Buenas tardes, señoras y señores. Good morning, ladies and gentlemen. First of all, we would like to offer a warm welcome to all of you who have joined us today for our 2022 First-Half R esults Presentation. As usual, we will follow the normal format given in our presentations. We will begin with an overview of the results and the main developments during the period given by the senior executive team that usually is with us. Our Chairman and CEO, Mr. Ignacio Galán, Mr. Armando Martínez, Business CEO, and finally, Mr. Pepe Sainz, CFO. Following this, we'll move onto the Q&A session. I would also like to highlight that we are only going to take questions submitted via the web. Please ask your question only through our webpage, www.iberdrola.com. Finally, we expect that today's event will not last more than 60 minutes.
Hoping that this presentation will be useful and informative for all of you. Now, without further ado, I would like to give the floor to our Chairman and CEO, Mr. Ignacio Galán. Thank you very much again. Please, Mr. Galán.
Good morning, everyone, and thank you very much for joining the results presentation. In the first half of 2022, net profit reached EUR 2,075 million, up 35% from 2021, driven by the increased result in all our geographies which offset the 26% decrease in the Spanish net profit. EBITDA grew 18% to EUR 6,444 million, driven mainly by United States and Brazil. Operating cash flow reached EUR 5,460 million, 31% more than the first half of 2021.
Gross investment increased by 5% to EUR 4,741 million, for a total of EUR 10.2 billion in the last 12 months, in which we have installed 3,400 MW of new renewable capacity with 10,100 more already under construction secured with PPAs. After having been awarded in U.K. close to 1,400 MW of offshore wind, 396 MW of onshore wind, and 326 MW of solar PV in the recent CFD allocation round. In networks also, in the U.K., Ofgem published the draft determination for RIIO-ED2, including the TotEx allowance of the ScottishPower of GBP 3.4 billion for the next five years.
Neoenergia was as well awarded with 2,000 km additional transmission high voltage capacity, transmission capacity in the last transmission auction organized by the regulator. With all these new project, we are reinforcing even more our growth prospect for the coming years, an expansion that is fully compatible with our balanced business profile, in which our strong financial position with liquidity is reaching EUR 25 billion. Finally, in the annual shareholders meeting celebrated last month, we registered a quorum of 72%. All the proposal included in the agenda were approved with an average favorable vote of 98%, including an annual shareholder remuneration of EUR 0.449 per share, 6.4% higher than the previous year. As mentioned, EBITDA was up 18% to more than EUR 6.4 billion, with a positive evolution in all countries except in Spain.
Networks EBITDA increased by 32%, contributing already through 53% of group EBITDA, thanks to the higher asset base in all geographies. Additional revenue due to tariff increases in the U.S. and Brazil. The positive impact of the order issued by the New York regulator does allow us to register certain regulatory asset. Going forward, this will also provide more stability to the group results. Energy production and customer EBITDA increased by 9%, driven by 3,400 new capacity installed last year, which offset the lower wind and hydro output mainly in Spain, and the best evolution in retail, both in Spain and U.K. This was partially compensated by a positive impact relating to court rulings.
As mentioned, Spain was the exception to the general positive evolution of consolidated first half result, mainly due to the complex energy context. Production decreased by 5%, driven by lower hydro and wind output and nuclear outage, forcing us to increase production with expensive gas and to purchase additional energy in wholesale market. These two effects impacted our margin as we maintain the fixed prices previously agreed with our customers. Results were also affected by the negative impact of regulatory orders and court ruling mainly in networks, as well as by increasing amortization, partially offset by lower charges. Overall, Iberdrola Spain net profit decreased by 26%. In the first half of 2022, we continued to increase our investment 5% against the same period last year, reaching more than EUR 4.7 billion, with 90% allocated to renewables and networks.
Renewables was the largest destination of group investment with 7% increase year-on-year, thanks to the construction of offshore and onshore projects, mostly in the U.S., U.K., and Brazil. Networks investment increased slightly, representing 13% of the total, with a growth coming from Brazil, U.K., and Spain. We expect to accelerate investment in the last month of the year, a usual trend that could be faster if administrative and permitting processes continue to speed up. Over the last 12 months, we have put in service 3,400 MW of solar PV, onshore wind, as well as hydro and battery storage, reaching 38,700 MW of renewable capacity. Additions include 1,200 MW of solar PV in Spain, U.S., Brazil, and Australia, and Portugal.
