By Giulia Petroni

EDP-Energias de Portugal SA said on Thursday that it plans to increase its recurring earnings and implement a new dividend policy as part of its business plan for the 2023-2026 period, which will be presented later in the day.

The Portuguese energy company targets recurring net income of around 1.4 billion euros and 1.5 billion euros ($1.49 billion-$1.60 billion) by 2026, with a 12%-to-14% compound annual growth rate between 2022-26. Recurring earnings before interest, taxes, depreciation and amortization are seen at around EUR5.7 billion by 2026, with a 6% CAGR in 2022-26.

In regards to its dividend policy, EDP said it targets a payout ratio of between 60%-70% and an increase in the dividend floor to EUR0.20 a share in 2026.

Gross investments are expected to amount to EUR25 billion between 2023-26, 85% of which will be directed toward renewables.

The company aims to increase its renewables deployment to around 4.5 gigawatts per year to around 18 GW until 2026, and reach an installed capacity of around 33 GW by 2026.

In order to simplify its corporate structure, EDP said it has filed a request regarding a tender offer for the delisting of its subsidiary EDP Brasil. The tender will potentially be funded by an intended capital increase of around EUR1 billion.

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

(END) Dow Jones Newswires

March 02, 2023 02:06 ET (07:06 GMT)

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