulated electricity customers used gas companies consumers exploration on Additionally, introduced, gas. the oil government and electricity potential an has as there is introduced gas announcement subsidy been a and and local also in of by the the oil market taxes renew and gas, tariff, creating a a in wholesale with they production by a in in In and Spain, cap financed to prices as electricity tax production for their contracts, on was profit. the temporary

As not in far electric utilities. oil as I companies, energy know, companies, are are gas which their result increasing and Europe, the

reform is Spanish of the to design in unique other price hand, Europe award tariff, the Commission, government the European in volatility. the regulated On the which following mandate order of the will

new the to accounts. a New accrue certain the filed to a regulatory rate -- On regulatory to commission. revenues. the order allow notice published York Also, sent Maine in stability regulator case more in States, in also in New us and United to for was provide Maine, in has York This will asset the intent CMP, consolidated

in the Massachusetts new shortly of XXXX. expect is forward appointment the Commission starting January these move In with cases by New Mexico, new We members and rate Connecticut. Regulatory to Public

Brazil, of reducing in government taxation the electricity. Finally, is

first cases. and performance strong a have subsidiaries, showing results both AVANGRID Our X listed in Neoenergia, half presented already their

first cases, rate located Our in mainly thanks the increase new construction. to the XX% this gain million, rest megawatts megawatts the of banking next net Gross in wind company CMP. $XXX and AVANGRID restructuring and to will reached renewables. solar $XXX of and impact profit In increased and with and onshore under positive to XXXX. the half, to million with billion. of reached by agreement X Adjusted XX% investment our has wind production the installed onshore Networks close XXX operation month, million the EBITDA rest to the to $X.X of capacity of $X,XXX the XXX

million. increased Brasilia. X,XXX by XX% target X,XXX net impact to is than networks, driven the reach asset megawatts million, X,XXX Brazil, investment consolidation last in XX% XX% reached Gross higher and to the allocated BRL by wind Neoenergia almost reviews, BRL and to mainly construction company EBITDA of grew progressing year, of XX% profit to projects. BRL the and of in Additionally, Networks more the base renewables. X,XXX In Neoenergia offshore million, XX% of

resiliency all Europe, from on gas of following at we oil and for in Iberdrola only we macro XXXX hedge. Our with operational XXXX emission our Russia. the business to Also, policy, European EBITDA do from of production current of XX% our with of and sources, not secured X% in procurement supplies gas have performance scenario. comes demonstrate already the depend our X model contributing close prices

In terms XX% debt rates. around our of of has financial structure, fixed

years. X is maturity debt average Our

basis due position million the €X,XXX XX.X%. to up liquidity points to generation to net to XX% billion. strong ratio has our to €XX reached debt adjusted has half, our cash Our XXX And flow improved FFO first in

dividend paid result remuneration. who engagement paid Finally, Shareholders' paid with increase for and the group of -- held €X.XXX week. next meeting, dividend share will together dividend over annual general €X.XXX last per after of shareholder the Pepe? February financial approved I X.X% present total will We, be the detail. already CFO, €X.XXX to of a this month the leads annual to Meeting share per our per supplementary remuneration in now €X.XXX share hand a share. a the of per interim will in Accordingly, General in

Pepe Sainz

morning to much, Thank you Chairman. very Good everybody.

profit Chairman €X.X to €X.X As XX.X% explained, has EBITDA and XX.X%, to up net the billion, grew the was billion.

average has Our level a -- almost by X.X% the year. XX%. profit XX% In at as near level on rose and by and dollar against we €XX.X results of had at increased have million XX%, FX €XXX term, an €X pound already the real effect of procurements we million grew the are the evolution hedged and reaching net the billion the Revenues for €XX.X to euro X.X%, hedged already by positive the EBITDA billion.

appreciation. consequence the FX operating billion excluding expenses gross XX% by to As and €X.X impact. as of Net to a margin rose rose by million growth €X.X group's FX consequence, a and €XXX X% the billion

-- grew at positive other QX operating €XX from the affected the of impact FX, net expenses 'XX operating was This quarter this rotation asset evolution in income by Excluding also negatively XX%. million level. the