More than 1,000 MW of onshore wind in Brazil, the U.S., Spain, and the rest of the world. Especially in Australia, where we have significant growth expectation thanks to our pipeline and the increased support of clean energy provided by the federal and regional governments. We have also installed close to 1,000 MW of hydropower battery storage in Portugal after completing the construction of two of the three dams of the Tâmega giga battery, Gouvães and Daivões. Last week, in fact, the Prime Minister, António Costa, inaugurated this complex, the largest clean energy project in Portugal's history and one of the most relevant pumped hydro project built in Europe in the last 25 years. Finally, we commission 100 MW of battery storage in the U.K., Australia, and Spain.
On top of that, we have more than 10,800 MW already under construction secured with PPAs globally, of which 5,800 correspond to offshore wind. To make a detail by geographies, almost a third comes from United States, mainly in offshore wind. 25% from Spain and Portugal, mainly solar PV. More than 20% from the U.K., mostly related to the offshore, onshore wind and solar. The remaining 20% is located in Brazil and the rest of the world, including our offshore wind project under construction in France and Germany. A significant part of this secure capacity correspond to auctions won very recently that will provide additional growth in the coming years.
In the U.K., we were awarded with 2,090 MW in the recent auction of contracts for difference, including 1,400 of offshore wind corresponding to our East Anglia THREE project. 400 MW of onshore wind in five different locations and 326 MW of solar PV for a total capacity of 326 MW. All this capacity has procurement contracts already closed or hedged and will be in operation from 2023 to 2027. The total investment of this project will be in the range of GBP 3.7 billion, with expected return between 150 and 200 basis points over WACC. Over the last quarter, we also secured significant additional investment in networks.
In the U.K., Ofgem published its draft determination for the RIIO-GD2 framework, which, as you know, covered the period between April 2023 and March 2028. Total TotEx for ScottishPower reached GBP 3.4 billion in the nominal terms, with an equity remuneration of 4.75% post-taxes that we adjusted with inflation plus incentives and a low leverage of 60%. We expect to continue improving this framework upon the final decision that will be taken by December. We add to this investment the remaining investment of RIIO-GD1 and the GBP 1.8 billion already approved for transmission in RIIO-T2. Altogether, we reach close to GBP 6 billion in networks investment in U.K. up to 2028.
Finally, in Brazil, Neoenergia was awarded as well with almost 2,000 km of high voltage lines in the transmission auction held in June, reaching a total of 8,000 km of transmission line in 18 substations obtained in the auction held in these countries in 2017. This project, which will be built up to 2027, will represent total investment of BRL 15 billion with an average spread of 150-200 basis points over WACC. Moving on to energy policy and regulation, we see common effort in all geographies to reinforce self-sufficiency, as well as to protect consumers from increasing energy prices. The European Union has just agreed on the reduction of gas consumption that will reach up to 10%-15% in the coming winter.
In addition, the EU Green Taxonomy was finally approved, including on a transitory basis, nuclear and gas. In the case of gas, the taxonomy include other restrictive conditions. The European Parliament also adopted a more ambitious target for energy efficiency and renewable energy. Following the latest communication from the Commission, the debate on future electricity market, European electricity market design is starting. In the U.K., a new energy bill was introduced, including incentives for green hydrogen and heat pumps. Ofgem is consulting on reform of the price cap methodology and the cost recovery mechanism, which hopefully will contribute to solve current inefficiencies. Additionally, the government's introduced a temporary increase in taxes on local exploration and production of oil and gas.
In Spain, a cap on gas prices in the wholesale electricity market was introduced, creating a subsidy to gas use for electricity production that is financed by consumers and the regulated tariff, and also by customers in the liberalized market as they renew their contracts. As there has been an announcement of a potential tax on oil and gas electricity companies with excess profit, as far as I know, the energy companies which are increasing their reserve in Europe are oil and gas companies, not electric utilities. On the other hand, following the mandate of the European Commission, the Spanish government will reform the design of the regulated tariff, which is unique in Europe, in order to avoid price volatility. In the United States, the New York regulator has published an order that allow us to accrue certain regulatory asset in consolidated accounts.
