With a greater emphasis on grids, Spanish power provider Endesa (ELE.MC) reduced its profit projection for this year and the next one on Thursday. The company also promised to invest 8.9 billion euros ($9.71 billion) until 2026.
The impact of a court decision to pay $570 million after a long-term LNG supply deal with Qatar was reviewed is considered in the updated advice.
The Spanish company is now targeting an adjusted profit of 1.1 billion euros this year and 1.6 billion to 1.7 billion euros in 2024—an amount that eliminates one-time expenses and is used to compute dividends. This is lower than anticipated.
It established a dividend floor of one euro per share to protect payouts for the year from this blow.
The investment plan represents a slight increase above the 8.6 billion euros promised to be invested between 2023 and 2025 in the previous plan. Roughly 200 million euros, or most of the increase, would go into grids since they typically yield predictable returns.
Endesa set aside 2.8 billion euros specifically for this venture. The amount invested in renewable energy is still 4.3 billion euros.
A day after its parent company, Enel <ENEI.< MI> unveiled its strategy, Endesa unveiled its strategic update, stating that it will prioritize power grid investments while exercising greater caution when funding renewable energy initiatives.
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