€X.X X,XXX consequence to impacts increased adjustments, million, positive as was our tariff positive of for by in New certain from recognition USD and to quarter. a said, has assets In the the up in earnings EBITDA Nevertheless, million for accounted case first a settlements are in assets In after revenues. linked impact XX% the Networks, million good in EBITDA explain starting future base, evolution that stability in million, there impacts the U.S., been nonrecurring mentioned a partially efficiency by to to positive has linked to determined inflation quarter, to asset negative the a €XXX X grew included billion. this accounted XX% a to efficiency. X,XXX in accounted on due compensated Spain. this its €XX the factors one-off XX% allows positive $XXX as Chairman positive our and Although to that the business. was order mainly BRL legal a already was There EBITDA quarter and in in QX, in by Analyzing more one-off grew €XX base, regulatory and also results negative impact recurring IFRS the a the the by business pensions. Spain, of In driving, Brazil, of negative XX.X% operating 'XX. decreased recognized York in million operating asset group driven million into EBITDA the distribution EBITDA €XXX increasing million accrue recognition U.S.,

In the recurring XX% derived addition, which there is the impact, the of not is and only higher evolution for to above-mentioned EBITDA million, GAAP positive to U.S. a investments asset business the from IFRS. rate cases in increased $XXX base. linked accounting higher

snap the the results first the due and energy of X% last impact. base. £XXX flat tariff, €XXX asset in in accounted £XXX U.K., expected prices. Finally, billion and that to quarter, better by in In $XXX €X,XXX by In the higher to higher due was Chairman of improving increased the to Texas the U.S., business X.X% thanks to versus U.K., than SVT partially despite €X.X sales, results sales and as and due contribution fixed in million, to decreased very quarter Energy higher EBITDA new to group's up -- X.X% million, higher and policy procurements year, production Spain, first cold positive the compensated X.X% explained the million of output our EBITDA prices million, higher EBITDA grew the has to to the wind EBITDA XX% the the of wind a FX higher environment, of X%, compensated customers EBITDA context the million output installed price a excluding consequence In the better capacity the price was 'XX. high as of previously.

addition, SVT be October. the will In in raising again

partially This results the Mexico, In $XX was that cold affected XX.X% expect thermal $XXX Texas by to has we continue to 'XX. snap. million. EBITDA the been improve. lower production So million in will by negatively compensated grew

million grew CCGT. XXX Termopernambuco XX%, at is driven BRL Brazil, there In million €XX the one-off. XX% a to addition, positive increase EBITDA by In improving March

grew up affected of grew €X.X offshore mainly impact. excluding rest XX% different due €X.X X.X%, plus D&A billion. XX.X% D&A the the and of both the world, impact. revenues €XX to €XXX million, Net Provisions geographies. inflation. with across business the one-offs growth FX that some Debt-related negative by cost and billion from the to FX, the around €XXX higher grew XX%. to costs in Provisions base to for were to growth €XXX Brazil The onshore was EBITDA than more higher contribution million, higher up Finally, EBITDA the renewable XX% activity, €XXX to indexed XX% the debt compensated and level and asset FX nevertheless is EBIT million at network expenses financial grew million million. explained due was to €XXX million. in and by

has Brazil, 'XX, basis to accounted million. in in prudent positioned one-offs FX debt balance. funding. another debt is net €XXX have as linked debt balance improved by positive the of due Non-debt-related the well Excluding average increase Half points approach explained, for Iberdrola's net a Chairman the for costs rise X.XX%, impact higher and sheet million cost results €XX QX to inflation, our the this X had of explained of half to is as in in the we hedges. the increased

of exclude is you debt including forward €X swaps. Our start if billion now, XX% fixed,

EBITDA to been linked. see much another higher maintain Around we As structure months all our an liquidity slide, anticipating in indirectly you of very over Iberdrola very and our is structure. XX% €X different €XX up XX ample a to and needs in XX% close in has revenue to with up can present, is conditions, competitive half linked billion, stress our billion inflation date At our XX totaling -- second the than months markets fixed financing. a coverage fixed in of debt to able transactions directly financial scenario.