This will provide more stability to revenues. A new rate case was filed in New York and CMP in Maine. Also sent a notice of intent to the Maine Regulatory Commission. We expect new rate cases shortly in Massachusetts and Connecticut. In New Mexico, the New Mexico Public Regulation Commission is starting to move forward with appointment of these new members by January 2023. Finally, in Brazil, the government is reducing taxation of electricity. Our two listed subsidiaries, Avangrid and Neoenergia, have already presented their first half results, showing a strong performance in both cases. Avangrid net profit increased by 46% to $429 million, mainly thanks to the positive impact of new rate cases, increased renewable production, and the restructuring gain from the agreement with CIP. Adjusted EBITDA reached $1.2 billion.
Gross investment reached $1,571 million, with $850 million allocated to networks and the rest to renewables. In the first half, Avangrid installed 281 MW of offshore wind, and the company has close to a hundred MW of onshore wind and solar under construction. 50% of this capacity will be operational in the next six months and the rest of 2023. Additionally, the company is progressing in the construction of 1,600 MW of offshore wind projects. In Brazil, Neoenergia net profit grew 14% to reach BRL 2,287 million, mainly driven by higher asset base in networks, the impact of tariff reviews, and the consolidation in Neoenergia Brasília. EBITDA increased by 40% to BRL 6,395 million.
Gross investment reached BRL 4,569 million, 30% more than last year, and almost 70% allocated to networks and 25% to renewables. Our operational performance demonstrate the resiliency of Iberdrola business model in the current macro scenario. 90% of our European production comes from zero-emission sources, with gas contributing only 4% of our EBITDA in Europe. We do not depend at all on gas or oil from Russia. Also, following our procurement policy, we have already secured supplies for 2022, 2023, with prices close to hedge. In terms of financial structure, around 71% of our debt has fixed rates. Our average debt maturity is six years. Our liquidity position has reached EUR 25 billion.
Due to our strong cash flow generation, up 31% to EUR 5,560 million in the first half, our FFO to adjusted net debt ratio has improved 110 basis points to 24.7%. Finally, our general shareholders meeting held last month approved a 6.4% increase in average shareholder remuneration. Accordingly, a supplementary dividend of EUR 0.274 per share will be paid next week. This, together with the interim dividend of EUR 0.170 per share paid in February and the final dividend of EUR 0.005 per share already paid after our general meeting, leads to a total remuneration of EUR 0.449 per share.
I will now hand over to the CFO, who will present the group financial results for the day. Pepe?
Thank you very much, Chairman. Good morning to everybody. As the Chairman has explained, the EBITDA was 18.4%, up to EUR 6.4 billion, and the net profit grew 35.5% to EUR 2.1 billion. Our FX evolution has had a positive effect on results of almost EUR 400 million at the EBITDA level and EUR 6 million at the net profit level, as we have already hedged, we are already hedged for the year. In general terms, the dollar rose against the euro by an average of 9.8%, the pound by 3.5%, and the real by 17%. Revenues increased 30% to EUR 24.4 billion, and procurements grew 42%, reaching EUR 14.6 billion.
As a consequence, gross margin rose by 16% to EUR 9.9 billion and 9% excluding the FX impact. Net operating expenses rose by EUR 372 million to EUR 2.5 billion as a consequence of the group's growth and FX appreciation. Excluding FX, net operating expenses grew 10%. This evolution was also negatively affected this quarter by EUR 80 million positive in the Q2 of 2021 impact from the asset rotation at the other operating income level. Although in the first quarter there was a positive impact accounted for EUR 73 million in pensions. Analyzing the results by business and starting by networks, its EBITDA grew 32% to EUR 3.4 billion. EBITDA included two non-recurring impacts in Q2, a positive in the U.S., partially compensated by a negative in Spain.
Nevertheless, our increasing asset base, inflation recognition, and operating efficiency are the recurring factors that explain the good evolution of the business. In Spain, EBITDA decreased 24.4% to EUR 632 million, mainly due to the already mentioned EUR 195 million negative one-off linked to a legal case on determined assets and has been accounted in this quarter. There was also EUR 22 million negative impact as a consequence of positive settlements accounted for in 2021. In Brazil, EBITDA grew 33% to BRL 5,807 million, driven by our increased asset base, positive increase in distribution from tariff adjustments and operating efficiency.
In the U.S., IFRS EBITDA was 89% up to $1,265 million after a $550 million positive one-off recognized in this quarter, linked to the New York order that allows to accrue the recognition of certain regulatory assets into group earnings, driving, as the chairman has said, more stability in future revenues. In addition, there is a recurring positive evolution of the business derived from the rate cases linked to higher investments and higher asset base. U.S. GAAP EBITDA increased 15% to $927 million, not accounting for the above-mentioned impact, which is only in the IFRS. Finally, in the U.K., EBITDA increased 4.5% to GBP 465 million, thanks to our higher asset base.
