Naturgy Energy Group, a leading Spanish utility company, has recently announced some significant revisions to its targets for 2025 as part of its strategic plan review. These changes aim to enhance earnings and optimize the allocation of resources.
Increased Earnings Target
Naturgy has raised its estimated target for earnings before interest, taxes, depreciation, and amortization to €5.1 billion ($5.62 billion) from its previous goal of €4.8 billion. This upward adjustment demonstrates the company’s confidence in its future financial performance.
Reduced Annual Investments
As part of its revised plan, Naturgy aims to decrease its annual investments for the period up to 2025. The company now plans to allocate €13.2 billion for investments during this period, which is a reduction from its previous target of €14 billion. This adjustment reflects Naturgy’s commitment to optimizing capital allocation and ensuring sustainable growth.
Debt Reduction Objective
Naturgy is also focusing on reducing its debt burden by implementing a new target of €16 billion by 2025. This represents a decrease from its previous goal of €16.9 billion and underscores the company’s commitment to improving its financial position and stability.
Revised Annual Dividend Floor
To provide shareholders with a competitive return, Naturgy has revised its annual dividend floor for the period leading up to 2025. The new floor is set at €1.40 per share, which the company believes will yield approximately 5.4% at current share prices. This adjustment aims to compensate shareholders for any potential interest rate increases and the effects of inflation.
Naturgy Energy Group will announce further details about these revised targets later this month along with its first-half results. These adjustments highlight the company’s dedication to long-term value creation and its strategic focus on financial excellence.
Remember, for more information and updates, stay tuned for Naturgy’s upcoming announcements.