By Giulia Petroni 
 

Naturgy Energy Group SA on Wednesday unveiled its strategic plan for 2021-25, including a boost to renewables investments as part of its gradual shift toward cleaner forms of energy.

The Spanish utility company said it targets total capital expenditure of 14 billion euros ($16.5 billion) over the period. This includes EUR8.7 billion for renewables--largely to developing projects, grids and new businesses such as hydrogen--and EUR4.1 billion for gas and electricity distribution networks, mainly in Spain.

It also plans to increase its installed renewable capacity to reach 14 gigawatts by 2025 from 4.6 gigawatts in 2020.

Ordinary earnings before interest, taxes, depreciation and amortization are expected to amount to EUR4.8 billion in 2025 from EUR3.7 billion in 2020, with a compound annual growth rate of 5.1%.

Ordinary net income is targeted at EUR1.5 billion in 2025 from EUR900 million in 2020, according to the company.

Naturgy added that it targets a dividend of EUR1.20 a share per year, which represents an average payout of 85% for the period, with a capital allocation of around EUR20 billion over 2021-25. The dividend policy will be reassessed in 2023.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

July 28, 2021 09:24 ET (13:24 GMT)

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