Banco Sabadell : According to the press, the vice-president for Ecological Transition (Teresa Ribera) said in a statement that it is necessary to see if energy companies continue to make these extraordinary profits and to take into account the large investments required for the energy transition, in the context of the application of the current windfall tax on these companies. These statements come after the European Commission declared last week that in 2023 the windfall profits observed in 2022 in these companies will no longer occur and after the statements of Repsol’s chairman in the line of diverting investments to other countries if “legal and fiscal stability” is not maintained in Spain. These statements would run counter to the PSOE-Sumar agreement to review the levies on banking and energy companies with the aim of readapting them and maintaining them once their current period of application expires (2023 and 2024).
Assessment: News with a positive bias insofar as, if confirmed, it could have a positive impact on the application of the windfall tax on 2023 and, to some extent, it would cool its possible adaptation to maintain it over time.
We recall that currently the tax on energy companies would apply during 2023 and 2024 (1.2% of the turnover obtained in those companies with revenues over €1,000 million, excluding regulated businesses and activities outside Spain and outside the Spanish mainland) and would be appealed by the main companies in the sector. We recall that the annual impact on EBITDA of the companies under coverage would be approximately €200m at Iberdrola (around 1% EBITDA’23), €300m at Endesa (7% EBITDA’23 estimated), €300m at Naturgy (6% EBITDA’23) and €450m at Repsol (6% EBIT’23 estimated). None of Acciona Energía (or its parent company Acciona), Solaria, or Ecoener are impacted by this tax.