sources to sources. this financing another and commercial be program and kind share. giving finance of continue market XX% that represents XX% to diversified. first us is XX%, have lenders in our addition, months, of if increase these highly Bank our In have increased of the bond Currently, required, supranational opportunity funding

Our X is years. debt average life

company under flow allowing can up you the slide, in strong the and on maintain with to the debt As XX% FFO investments the cash our our period, compensates see gross generation control. dividend,

As a active working had continue has commodities management us capital possible in impacts Also, to of working of consequence, our neutralize that -- credit allowed debt. adjusted improving. have a we metrics to capital negative our impacts

adjusted net Our debt EBITDA to to X.Xx. improved

Our FFO XX.X%. to adjusted net debt rose

XX.X%, second the by Equity Our quarter, retained Wind adjusted €XXX to of CIP method strengthened In of million. flow up quarter. was of impact million the as result is restructuring €XX nonrecurring accounted adjusted agreement profit in our ratio impairment a partially leverage this to Vineyard in was XX.X%. million the with XX% Net engineering positive U.S. cash €X,XXX and net reached that debt first compensated a our grew to profit. includes

negative 'XX, the Spain. in U.K. favorably our of affects net positive recorded evolution the all taxes one-off in evolution to except addition, In related with countries profit

the Chairman the conclude presentation. will Now, you. Thank

Ignacio Galan

despite in normalization we of The addition energy to full capacity megawatt of you, progress an will demonstrate of production, result sector billion plans, reach to and second year half hydro the the have and Networks expect make by expected the X,XXX wind and Thank macro renewable year. of trend investment this increase €X.X driven in continue we year, and the the of along ahead our Pepe. continued to the scenario, current that

operating our thanks investment to expect have our and net rates all, United XXXX, billion. the reflect profit and debt €X.X And half, in that exchange in come, ensure structure, the additional will in of for reaffirm our impact XXXX Brazil don't higher we of opportunities our the have seen first we mainly linked advantage the we footprint expect to range as evolution years environment taking the increasing the costs. in over result X interest to our continued challenging first the months of in billion to to €X target -- rate exceeded positive All financial our outlook energy decarbonization also We States. of our growth To in conclude, we global and expanding self-sufficiency. diversification on of

place more the We Capital Market November. will information in will and about in coming for London next Day plans projections the years our provide in that take

all Our team now you We will details few the to send questions. in Investor your Relations than will answer happy next weeks. be the more

Ignacio Cuenca Arambarri

Okay.

given of and Before starting brief a is -- will be this on we duration sorry, results, day to the event. the try that of Q&A session, today full

Canada; the will Alberto I The have professional the asked top Goldman next the in Stanley; putting for Alonso, So, following question Jorge Morgan be minutes. Fernando Bank from Sachs; summarizing. few I'm Garcia, to BNP; from capital finally, Pulleyn Generale; reason, JB Jefferies Gandolfi and Ahmed the Suarez, Robert that management Manuel Javier Guimaraes, Jorge Exane Farman, markets. Palomo, Societe Mediobanca; of Royal

capacity, The in question part new first Same EBITDA year guidance. is profit, the EBITDA the What can we related of is net €X.X renewables to HX second the cetera? for and terms as billion? recurring, expect considering et the of

Ignacio Galan

think I So, main is, level of one from production. side, factor the

in in We year. We better second the the normalize a will was negatively output already. need Cofrentes drop that, reduce a we markets, nuclear year. that now affecting second is we of expect in hydro which to recover and now end plant that This terrific wholesale but the energy of in We hope the think half producing -- I Spain, think Recovering are expect that we put to some time. ourselves. will quarter, in of the know I in purchase

contribution have well additional as certain investment. of will We

months. we and will these in mentioned, we be investment X continue I have €X.X during Networks, going the in around I that X,XXX think our -- up of megawatt to the is to making will installed renewable year, we billion

States. already as €X guidance And why the think billion. operating impact of We think billion in been It are to of and United mentioned, certain €X.X well FX we has I maintaining will that's generate returns. results, I especially our positive Brazil in

environment very would word you aware have this we use I to like very And we would or be, let's to say, be environment. volatile this volatile to about conservative. think prudent, like think I the

Ignacio Cuenca Arambarri

your Second next in best of evolve year XXXX? could what by cost of the year-end? question is And debt the in guess the how is, net debt

Ignacio Galan

Pepe?

