MADRID, Oct 23 (Reuters) - Spanish power company Iberdrola said on Thursday it may cut annual investments by up to 2 billion euros ($2.6 billion) due to a worsening economic climate, but any cuts would not affect 2010 earnings targets.

'The company is not isolated from the current economic environment and could alter its investment plan and re-examine its portfolio of assets to maximise value,' Iberdrola (other-otc: IBDRF.PK - news - people ) said in a presentation accompanying 9-month results.

Iberdrola's current target is for investments of 17.8 billion euros over its 2008-2010 strategic plan and it expects to make net profit of over 3.5 billion euros in 2010.

Chairman Ignacio Sanchez Galan said in a result presentation on Thursday: 'We have the flexibility to cut investments by up to 2 billion euros annually.'

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