- Spanish power utility Endesa cut its profit and dividend outlook as it pledged to invest 8.9 billion euros ($9.71 billion) through 2026.
- Investments in renewables remain stable at 4.3 billion euros.
Spanish power utility Endesa cut its profit and dividend outlook today as it pledged to invest 8.9 billion euros ($9.71 billion) through 2026 with a growing focus on grids. The new guidance considers the impact of a court order to pay $570 million following an arbitration hearing over a long-term liquefied natural gas (LNG) supply contract with Qatar.
The Spanish firm is now aiming for an adjusted profit, which strips out one-off items and is used to calculate a dividend of 1.1 billion euros this year and 1.6 billion to 1.7 billion euros in 2024, below its previous guidance. Endesa earmarked a total of 2.8 billion euros for this business. Investments in renewables remain stable at 4.3 billion euros.
The company released its strategic update a day after its parent, Enel, presented its plan, under which it will focus its investments on power grids while being more cautious about renewable energy projects. Some of Europe’s energy giants have taken a similar stance on renewables, as the sector faces high-interest rates and rising debt costs. Endesa also said it expects roughly 3 billion euros from partnerships and asset sales, which should help cut net debt by as much as 20% in the next three years.