Iberdrola strengthens grids focus in $45 bln investment plan
MADRID, March 21 (Reuters) - Spanish renewable energy giant Iberdrola set out plans on Thursday to invest 41 billion euros ($44.83 billion) over the next three years, focusing on power grids like Italian rival Enel as the industry seeks better returns.
The new plan builds on the strategic shift Iberdrola announced in 2022, when it said it would be taking a more selective approach to renewable energy projects. Enel took a similar step late last year.
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Overall net investments for the company will stand at 36 billion euros, since around 5 billion euros will come from partners.
Europe's largest utility by market cap will pour 21.5 billion euros into its network business, or around 60% of net investments. Renewables will get some 15.5 billion euros, including 5 billion euros coming from partners.
Iberdrola expects net profit to grow to between 5.6 billion euros and 5.8 billion euros in 2026, while core earnings - before interest, tax, depreciation and amortisation - are seen at between 16.5 billion euros and 17 billion euros.
Shareholders will get 11 billion euros through 2026, as dividends will grow in line with net profit.
By the end of the plan, dividends should stand at between 0.61 euros and 0.66 euros per share, with a floor of 0.55 euros.
Iberdrola shares were up 1.2% early on Thursday, outperforming the blue chip index Ibex-35 .IBEX which was up 0.87%.
"Our strategy will focus on delivering enhanced grid to support security of supply, now 60% of our total investment, as well as a strong expansion of renewables capacity, driven by the substitution of fossil technologies and additional demand," Executive Chairman Ignacio Sanchez Galan said.
"We also recognise an increasing role of storage technologies."
($1 = 0.9145 euros)
(Reporting by Pietro LombardiEditing by Emma Pinedo and Elaine Hardcastle)