2005 - 2006 - Pinsent Masons Water Yearbook 2012

SPAIN PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Iberdrola SA
Iberdrola SA is the Spanish electricity utility, with a 41% share of the Spanish electricity distribution
market and extensive power projects in North and South America. The company acquired Obrascon's
Agua Ondagua in 1997, and Sercomsa in 1998. In 2000, Iberdrola acquired 75% of Pridesa, a Bilbao
based water and wastewater engineering company. In 2002-04, Iberdrola sold Pridesa and Agua
Ondagua to RWE as part of a 2000-06 strategy to concentrate on energy.
Iberdrola, profit and loss account
Y/E 31/12 (€ million) 2000 2001 2002 2003 2004
Turnover 7,048 8,133.4 9,594.3 9,488 10,314
Operating profit 1,225 1,578.8 1,564.2 1,823 2,019
Net profit 852.4 905.9 962.6 1,060 1,211
Uruguay
2000 Maldonado 30 year concession 260,000 water & sewerage
The Aguas de Maldonado contract was awarded to Iberdrola (49%), Aguas de Bilbao and Banco
Bilbao Bizaia in January 2000. It covers 74,000 connections in the Department of Maldonado,
including the towns of Punta del Este, Malodonado, Piriapolis, Pan de Azucar and San Carlos. The
consortium bid €15 million for the concession and will invest US$140 million in the project, including
US$5.2 million in 2003. Revenues have been affected by currency weakness, falling from US$19
million in 2001 to US$11 million in 2003, but it did contribute €1 million in earnings during 2004.
Chile
1999 ESSAL Acquisition 500,000 water and sewerage
Iberener acquired 51% of Empresa de Servicios Sanitarios de Los Lagos SA (ESSAL), from the
Chilean Government for US$94 million in 1999. 35% of ESSAL is now held by the Government and
10% by its staff. ESSAL is one of Chile’s smaller water companies and is based in Region X, in the
south of the country. ESSAL serves 125,000 customers (500,000 people) in the Decima Region,
which includes the cities of Osorno and Puerto Montt, with a population growth of 6% per annum.
US$240 million in investments is called for, to increase the number of water connections within its
operating area and to develop sewerage services and sewage treatment facilities, with the aim for
universal sewerage and sewage treatment by 2005. It was announced in 2002 that Iberdrola was
considering selling ESSAL, but no further developments have taken place.
Iberdrola, number of people served internationally
Water Sewerage Total
Chile 500,000 100,000 500,000
Uruguay 260,000 260,000 260,000
Total 760,000 360,000 760,000
Contact Details
Name: Iberdrola SA
Address: Gardoqui 8, 48008 Bilbao,
Spain
Tel: +34 94 479 14 11
Fax: +34 94 479 01 93
Web: www.iberdrola.es
Inigo de Oriol Ybarra (Chairman)
Jose Ignacio Sanchez Galán (Vice Chairman)
Julian Martinez-Simancas Sanchez (CEO)
Jose Miguel Martinez Urquijo (Director, Non-Energy Activities)
325 Pinsent Masons Water Yearbook 2005 – 2006