Energy production and customers business, EBITDA grew 9% to EUR 3.1 billion, and 5% excluding EUR 109 million of FX impact. In Spain, EBITDA was EUR 1,400 million, 6.6% up, despite the very high price environment as a consequence of the group's fixed price policy sales, as the chairman has explained previously. In the U.S., EBITDA decreased 22% to $351 million due to the positive contribution of the Texas cold snap accounted in the first quarter of last year, partially compensated by a 5.2% higher output due to new installed capacity and better wind resource versus 2021.
In the U.K., the EBITDA was flat to GBP 441 million, improving the results of the first quarter in a context of higher energy procurements at higher prices due to the higher sales than expected in the SVT tariff, compensated by higher wind output at better prices. In addition, the SVT will be raising again in October, so we expect that the results will continue to improve. In Mexico, EBITDA grew 11.6% to $467 million. 2021 was negatively affected by the Texas cold snap. This has been partially compensated by lower thermal production in 2022. In addition, there is a $29 million positive one-off. In Brazil, EBITDA grew 56%, improving thirty-three percent increase at March to BRL 936 million, driven by the Termo Pernambuco CCGT.
Finally, in the rest of the world, EBITDA grew 20% to EUR 206 million, with higher contribution from both onshore and offshore business across the different geographies. EBIT was up 21% to EUR 3.9 billion. D&A plus provisions grew 14.5% to EUR 2.5 billion, and 8.6% excluding the FX impact. D&A grew mainly due to the higher net worth asset base and activity, renewable growth, and the FX impact. The growth was 12%. Provisions were up 37% affected by FX and some negative one-offs for around EUR 40 million. Net financial expenses grew EUR 444 million to EUR 960 million.
Debt-related costs explained EUR 291 million, 159 due to the higher cost of debt in Brazil that, nevertheless, is more than compensated at the EBITDA level by revenues indexed to inflation. Excluding the debt in Brazil, our cost of debt improved 4 basis points to 2.86%. There is also a EUR 49 million increase due to the higher average net debt balance. Non-debt-related costs increased EUR 153 million. Half of this impact is explained by net positive one-offs accounted for in Q2 2021, and another half linked to the FX hedges. Iberdrola's balance sheet is well positioned for the rise in inflation, as the chairman has explained, as we have had a prudent approach in funding. Our debt is 88% fixed if you exclude Neo, including EUR 4 billion of forward start swaps.
As you can see in the slide, our fixed debt structure is much higher than our fixed revenue structure. Around 30% of our EBITDA is directly linked to inflation, and another 20% indirectly linked. At present, we maintain an ample liquidity up to EUR 25 billion, 27 months coverage of financial needs, and 21 months in a stress scenario. Iberdrola has been able to close to date transactions totaling over EUR 5 billion in different markets in very competitive conditions, anticipating all our second half financing. In addition, our sources of financing continue to be highly diversified. Currently, the bond and commercial program market represents 66% of our sources. Bank finance is 14%, giving us opportunity to increase this kind of funding if required.
Supranational lenders that have increased in these first months have another 14% share. Our average life debt is six years. As you can see in the slide, our strong cash flow generation with our FFO up 31% in the period compensates the gross investments and even allowing the company to maintain debt under control. As a consequence, our adjusted credit metrics continue to improving.
We have had a working capital active management that has allowed us to neutralize negative impacts of possible working capital impacts on commodities in our debt. Our adjusted net debt to EBITDA improved to 3.2x . Our FFO adjusted net debt rose to 24.7%. Our retained cash flow adjusted net debt was up to 22.4%, and our adjusted leverage ratio strengthened to 40.7%. Net profit grew 36% to EUR 2,075 million. Equity method includes a EUR 218 million of positive non-recurrent impact as a result of the Vineyard Wind restructuring agreement reached with CIP that was accounted in the first quarter. In this second quarter, this is partially compensated by a EUR 60 million of impairment in our U.S. engineering profit.
In addition, the negative one-off related to U.K. taxes recorded in 2021 favorably affects the evolution of our net profit, with positive evolution in all countries except Spain. Now, the chairman will conclude the presentation. Thank you.
