Large Spanish listed companies earned 52,000 million euros in 2022

Major Spanish listed companies managed to minimize the effects of the war and closed 2022 on the threshold of a new record, with a combined profit of 52,000 million euros and some of them with historic results, in a year marked by inflation, especially energy inflation, and rising interest rates.

According to data collected by Efe while waiting for textile giant Inditex to present its accounts on March 15, the earnings of the companies that make up the Ibex 35 in 2022. just 3% below 53,500 million won by the same companies a year ago (without the textile group).

In a context marked by macroeconomic instability resulting from the Russian invasion of Ukraine, only one company listed on the Ibex 35 presented red figures in 2022: telecommunications infrastructure operator Cellnex, with losses of 297 million.

However, up to 12 listed companies worsened in 2021, a record year in which post-pandemic economic recovery was evident, most prominently Telefónica and steelmaker ArcelorMittal.

Telefónica and ArcelorMittal are deteriorating

The Spanish operator Telefónica earned 2.011 million in 2022, down 75% —a quarter— than a year ago, when he made capital gains from various corporate deals.

For its part, the steel group ArcelorMittal reduced profit by 38% to 9,302 million dollars (8,696 million euros), burdened by the decline in demand for steel in the last part of the year. Other groups that recorded a significant decline during the last financial year are the construction company Ferrovial, the banks Bankinter and Caixabank, and Socimis Colonial and Merlin.

Repsol, IAG and BBVA are improving

On the other side of the coin is the oil company Repsol, which earned 4.251 million in 2022, 70% more than the previous year, thanks to the increase in the price of hydrocarbons caused by the war.

International Airlines Group (IAG), which includes Iberia, British Airways, Vueling, Aer Lingus and Level, left behind losses of almost HRK 3,000 million in 2021 to record a profit of HRK 431.5 million thanks to the recovery of tourism. Likewise, BBVA achieved a record profit of 6,420 million, 38% more, in a context characterized by the increase in interest rates approved during the last year.

He also highlights the progress of companies such as Acciona Energía, Banco Santander and energy companies Endesa and Naturgy.

incomes are growing rapidly

Although cumulative profit of 35 companies that make up the stock market index reference in Spain currently did not exceed the previous year’s figure, revenues improved those of 2021 by 28%.

The combined turnover of the Ibex 35 reached €552,000 million, a figure that will be even higher when Inditex presents its accounts in the coming weeks. Likewise, this year’s revenues are higher by 19% compared to 2019, the last year before the pandemic, which could not be improved in 2021 despite record profits.

Banking and energy, a record

By sector, large Spanish banks and energy companies closed the financial year with record numbers, which shows how they managed to capture both the rise in interest rates and the rise in energy prices.

The six listed Spanish banks —Santander, BBVA, Caixabank, Sabadell, Bankinter and Unicaja— led the Ibex 35 with a total profit of 21,000 million, concentrating 40% of the profits of large Spanish listed companiesand exceeding the volume from the previous year by 5%.

In addition to the aforementioned BBVA, Banco Santander also set a new record in 2022 after earning 9,605 million, up 18%, thanks to growth in commercial activity, asset quality and cost control.

The big ones in the energy sector — Iberdrola, Repsol, Endesa and Naturgy — also achieved record results in the war year, which caused an unprecedented energy crisis in Europe and led to market intervention. Ahead of Repsol was Iberdrola, which set a new record by earning 4,339 million in 2021, up 11.7%, despite a decline in the national market due to regulatory and tax measures and rising costs.

Endesa increased its profit by 77% to 2,541 million, although this improvement did not help it beat its record, something Naturgy managed to do by presenting a profit of 1,649 million, up 36%. Both sectors will have to face new temporary taxes approved by the Government with the aim of taxing the extraordinary profits made in the current macroeconomic context.

Six Spanish banks will pay 1,100 million this year, of which 400 million Caixabank, while four energy companies have calculated that the new tax will have a similar cost, of 1,158 million, Repsol will have to pay the most (450 million).