Strong US and International Performance Earns Iberdrola Group $3.1 Billion of Net Profit for 2014

NEW GLOUCESTER, Maine, Feb. 18, 2015 /PRNewswire/ --

Key Aspects of 2014

• 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. (IBDRY:US:OTC), parent company to Iberdrola USA, reported its 2014 financial results today in Madrid. Here are some of the highlights from that announcement. You may view the full Iberdrola S.A. news release and obtain other shareholder information at our online shareholders and investors center.

Group results
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 Spain pushed 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.

Good U.S. performance
"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.

Financial strength continues to improve
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).

Board of directors meeting 
The Iberdrola board of directors met yesterday and 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

Future outlook
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.

Iberdrola USA is the U.S. subsidiary of global energy leader Iberdrola, S.A. The Iberdrola USA companies employ about 5,000 people with operations in 24 states from New England to the West Coast, providing electricity generation, transmission and distribution, natural gas storage and distribution, and energy services. For more information, please visit our website: www.iberdrolausa.com. Follow us on Twitter: @IberdrolaUSA 

SAFE HARBOR 
This announcement is not an offer for sale or exchange of securities or request for offers for sale or exchange of securities. Shares in IBERDROLA S.A may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act, as amended.

FORWARD-LOOKING STATEMENTS
This communication contains forward-looking information and statements about IBERDROLA S.A., including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words "expects," "anticipates," "believes," "intends," "estimates" and similar expressions.

Although IBERDROLA, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of IBERDROLA, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of IBERDROLA, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in documents sent by IBERDROLA, S.A. to the Comision Nacional del Mercado de Valores and accessible to the public.

Forward-looking statements are not guarantees of future performance and have not been reviewed by the auditors of IBERDROLA, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to IBERDROLA, S.A., or any of its members, directors, officers, employees or representatives are expressly qualified in their entirety by the cautionary statement above. All forward looking statements included herein are based on the information available on the date hereof. Except as required by applicable law, IBERDROLA, S.A. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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