Acciona Energia cuts dividends, targets disposals to protect credit ratings

Acciona Energia, the Spanish renewable energy company, announced late Thursday that it would reduce dividends and investments to save its credit rating. It also hoped to generate around 2 billion euro ($2.36 billion), from asset sales, as well as reduce a portion of a debt.

Acciona Energia is owned by the Spanish company Acciona SA, with a stake greater than 90%. The strategic goal of Acciona Energia has been to strengthen its balance sheet and maintain investment grade ratings.

In recent years it has changed its course after years of significant investment, by reducing capital spending and selling renewables assets.

Acciona Energy?proposed to reduce the dividend by 93% for 2025, from 0.03 euros per share to 0.03 euro. It also said that asset sales of around 2 billion euros should be completed this year. Acciona Energia said that investments will be around 900 millions euros this year. This is down from the 1.4 billion euro investment in 'the last two years, and 2.2 billion euro in '2023.

It anticipated better?returns on renewable energy in the long term through a renegotiation?of?long-term contracts for energy supply, also known as power purchase agreement.

(source: Reuters)