Iberdrola continued to strengthen its balance-sheet and boost its strong financials in 2014. In keeping with the commitments set out in the 2014-2016 Outlook, the company reduced its debt by about €1.5 billion compared to 2013, bringing it down to €25.34 billion, adjusted by the cash dividend paid last December.

There are three main reasons for this improvement in debt levels: the generation of positive cash flows, the progress made in the divestment plan for non-strategic assets - such as the sale of the group's stakes in the capital of EDP and BBE - and the control exerted over investments. 

The company has also recorded improvements in its financial ratios. The net debt/Ebitda ratio is now 3.6 times (down from 4) and the ratios between funds from operations (FFO) and net debt and retained cash flow (RCF) are 21.5% and 18.6% respectively.

Gearing stood at 41.7% at the end of 2014, compared to 43.2% in December 2013. The management by the Group also allowed to improve the net cost of the debt, bringing it down to 4.35% and extending the average debt maturity to 6.3 years.

The company also has excellent liquidity: some €9 billion at year-end.

The most important finance operations carried out by Iberdrola in 2014 include the bond swap last October and the issue of 8-year green bonds worth €750 million with a 2.5% coupon rate. It was the first issue of this kind by a Spanish company. 

The Iberdrola Group's sales of non-strategic assets were valued at €1.03 billion in 2014, mostly outside Spain:  €912 million, representing 88% of the total.

Iberdrola continues to progress with its divestment plan, totalling some €2.5 billion between 2012 and 2016, with a view to maintaining the Group's strong financial position.

Iberdrola recorded a gross operating profit (Ebitda) of €6.96 billion (+3.1%) in 2014, with net earnings of €2.33 billion (-9.5%) at year-end.

These results demonstrate further progress in meeting the Ebitda and net earnings projections for the 2014-2016 period, underpinned by a solid business mix, balanced international diversification, active financial management and high operational efficiency.   

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