Thank you, Pepe. This set of results demonstrate that despite the current energy and macro scenario, we have continued to make progress ahead of our plans. We expect this trend will continue to the second half of the year, driven by an expected normalization of hydro and wind production, the additional 3,000 MW of renewable capacity along the year, and the increase in networks investment to reach EUR 4.5 billion in the full year. We also expect our operating result will reflect the positive evolution of exchange rates as seen in the first half, mainly in Brazil and United States. Thanks to our debt structure, we don't expect impact of higher interest rate in our financial costs. All in all, we reaffirm our net profit outlook for 2022 in the range of EUR 4 billion-EUR 4.2 billion.
To conclude, over the first six months of 2022, we have exceeded our target in the challenging environment with our global diversification. We have continued expanding our footprint to ensure additional growth in the years to come, taking advantage of the increasing investment opportunities linked to the decarbonization and energy transition. We will provide more information about our plans and projections for the next years in the coming Capital Markets Day that will take place in London in November. Our investor relations team will send you all the details in the next few weeks. We now will be more than happy to answer your questions.
Okay. Before starting, sorry, the Q&A session, and given that today is a day full of results, we will try to be brief in the duration of this event. For that reason, and summarizing, the following professionals have asked the question that I will be putting to the top management in the next few minutes. Alberto Gandolfi from Goldman Sachs, Rob Pulleyn from Morgan Stanley, Manuel Palomo, Exane BNP Paribas, Javier Suarez, Mediobanca, Fernando Garcia, Royal Bank of Canada, Jorge Alonso, Société Générale , Ahmed Farman, Jefferies, and finally, Jorge Guimarães, JB Capital Markets. The first question is related to the guidance. What can we expect for the second part of the year in terms of EBITDA and net profit, considering the new renewables capacity, et cetera? Same EBITDA as H1 is recurring EUR 6.2 billion.
I think the main factors is, on one side, the level of production. We expect to normalize the year. The recovered nuclear plant of Cofrentes is now producing already. We now have a recovery in the second quarter, and we expect a better hydro output in the second half of the year. We know that we are in a terrible drought in Spain, but I think we hope that that will end in some time. This will reduce the need of energy purchase in wholesale markets, which I think that was affecting negatively to ourselves. We will have, as well, certain contribution of additional investment. As Tina mentioned, we have around 3,000 MW of renewables that is going to be installed during the year.
We will continue making the investment in our networks. We will up to EUR 4.5 billion in these three months. We will generate as well certain returns. It has been mentioned, I think the positive impact of FX in operating result, especially in Brazil and United States. That's why I think we are really maintaining our guidance of EUR 4 billion-4.2 billion. I think you have to be aware of this very volatile environment, and I think this very volatile environment, we would like to be, let's say, prudent, or we would like to use the word conservative.
Second question is, what is your best guess of net debt by the year end, and how the cost of debt could evolve in the next year, in 2023?
Pepe?
Yeah, well, we are expecting to end the year with net debt of around EUR 45 billion-EUR 46 billion net debt. In terms of the cost of debt, we'll give you more information on the Capital Markets Day. But obviously, most of our debt is fixed except the Brazilian real, and it will depend a little bit on the evolution of the Brazilian real. In 2023, we are expecting that the Central Bank of Brazil will start cutting rates a little bit. In that sense, you know, we will see, but perhaps we would see a positive evolution on the debt.
As I was telling, we'll give you more information on the Capital Markets Day.
Next question. Would it be possible to get an update on the evolution of bad debts in the different markets you are exposed to, percentage and total amount, if possible?
Pepe.
Well, we have increased the provisions, you know, on the bad debt because obviously the amounts are a little bit higher. In terms of percentage over sales, we are maintaining those quite stable. That is good news. We are maintaining a percentage of bad debts over sales, you know, in line with last year, no?
Next question. What can we expect for financial results considering higher cost of debt in Brazil, U.S. and FX impact in debt?
Pepe.
We are expecting to see, in terms of growth, a reduction in the percentage of growth, taking into account that in this first half, we have counted some negative impacts of one-offs that will not happen in the second half. I would say that the growth of our financial expenses for the whole year will be around 25%, something like that, coming down from the current level that we have, which is 40% growth.
Next is, can you help us to quantify the negative impact of regulatory orders and court rulings?
Pepe.
The negative impact of regulatory orders?
