The chief of Europe's largest utility, Iberdrola, said it will not begin any renewables projects in the United States this year, as part of a broader strategy shift unrelated to possible US tariffs that should not impact the company.
Executive Chairman Ignacio Galan said on Thursday the company has already secured agreements for its renewable projects under construction in the United States, which together with Britain is its main focus.
The agreements in place provide clarity on prices, while Iberdrola's reliance on local producers protects it from any import tariffs, he said.
"We expect virtually no impact from new tariffs in the US," he told analysts in a call to present Iberdrola's 2024 financial performance.
He also said: "We do not expect to start a new renewable project in the US in 2025."
The company on Thursday announced provisions of 1.6 billion euros ($1.68 billion) to adjust the value of its renewables pipeline, as it slows down renewables development in the United States.
It has already flagged a more selective approach to renewable energy, as part of a strategic shift towards building and upgrading grids, which can provide a healthy revenue stream.
In the US, power networks already account for 80 per cent of its operations.
"Demand in the United States continues growing more than ever, and investment in power grids is more needed than ever," Galan said.
Iberdrola has roughly 9.7 gigawatts of renewables capacity installed in the United States, primarily onshore wind projects. It is also developing some large offshore wind parks, an energy source US President Donald Trump has very publicly criticised.
The focus on grids has already yielded results, with Iberdrola performing better than it foresaw in its strategic planning up to 2026, Galan said.
Last year's profit beat analysts' expectations and also the company's initial 2025 outlook as earnings from Iberdrola's network business were boosted by higher tariffs in Britain, Brazil and the United States.
It expects a mid-to-high single-digit net profit growth this year, following last year's net profit of 5.61 billion euros, a 17 per cent increase on 2023 gains, bolstered by asset sales.
Iberdrola proposed a dividend of 0.635 euros per share against 2024 results, a 15 per cent increase.
(Reporting by Pietro Lombardi; Editing by David Latona and Barbara Lewis)