Pepe Sainz

FX, to we we net end -- it Well, the depends debt Yes. to with are little €XX end but year €XX the a to are expecting debt. a expecting on of bit million billion around net

terms fixed, obviously, of Markets of the cost 'XX, In information and that give of most cutting Capital are In But bit it in of the evolution will little is on more a will the Brazilian bit. the Day. we our a little the the debt debt, of you except depend Brazilian on start expecting real Bank we Brazil -- with real. -- rates Central will

we see what So debt. Day. But Capital we'll evolution give as a sense, in you perhaps will on -- I Markets would that we information was telling, see on positive the more the

Ignacio Cuenca Arambarri

evolution the Next update bad debt and markets on exposed to an different the possible? total percentage in you question. it if possible get be of to, amount, Would are

Ignacio Galan

Pepe?

Pepe Sainz

Well, the higher. quite bad terms percentage they -- we we stable. obviously, have the on increased amounts a debt because, of are little are But bit in maintaining over those the sales, are provisions

is good that So news.

a last bad line of sales debts in year. maintaining We over percentage are with

Ignacio Cuenca Arambarri

and debt Brazil, What question. in cost impacting financial higher FX can U.S. of Next debt? for we considering expect results

Ignacio Galan

Pepe?

Pepe Sainz

second one-offs this in will expecting we first happen some we in growth, have the negative to growth, that percentage reduction the terms not in half. taking impacts see of of account that Well, accounted are in into of

expenses So XX% say year down I which is the around a for the our like level something we XX%, would will that of have, the from be coming financial growth. current that, whole growth that

Ignacio Cuenca Arambarri

and the us you regulatory orders is, rulings? impact to quantify help Next negative can of court

Ignacio Galan

Pepe?

Pepe Sainz

order? impact of negative regulatory The

Ignacio Cuenca Arambarri

column Between regulatory impact rulings. negative -- of and court good impacted orders

Ignacio Galan

we these Quantify one, much our provisions. accounts into how this have introduced fully of

Pepe Sainz

give me rolling Spain? In court -- Spain, you you in mean? Let

Ignacio Cuenca Arambarri

wording appear related doesn't the but it's that, yes. to The of Yes. question this,

Pepe Sainz

Okay.

comes divergence certain in from valuation the have a So that assets. on we basically, this

passed as appealing we but some was as given has on given that to correct an the saying, government the that. assets. by there finally regarding be expect this. And our think order government, are that to decided has I provision given by the won of assets So and the been And the Spanish court to distribution it this in has the in courts, by policy the been we and we And order do, valuation conservative have accepted valuation our we business. to we are these of

Ignacio Cuenca Arambarri

question impact could of results an expectations? Spain year the of energy could applied be XXXX be Next type is, and companies? XXXX and Italian among based other tax what it in utilities in split How

Ignacio Galan

more Well, we'll provide one, information. -- this probably

well to think XX% energy electricity. about the -- I than XX% XX% energy. gas -- And from as like and that in I and of And fuels. would remember even total they of generated -- only fossil of are consumed energy talking energy more oil half this electricity

over in we have case with think that I the and as not results have the the and to our information not you extra as just shown And is results, oil the profit, presented I already So you. all world. gas companies, seen public in

Ignacio Cuenca Arambarri

regulation Spain related let related the includes is, Next the results accounting of question change about in if in Spain? the new renewables yes, impact could year in know to HX? And how in the results? is much what full again is you us you Spain, If expect

Pepe Sainz

not it's my impact, not in that in on is my depending knowledge, opinion, results. think I So, and does --

in I any think later to we on. [indiscernible] be case, have advancing just cash in to return that,

an not the flow So impact time only of It's cash the impact result. in in think the is that being. company for I our accounting an

Ignacio Cuenca Arambarri

to Next and opinion the in market the taxes U.K., is for expectations? reform, proportion fuel] U.K., related [green with the pool green

Pepe Sainz

it's U.K. think has week. I process already last the government So this launched

analyze to in need we time think more I this detail reform.

