AVANGRID’s Achievements in Its 1st Year Confirm that Iberdrola’s Model Works on Both Sides of the Atlantic
ORANGE, Conn. — March 31, 2017 — AVANGRID, Inc.’s accomplishments in its first year confirm that the Iberdrola vision of providing sustainable energy for a better future is a winning formula in the United States, Iberdrola (IBDRY: US) Chairman Ignacio Galán said.
Addressing shareowners today at the Iberdrola Group’s Annual General Meeting in Bilbao, Spain, Galán highlighted AVANGRID’s achievements. These include Avangrid Renewables being declared the preliminary winner of the right to develop its first offshore wind farm off the coast of North Carolina; major investments in U.S. energy infrastructure; and strong performance from its electric and natural gas utilities.
AVANGRID (NYSE: AGR) was formed in the December 2015 merger of Iberdrola USA and UIL Holdings Corporation. Bilbao-based Iberdrola is its majority shareowner.
At the Iberdrola shareowners’ meeting, Galán pointed to 2016 highlights:
- Investment in America: AVANGRID invested $1.9 billion in its U.S. Renewables and Networks utility businesses, a 64% increase over 2015. The company has capital plans to invest an additional $9 billion in its companies through 2020.
- Clean Energy Infrastructure: AVANGRID completed 208 megawatts of wind in 2016, with another 536 megawatts of new wind projects under construction and expected to be operational by the end of 2017. In addition, there are 66 megawatts of new solar generation expected to be operational in 2018. AVANGRID is the No. 2 U.S. wind operator, with 5.9 gigawatts of wind and solar generation.
- Rate Stability: Three-year rate agreements in New York and Connecticut, along with FERC-regulated transmission, provide rate certainty to more than 80% of AVANGRID’s rate base.
- Financial Performance: AVANGRID reported 2016 net income of $630 million, or $2.04 a share. It affirmed a quarterly dividend of 43.2 cents a share, and announced a commitment to increasing it starting in 2018, subject to approval of its board of directors.
- Community Commitment: The Avangrid Foundation distributed millions of dollars in grants and giving during 2016, supporting initiatives that enhance the quality of life where AVANGRID and its companies operate.
“Slightly over a year ago, the birth of AVANGRID was realized in America. Now, AVANGRID is increasingly recognized for a track record of success, both in its Renewables and Networks businesses, and respected for its leadership in the U.S. energy industry,” Galán said.
Galán noted that, with operations in 27 U.S. states, AVANGRID and its companies serve approximately 3.2 million customers, employ approximately 6,800 people and support thousands of jobs across the supply chain. He said he expects AVANGRID to continue to contribute positively to the Iberdrola Group’s success internationally.
During his speech Galán reviewed Iberdrola’s performance throughout 2016.
With a net profit of €2.7 billion euros, almost 12% more than the previous year, and a gross investment of €5 billion, Iberdrola Group exceeded targets set out for the 2014-2016 period, with average annual net profit growing at almost 8% — twice as much as projected — exceeding the initial target by approximately €200 million.
These results have allowed the group’s Board of Directors to propose to its shareholders an increase of remuneration of almost 11% — with respect to the amount pledged for 2015 — of €0.31 per share.
Iberdrola and AVANGRID are strongly committed to supporting U.S. operations and growth. Driving this growth is a plan to significantly increase investments in AVANGRID’s Networks and Renewables businesses to an average of $2.25 billion a year through 2020, a 15% increase from its previous long-term plan.
As part of the Iberdrola Group, AVANGRID enjoys access to Iberdrola’s global resources and expertise. Iberdrola’s experience with offshore wind generation will be an asset as AVANGRID develops its first offshore wind farm off the coast of Kitty Hawk, North Carolina. The U.S. Bureau of Ocean Energy Management in March awarded AVANGRID a $9 million bid allowing it to lease the site for wind energy. Iberdrola Group has developed several such projects internationally.
AVANGRID also shares Iberdrola’s commitment to clean energy and sustainability. In 2016, Iberdrola was named the No. 1 utility company on the Dow Jones Sustainability Index. With nearly 6 gigawatts of installed wind and solar facilities, AVANGRID is focused on generating renewable energy and reducing its carbon footprint. As of 2016, its carbon emissions were approximately eight times lower than the U.S. utility industry average.
Business, commercial and industrial customers looking to “green up” their portfolios are supporting strong demand for clean, renewable energy. In 2016, AVANGRID completed its 208-megawatt Amazon Wind Farm US East in North Carolina. Long-term power purchase agreements are in place for all new projects.
As the industry embraces clean energy and technology, AVANGRID is helping supply the intellectual resources that will be needed to support it. The company is focused on attracting talent, establishing partnerships with top universities in the United States and abroad. Working with the Iberdrola Foundation, the company last year provided scholarships worth $750,000 to support 13 graduate students researching energy, the environment and data science.
AVANGRID is also transforming the way it does business. Having completed the second phase of integration in the wake of the merger of Iberdrola USA and UIL Holdings, CEO James Torgerson recently announced a “Forward 2020” initiative that targets making AVANGRID best-in-class in its industry by the year 2020.
“We delivered strong financial results in our first year in business, executing on our growth strategy and making investments that will result in cleaner, smarter, safer and more reliable energy systems for our customers,” Torgerson said. “I am very confident in our long-term outlook, and we are working aggressively to make AVANGRID a U.S. sustainable energy leader, recognized for top-tier performance in its industry.”
# # #
AVANGRID, Inc. (NYSE: AGR) is a diversified energy and utility company with more than $31 billion in assets and operations in 27 U.S. states. The company owns regulated utilities and electricity generation assets through two primary lines of business, Avangrid Networks and Avangrid Renewables. Avangrid Networks is comprised of eight electric and natural gas utilities, serving approximately 3.2 million customers in New York and New England. Avangrid Renewables operates 6.5 gigawatts of electricity capacity, primarily through wind power, across the United States. Avangrid employs approximately 6,800 people. Iberdrola S.A. (Madrid: IBE), a worldwide leader in the energy industry, owns 81.5% of the outstanding shares of Avangrid common stock. For more information, visit www.AVANGRID.com.