Union Fenosa plans to double earnings to E4 per share by 2011, the energy company has revealed. To attain that goal, it has earmarked E9 billion for investment and plans to leverage its alliances to seize opportunities that may arise worldwide.

To realize its target, Union Fenosa has developed a strategic plan for 2007-2011, called BIGGER (Businesses, Investments, Growth x 2, Efficiency and Returns). Shareholder remuneration is one of the most ambitious goals of the BIGGER Plan, the company said in a statement. The target for EBITDA is E3.2 billion, compared with the E1.8 billion projected for 2006.

Funds from current and projected operations will total E5 billion during the period covered by the plan. Another E4 billion will be raised in the financial markets. The sum of those two figures means that Union Fenosa will have E9 billion for capital expenditure without having to resort to its shareholders.

Gas will continue to be an essential growth vector. The BIGGER Plan envisages obtaining an additional 2bcm of gas from new sources; accordingly, by 2011, Union Fenosa will have 8bcm to fuel its combined cycle plants, supply the domestic market and engage in international trading.

As for electricity, the business plan envisages moderate growth in capacity in Spain and adding 2,800MW in other countries, at an estimated cost of E3 billion.

The company also plans to strengthen its power generation mix by investing heavily in renewables. In fact, Union Fenosa Energias Renovables will invest between E700 and E900 million in growth in Spain and Portugal, with the goal of increasing ‘special regime’ output 2.8-fold. Union Fenosa will also invest between E800 and E1,200 million in doubling its installed capacity outside the Iberian Peninsula to 1,900MW.