Naturgy reports €1,045M profit up to June and dividend yield over 5%


Naturgy reported a net profit of €1,045 million in the first half of the year, an increase of 87.6% compared to the same period in 2022, mainly due to the “good performance of the internal business activities” and the good management of purchases in a competitive market. The energy company headed by Francisco Reynés increased its investments to €839 million, 16% more, and investments for the five-year period 2021-2025 will reach €13,200 million.

Indebtedness continues to fall, to €10,752 million, 11% less than at the end of 2022. EBITDA amounted to €2,849 million, an increase of 39%. On August 7, Naturgy will pay an interim dividend of €0.50 per share against 2023 earnings.

The rating agency S&P has upgraded the company’s outlook from negative to stable, and has confirmed its BBB credit rating. Despite the growth in net profit, Naturgy has been affected in the first half by a decline in demand for electricity in the countries in which it operates. In Spain, demand fell by an average of 6.9%.

The board has set the annual dividend floor for the years 2023-2025 at €1.40 per share, conditional on the company maintaining a credit rating of BBB by S&P. Based on current share prices, this represents a yield of more than 5% and offsets rising interest rate costs and inflation.

“This strategy of our forecasts responds to a strategy aligned with the energy transition and focusing mainly on organic growth which, together with an opportunistic management of asset rotation, will continue to contribute to our transformation”, said the chairman, Francisco Reynés.

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