Naturgy Posts 58.6% Rise In 9-Mths to September Net Profit To €777 Mn, Due To Capital Gains

Gas Natural becomes NaturgyFrancisco Reynés, chairman of Naturgy

Naturgy has recorded net profit of 777 million euros in the nine months to September, up 58.6% from a year earlier. This was thanks to the 187 million euros clocked up from investments made in the electricity businesses in Chile and Unión Fenosa Gas (UFG) in Egypt. Net debt stood at 11.4 billion euros, 16% lower than at end-2020.

The company reported Ebitda of 2.56 billion euros, in line with the 2020 financial year but 17% below 2019, meaning it has not recovered pre-pandemic levels. Investments amounted to 900 million euros, mostly allocated to renewable generation activities.

Naturgy will pay a second dividend of 0.40 euros per share on the 15th charged against this year’s results. This payment is part of the commitment in the new Strategic Plan 2021-2025. For the full year 2021, a total dividend of 1.20 euros per share has been established.

“Our company has always been transparent and has always delivered for its shareholders. We have announced the payment of the second interim dividend as set out in our roadmap”, said chairman Francisco Reynés. At a time of high volatility of electricity prices in the pool, Naturgy has committed to offering its residential, commercial and industrial customers an energy price of 65 euros/MWh for three years.

With this measure, Naturgy will decouple its customers’ bills from the volatility of the pool price. “This initiative aims to reassure our customers, establishing an accessible and stable price, regardless of the volatility of the pool. We hope it will be well received by the industry, an essential sector for the recovery and economic development of our country”, added Reynés.
The energy company plans to invest around 14 billion euros between 2021 and 2025, most of which will be allocated to renewable energies. The company won 221 megawatts of photovoltaic power at the auction held on 19 October (an auction in which Iberdrola, Endesa and Acciona did not participate). Repsol, meanwhile, was awarded 138 MW of wind power.

On 14 October, the Comisión Nacional del Mercado de Valores (CNMV) officially announced the result of the partial takeover bid by the Australian fund IFM for 22.69% of Naturgy’s share capital. The bid closed with an acceptance of 10.83%.

According to Naturgy, the high volatility of international markets and the uncertainty associated with possible regulatory changes, prevent extrapolating the results of the third quarter to the rest of the year. In any event, the company expects to close the year with an ordinary Ebitda of 3.8-3.9 billion euros.

With regard to security of supply in Algeria, Naturgy points out that the capacity expansion of the Medgaz gas pipeline supply will be operational by end-year. This will allow it to continue to provide competitive gas to its customers. It also assures that the end of the Maghreb-Europe Gas Pipeline (GME) will not affect the security of supply to the country.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.