MADRID, April 24 Reuters Spanish utility Iberdrola on Wednesday raised its profit target for the year after a strong first quarter on the back of high renewable output in Spain and tariff increases in its network business in the U.S. and elsewhere.

It now expects high singledigit profit growth this year, from previous guidance for growth of between 5 and 7.

Firstquarter net profit rose to 2.76 billion euros 2.95 billion from 1.49 billion euros a year earlier, thanks to asset sales.

Europe39;s largest utility by market cap is reaping the benefits of its strategic shift towards upgrading and expanding grids in the United States and elsewhere while taking a more selective approach to renewable energy.

Last month it presented a 45 billion investment plan to build on this strategy, which it launched in 2022.

Like Italian competitor Enel, the Spanish firm is attracted by the stable and predictable returns offered by grids at a time when the renewable sector has been hit by high interest rates, rising debt costs and supply chain issues.

Excluding oneoffs such as a 1.2 billion euro gain in the quarter on the sale of some of Iberdrola39;s assets in Mexico, profit rose 28 and core earnings before interest, taxes, depreciation, and amortization 10.

Investment in the quarter reached a record 2.38 billion euros, of which 1.2 billion euros went to networks, mainly in the U.S. The company39;s network business benefited from improved tariffs in Britain, the U.S. and Brazil….