Acciona Energia Cuts Dividends and Targets Asset Sales
The Spanish firm proposed a 93% dividend cut and plans to raise 2 billion euros from asset sales. These moves aim to reduce debt and protect credit ratings.
Corporación Acciona Energías Renovables, S.A., a renewable energy leader based in Spain, has announced a comprehensive strategic shift aimed at protecting its investment-grade credit ratings. The company plans to significantly reduce dividends, curb capital expenditures, and execute approximately 2 billion euros in asset disposals throughout the current year. The firm, which is majority-owned by Acciona, S.A. with a stake exceeding 90%, has prioritized the strengthening of its balance sheet following a period of aggressive expansion. As part of this pivot, the board has proposed a 93% reduction in the dividend for 2025, bringing the payout down to 0.03 euros per share. To further reduce financial leverage, the company expects its net debt to fall below 3 billion euros, down from the current level of 4.16 billion euros. This deleveraging will be supported by a sharp reduction in annual investment, which is projected at 900 million euros this year—a substantial decrease from the 1.4 billion euros spent annually over the last two years and the 2.2 billion euros recorded in 2023. Looking toward long-term profitability, the energy producer anticipates improved returns from its renewable portfolio by renegotiating power purchase agreements. These long-term supply contracts are expected to provide more stable and lucrative revenue streams as the company transitions from a high-growth phase to a focus on operational efficiency and financial stability.
