Spain’s Gas Natural Fenosa plans to invest $14.8b in the next four years, mainly in distribution networks and power generation capacity. Most of the investment will go to Latin America, where the gas company aims to consolidate its presence, and Spain; but it also plans to jump to emerging markets such as India and Indonesia, Reuters reported.
In addition, Gas Natural Fenosa will bet heavily on the regulated gas business and the production of renewable electricity to grow its net profit by 6% to 8% to 2020 and ensure a 70% payout over the cited period of time. The Barcelona-based gas and power firm detailed that it will increase its renewables generation capacity by 2,500MW.
During the presentation of its investment plan, the company, which obtains around half of its core profits from Spain and the other half from Latin America, said it was focused on organic growth and the money earmarked for investments would not be used for any major acquisition, Spanish newspaper El País reported.