MILAN -Italy's ERG will spend 2.9 billion euros ($3.2 billion) over the next five years as it looks to grow its footprint in Europe and boost earnings by almost doubling its green power capacity.
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In its new plan, Italy's biggest wind power operator said it was targeting some 10 markets across Europe and would generate half its core earnings abroad by 2026.
It will add 2.2 gigawatts of new capacity over the period to reach 4.6 GW, almost half of which will come from acquisitions for which it had allocated 1.4 billion euros ($1.5 billion).
The plan comes as Italy seeks to step up the roll out of renewable energy production to help cut its reliance on Russian gas.
"The current context of international crisis significantly increases the sense of urgency and our personal commitment to helping reduce dependence on gas," ERG Chief Executive Paolo Merli said.
ERG, controlled by the Garrone family, used to be one of Italy's leading oil refiners before shifting its focus to renewable energy.
It currently generates most of its output from wind but said on Tuesday a third of the new capacity will be solar, while other new business lines like energy storage, floating wind and green hydrogen will be developed.
It said it planned to have 85-90% of its earnings secured by using tenders and power purchase agreements. Core earnings will rise 40% to 560 million euros.
The Genoa-based group, which raised its dividend payout to 0.9 euros per share from 0.75 euros, also intends to reinvest money from asset sales to boost renewable growth.
It expects to wrap up the sale of gas-fired plant in southern Italy in the third quarter of this year to turn it into a pure renewables player.
"Definitely positive indications," Italian broker Equita said on the group's results and plan which "provides very strong 2022-2026 targets with improved dividend through the plan period."
At 1106 GMT ERG shares were up 1.5%, outperforming the Italian blue chip index which was down 0.8%.
($1 = 0.9098 euros)