-- we this have -- As as give we able we But already this I soon launched will I that's already I think to know, you already as think some already as answer. and much analyze. will process be the analyzed,

Ignacio Cuenca Arambarri

question. you in extent us your the customer to please able countries? electricity tell Could different what Next been to current pass about prices final already to have you

Ignacio Galan

Armando?

Armando Martínez

XXXX. and for than of XX% sold customers to of We than our own final XXXX already own more have already in been XXXX, in final generation has to And generation XXXX, customer. sale XXX% -- XX% XX% the already more our -- sold sold the of our

Ignacio Cuenca Arambarri

would capacity the delays degree expectations? expect how of you Should environmental in is, question Next versus and Spain installation XXXX qualify XXXX? your permits approval of of we in requesting

Ignacio Galan

of know, measures well. prominent for that in case of for in I've minimize is of re I the already we me they the already one of of timing authorities too regulation told I've think, the the United saying as bureaucratic. these Many as that had the already a Tâmega giga called far kind already well. not had It's in panels. yet, to started process of He are to But of of the published very these not Portugal permit directive, Commission so been been delays. more things make first some -- well, Same or authorities, as short-term to he's one -- points as for the mentioned, that because I diminishing our week more that are the slow. announcing solar and case, supply Prime Spain years question too bureaucracy of not little plan already I special European think The been the -- quarter, in fact permitting. the already that, where with to detailed. already Minister. fact They avoid already It's to country, opening countries, The already permit. facilities have in present was several Britain. last these But the is as that their a the already as So I law I already preparing Mr. we our battery in European how publish implementing seen has in general. where mainly fact new by have that, we bottlenecks. some claiming one small impact But of a have I one, -- publishing, for the very in X is the the case quired now, European far States, how thing know, in I've inauguration

panels solar few the removed, has state of months. the expect supplier the we this in next and impact in been Now don't

will X the of -- solar that one panel. already affected this not it's So this which for tariff years already already, because we imports

resolve. the trying and Still about do to countries always it's So happen for all which measures, is already their we all have they not best solve, countries but to future. it implementing knows -- problem something to are the next in going

one. it's solve think that in in only I I of one had the already we is countries all way real fossil renewable. construction reducing our a try for the of renewables, the fuels I for But to In the drive construction think continuing to think countries sure to already I'm debottleneck, ourselves projects third short this accelerate of in is other have dependency companies in term.

Ignacio Cuenca Arambarri

Next inflation you of impact question is commented previous Iberdrola please the related for to an the cost to -- renewables. on update up Could calls, provide now?

Ignacio Galan

thanks countries. and Networks, in inflation has persist businesses. different to So, increased convinced mentioned in our operating renewables, CFO, result, the most I by in which think inflation In certain most to we are have in as CapEx. since for we course, if In renewables, of are the the framework with our linked of protecting are Also inflation. inflation regulatory CfDs revenues the PPAs been of

that increases, any final in of with And transfer have in prices suppliers will -- consequence As -- close advance. our but already for the hedge to we one the in almost XXXX, consumers. to case, prices of secured in we our

supply XXXX, And our already chains. past. fixed equipment fitting You'll already still we in think we prices remember large very the we partners the from for in XXXX are -- protecting I in of make already not

think the inflation of another increases interest rates. the So of consequence -- is in I

inflation area that debt only natural-hedged Brazil, at revenue, in in is XX% we have one one. also the I which are fixed is Pepe rates. in our where the that not mentioned, which And already of is we country so think As in [indiscernible]

-- So affecting we much for inflation the are this moment not already itself.

Ignacio Cuenca Arambarri

of acquisition the to deal. provide time expected proposed and an the question Next related is you update PNM the the status please is, frame? And on could

Ignacio Galan

-- mentioned we our Well, in as I conference optimistic. think remain I call,

with and we agreement PNM then. already are that -- transaction we have confident until fund We sure execute can an by mid-XXXX, that the

the which nominating decision appointment mentioned to Mexico regulator. committee by Mexico in the Public going renew already is New in the Mexico Commission have started, place of New with has regulatory January the New to the Also, the filed in against nominate second be of process appeal speech, commission, an Regulatory the court I which new my already We to XXXX.