Between inverted column, negative impact of regulatory orders and court rulings.
25, this one. How much we have already introduced in our accounts of these provisions?
Are the court rulings in Spain, you mean? In Spain?
Yeah. The wording of the question doesn't appear that, but.
Oh, okay.
it's related to this, yes.
Okay. Basically, this comes from a divergence in the valuation that we have on certain assets. There has been an order that has been given by the Spanish government on that, and we are appealing to the court as we think that we are correct in the valuation of these assets. We expect this to be accepted and won finally by the courts, but given, you know, our conservative policy and given the order passed by the government, we have decided to provision this. It has to do, as I was saying, regarding the valuation of some assets in our distribution business.
Next question is, what could be the impact of an Italian type of tax applied in Spain based on your 2022 and 2023 results expectations? How could it be split among utilities and other energy companies?
Well, when this, it will be public, we will provide more information. I think I would like to remember that 75% of total energy, they are talking about energy. In energy, 75% of the energy consumed is oil and gas, and only 25% electricity. Even more than half of this electricity is generated as well from fossil fuels. As you have already seen our results, we have no extra profit, as shown in the result I just presented to you. I think in the public information, oil and gas companies, that is not the case all over the world.
This question is related again about Spain. Could you let us know if results in Spain includes the change of accounting related to the new renewables regulation in Spain? If yes, what is the impact in H1, and how much you expect in the full year results?
I think it's, in my opinion, it has no impact, to my knowledge, that is not impacting results. I think it's just an advance in cash that in any case, we have the right to return later on. I think that is not an impact in our accounting result. It's an impact in the cash flow of the company only for the time being.
Next is related to the U.K.. Windfall taxes in UK with the green pool proposal for the market reform, opinion and expectations.
I think it's the U.K. government has already launched this process last week. I think we need more time to analyze in detail this reform. As soon as we have fully analyzed, we will be already able to give you some answer. I think, as much as I know, is that they launched this process already, and I think we will analyze.
Next question. Could you please tell us to what extent have you already been able to pass current electricity prices to your final customer in the different countries?
Armando?
Good morning. We have already sold to the final customers 100% of our own generation for 2022. We have already sold more than 80% in 2023, 60% in 2024, and more than 40% of 2025 of our own generation has already been sold to final customer.
Next question is, how would you qualify the degree of approval of environmental permits requests in Spain versus your expectations? Should we expect delays of capacity installation in 2022 and 2023?
Well, you know, I'm being called by the European authorities, Mr. Permits. Many years I've been already claiming because of the fact that the permit process is too slow, is too bureaucratic. It's not a question of one country, another one, it's general. The fact the European authorities is already publishing or plan to publish things, how to make some kind of directive, how to minimize the timing required for these, the delays. The fact I think we have had some, I think, several countries I mentioned are already, yes, trying implementing new regulation to avoid these present bottlenecks. But as far as I know, up to now, they are not very much detailed.
I was last week in Portugal in the inauguration of the giga battery of Tâmega with the Prime Minister. He told me that he's already preparing a special law for already the diminishing the bureaucracy for already the permitting. As far as I know, I not really seen that has already been published yet. In Spain as well, they've already announcing these sort of measures. In the case of Britain, same thing, in the case of European Commission as well.
Saying that, in our case, in the first quarter, we have already had a very small impact in our two facilities in United States, where one of the points where we have already more problem on that one, mainly for the supply of solar panels. Now, this supply of solar panels in the state has been removed, and we don't expect impact in the next few months on that one because it's already two years, which we will not already affected this tariff for the imports of this solar panel. It's something we have to be solved. It's still not solved, but they are already.
All countries know about the problem, and all countries trying to do their best for implementing measures which are always going to happen in the next future. I think I'm sure it is the only way for reducing our dependency on fossil fuels from third countries is to accelerate the construction of renewables. If there are still construction renewables, I think we have already a project ourselves and in other companies, and the bottleneck continue in that one. I think it's already a real drive in all countries to try to solve this one in the short term.
Next question is related to, on previous calls, Iberdrola commented on the impact of the cost inflation for renewables. Could you please provide an update up to now?
I think most of our operating result, as has been mentioned by the CFO, are protected against inflation. In revenues increase with inflation in different business. In networks, thanks to regulatory framework in most of our countries. In renewables, we have certain PPAs and of course the CFDs which are linked to inflation. Also in renewables, we are convinced if the inflation persist in the CapEx, as a consequence of that one increases, we will transfer to the prices to the final consumers. In any case, for our supplies in 2022, we have already almost secure with prices closed or hedged in advance.
