The Ibex's largest companies overcome the energy crisis with profits of €11,157 million
Major electricity companies are betting on rethinking the schedule for closing nuclear plants
BarcelonaFrom an energy perspective, 2024 was marked by the end of the great crisis caused by the Russian invasion of Ukraine. Prices for both electricity and oil moderated and, in the case of electricity, there were even days with negative prices in the wholesale market, something that had never happened in Spain. But the large energy companies that are part of the Ibex 35, the index of the Spanish stock market, overcame the ordeal of price moderation with significant profits. The four largest companies in the sector – Repsol, Endesa, Iberdrola and Naturgy – together obtained a net profit of 11,157 million euros, almost 4.3% more than in 2023. 2024 (start of the war in Ukraine), when the four major companies achieved a joint record profit of 12,780 million euros. However, these companies' 2024 earnings are the second-best record since 2019, the year before the Covid-19 pandemic.
However, there is joy in every area. Iberdrola, the electricity company chaired by Ignacio Sánchez-Galán, closed 2024 as the best year in its history, with a record net profit of 5.612 billion euros. In fact, the company continues on an upward trend year after year, which represents an increase of 17% compared to the previous year, driven by historic total investments of 17 billion euros per year, according to the company, thus exceeding its profit forecast of around 5.5 billion euros.
The company has many interests in the United States, but Sánchez-Galán is convinced that the arrival of the presidency of Donald Trump will not affect it too much because demand in the country continues to increase "more than ever" and investments are needed "in networks and energy like never before." "Everything will work well," Sánchez-Galán told analysts, and indicated that the United States is a strategic country for the company. He also stressed that the networks do not depend on the federal administration (Trump), but on each of the states, which are encouraging investment. In addition, the president of Iberdrola indicated that he does not foresee "practically any impact" from Trump's tariffs.
Unlike Iberdrola, which is very internationalized, the other large electricity company in the State, Endesa, has most of its business in Spain. The company chaired by José Bogas closed 2024 with a giant leap in its profits. Endesa increased its profits by 154% during 2024, to 1,888 million euros. However, profits are lower than the 2,541 million in 2022. The company has attributed the results to the good evolution of the EBITDA and the normalization of the electricity and gas energy markets and the absence of extraordinary impacts. Endesa recorded an EBITDA of 5,293 million euros, 40% more than in 2023, due to the contribution of all business segments (conventional generation, renewable generation, distribution and marketing). The multinational explains that the "solid metrics" for 2024 will give it the capacity to "expand and accelerate" its investment plan until 2027.
In fact, Endesa has taken a further step in its commitment to the Spanish market and to renewables. The company has closed the purchase of an entire portfolio of hydroelectric plants from the Acciona group for 1,000 million euros, having received all the authorisations. Specifically, Endesa Generación acquires the entire share capital of Corporación Acciona Hidráulica SL (CAH), belonging to Acciona Energía Renovables, of the Acciona group. "The acquisition means investing in high-quality renewable assets and offers us important operational synergies," said Endesa CEO José Bogas. The purchase includes 34 hydroelectric plants, which add up to a total installed capacity of 626 MW, and which generated around 1.3 TWh in 2023. With the operation, Endesa reaches an installed hydroelectric capacity of more than 5.3 GW in the Iberian Peninsula0 and reaches a capacity.
International geopolitical uncertainty and the drop in the price of crude oil have taken their toll on Repsol, which in 2024 obtained a profit of 1,756 million euros, 45% less than the previous year. Naturgy, with the debate on its shareholding still unresolved, closed 2024 with a net profit of 1,901 million euros, 4.3% less than the previous year.
Tax and nuclear
The presentation of results of the major energy companies has been marked by two aspects: the end of the extraordinary tax, which they opposed, and which, in the case of Repsol, served to reactivate its investments in the State. The company plans to invest between 3.5 and 4 billion in 2025. Among the investments that 800 million euros have been reactivated for an eco-plant in the Camp de Tarragona.
The other big debate that has been opened is whether the closing schedule for nuclear power plants in the State should be maintained. The president of Iberdrola has defended this Thursday an "in-depth" analysis of the impact of the closure of Spanish nuclear power plants between 2027 and 2035, considering that this technology is "absolutely necessary to maintain stability and keep the lights on." José Bogas, CEO of Endesa, has expressed his "desire" to discuss the closure of nuclear power plants and the fear that the hypotheses included in the latest update of the National Integrated Energy and Climate Plan (PNIEC) - the Spanish government's roadmap for the decarbonisation of the economy - especially what could compromise the security of supply.