So for us, I important for Mexico think investors. New for think this citizens things, sense it's commission already that regulatory most makes those is the all the months, X and remain job. I in in transaction And

the fact, commission presented I agreed parts already think the the to XX regulatory New -- Mexico it. in with the in of XX

in the transaction. general has attorney the Mexico New even publicly So supported

not were already So those the the think facts. the The reason, that already actual was XX And I goes parts transaction. regulatory commission for XX supporting the -- following. already whatever are of just

I to the hope also, into which going in think the manner. Supreme in the to are number January different appointed analyze the will will Mexico a this regulatory New already by already take which process this Court we support is And already in the commission, be people transaction. year, consideration thing new present of

that's remain already I why So optimistic.

Ignacio Cuenca Arambarri

is, that when upside broadly might to believe investment question any? to do you lead the you in Can Europe? plan quantify, EU repower further Next your if

Ignacio Galan

at to call for time, you or pretends think same XX, this self-sufficiency, X positive target. becoming net the become I a precisely a Europe to decarbonization of Fit for already opportunity regulation I that It's is self-sufficient. same the heard the me the we At for Fit emission. to already diminish REPower the reached self-sufficiency. very So, time reach will our because Europe used

As plan. a we you have clear already very know,

helping things Day will market more sense of about But -- helping decarbonization, sense. no the these months, continue we Many then happen of is country things. in November, will Capital is in all our the since in in lead -- so detail Market in us meet in strategy to the going to I all Europe next become few investing self-sufficient. in change think Our to

already Europe energy in of ministers -- seeing week ministers is that almost are we meeting So every for different reasons.

Europe build or aware already present, have So with about becoming for one the is the for only already is renewables. wake remain -- countries, I one -- sources self-sufficient to the and the nuclear I we becoming very that self-sufficient. in make think And need Europe existing we think would one. up about those to And the is like Europe are of fact only

Ignacio Cuenca Arambarri

the last the question is following. And

Given the fund rising to focus markets on Europe and Europe U.S., U.S? are disposal or emerging in investment you contemplating any debasement in

Ignacio Galan

very So, in I are I new we a terms think know think investment, you clear. of

with we PNM. process think continue I our of

investment of in countries. is focus. is P&M -- independently we terms in doing in is or investment And think in terms -- are new continue that think the rotation, the corporate asset I of I already other Europe

make and are are we edges either not already to another either for already invest to strategic those rotation think we us, are rotating in area. I the consider helpful

So with the rotation, we already I partnership. and continue we think continue with

I areas. think in -- many So

not partnership in hydrogen. only renewable, have we We partnership green in have

We have are partnership electricity also -- station -- well for station as partnerships vehicles. we in charging going the for -- to charging electrical

have our balance We much structure, to helping financial those which growth already are our affecting of to many things sheet. to already without many, our future

Pepe Sainz

of estimate I around was not €XX rotation. just This debt, including wanted asset because million, some an I of billion really. -- made €XX

-- of end, In Just make is somewhere a end revenue was I of what around it FX. the have bit okay? in assuming higher little and we to clear. the our €XX in billion, So

Ignacio Cuenca Arambarri

Okay.

me Now, to the Mr. give Galan to please, floor let event. conclude this

Ignacio Galan

part very conference this taking in you Thank call. much Okay. for

questions. very thank very, you to Always interesting your want I intelligent. always, As question, for very

our for be off, And always, summer give will information let may you me break. take team available you Investor a days Relations who of very those nice require. any for As you additional

November. much, Thank very you thank So see you you. and in

Ignacio Cuenca Arambarri	Director of Investor Relations and Communications
Ignacio Galan	Chairman & Chief Executive Officer
Armando Martinez	Business Chief Executive Officer
Pepe Sainz	Chief Financial Officer

Iberdrola (IBDSF) 27 Jul 222022 Q2 Earnings call transcript