You remember in 2020, 2021, we make already large purchase of equipment for already protecting our supply chains, and I think we are already benefiting still from the prices we fixed already in the past. Another consequence of the inflation is increases in interest rates. As Pepe mentioned, 75% of our debt is fixed rates. The only area where we have not that one is in Brazil, which inflation is also compensated in revenue. I think we are already naturally hedged in the country in that one. We are not already much affected in this moment for the inflation itself.
Next question is related to the PNM deal. Could you please provide an update on the status of the proposed acquisition and the expected timeframe?
I think, as I mentioned in the conference call, we remain optimistic. We have already an agreement with PNM until mid-2023. We are confident that we can execute the transaction by then. We have already filed an appeal to the Second Court of New Mexico against the decision of the New Mexico Public Regulator. Also, I mentioned in my speech, the process to renew the New Mexico Public Regulatory Commission has already started with appointment of the nominating committee, which nominates the new regulatory commission, which is going to be in place by January 2023, so I think, it's only four months, this Regulatory Commission remains in job.
I think most important all those thing is the transaction makes sense for us, for New Mexico citizens, for the investors. I think the fact 23 of the 24 parties already presented in the deal to the Regulatory Commission in New Mexico agreed with it. Even the attorney general in New Mexico has publicly supported the transaction. I think those are the fact, and that goes already, yes, for whatever reason, the actual Regulatory Commission was not already following the, w ell, 23 of the 24 parts were already supporting the transaction.
I think we hope the new regulatory commission, which is going to be appointed by January this year, will already analyze the thing in a different manner. The Supreme Court of New Mexico will take into consideration the number of people which are already present in this process to support the transaction. That's why I remain optimistic.
Next question is, when do you believe that the REPowerEU might lead to further upside to your investment plan in Europe? Can you broadly quantify, if any?
I think you heard from me the Fit for 55. I used to call Fit for self-sufficiency. It's the opportunity of Europe for becoming self-sufficient. At the same time, we will become already a net zero or diminish our emissions. REPowerEU is a very positive regulation because precisely intends to reach this self-sufficiency at the same time that we reach already the decarbonization target. As you know, we have already a very clear plan. Our strategy is not changed in the sense of continue investing in helping with the decarbonization, helping the countries to become self-sufficient. I think the same day, we will meet all of us in our Capital Markets Day in November. We'll hear more details about these things.
Many things are going to happen in Europe in the next few months, in all sense. We are seeing that almost every week there is already a meeting of energy ministers in Europe for different reasons. I think the fact Europe is already waking up about the need of becoming self-sufficient, and the only sources to become self-sufficient in Europe are renewables. For those countries who would like to build new nuclear or to remain with the existing one, it is the only one we have already at present. I think Europe is very aware about that.
The last question is the following: Given the rising focus on Europe and U.S., are you contemplating any divestment or disposal in emerging markets to fund investment in Europe or U.S.?
I think in terms of a new investment, I think you know, we are very clear. I think we continue with our process of PNM. I think that is in terms of new investment in corporate investment, PNM is the focus. In terms of asset rotation, I think we are already continue doing independently in the in Europe other countries. I think we are already rotating those assets we consider either are not strategic for us, either are already helpful to make the rotation to invest in another area. I think we continue with the rotation, and we continue already with partnership. I think in many areas, we have partnership not only in renewable, we have partnership in green hydrogen.
We have partnerships. We are going to announce a partnership as well for electricity charging stations for electric vehicles. We have already many of those things which are already helping our future growth without affecting much to our financial structure, to our balance sheet.
No, I just wanted, because I made, you know, an estimate of around EUR 45 billion-EUR 46 billion of that already . This was not including some asset rotation. In the end, and I was assuming a little bit of higher FX. In the end, you know, what we have in our revised view is somewhere around EUR 44 billion, okay? Just to make it clear.
Okay. Now, please, let me give the floor to Mr. Galán to conclude this event.
Okay. Thank you very much for taking part in this conference call. As always, I wanna thank you for your questions. Always very interesting question, very intelligent. As always, our investor relation team will be available for any additional information you may require. For those of you who take days off, let me wish you a very nice summer break. Thank you very much, and see you in November. Thank you.