Italy's A2A lifts 2024 profit outlook, dividend growth forecast through 2035
Adds CEO quote in paragraph 5, 10, details and background in paragraphs 6-9
By Alberto Chiumento
Nov 12 (Reuters) -Italy's A2A A2.MI again raised its 2024 core and net profit guidance on Tuesday after posting around a 70% rise in nine-month net profit to 713 million euros ($757.9 million).
The country's biggest regional utility also increased the planned annual growth rate of the dividend it will pay over its 2024-2035 industrial plan to at least 4% from 3%.
A2A now sees core profit this year of 2.28 billion-2.32 billion euros versus its previous guidance of 2.18 billion-2.22 billion euros. It sees net profit at 800 million to 820 million euros, above previous guidance of 700 million-720 million euros.
The stronger profit would allow the group to "support competitiveness" and speed up the development of strategic infrastructure for Italy's ecological transition, CEO Renato Mazzoncini said in a statement.
This is the second time A2A has upped its 2024 targets for both metrics, after it increased its forecasts in July.
Despite a 17% drop in nine-month revenue to 9.1 billion euros caused by lower energy prices, A2A increased its operating margin thanks to higher renewable energy production, a positive contribution from the energy retail sector, and an improved financial structure, it said.
The company updated the goals for its 2024-2035 industrial plan, confirming investments of 22 billion euros and saying it now sees its 2035 core profit at 3.3 billion euros versus above 3.2 billion euros when it first published the plan in March.
It also released targets for 2025 core profit in a range of 2.17 billion and 2.20 billion euros, and ordinary net profit of 680 million-700 million euros.
($1 = 0.9403 euros)
Reporting by Alberto Chiumento; Editing by Christopher Cushing and Jan Harvey
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