The energy crisis subsides, but the accounts of companies in the sector continue to receive significant tailwinds. Naturgy registered a gross operating result (Ebitda) of 2,849 million euros in the first quarter of 2023, 39% more than in the same period of 2022. Net profit was 1,045 million, almost 88% more. “International liberalized activities continued to benefit from the energy scenario of the last twelve months, while regulated activities experienced a slight increase,” explains the company in a note sent this Monday to the National Securities Market Commission (CNMV).
The activities of the former Gas Natural Fenosa in the free market recorded a gross result of 1,261 million euros (almost 60% of the total), proving once again to be the most profitable —although also the most volatile— in times of turbulence, with energy management and marketing leading the way. “These are solid numbers,” stressed Steven Fernández, Naturgy’s global head of Capital Markets, in presenting the results to analysts.
The networks business, for its part, recorded a gross operating profit of 1,261 million euros, 5% more than a year earlier, after being “affected mainly by lower remuneration and demand, especially in gas, as a result of the mild temperatures and lower industrial demand”. This brake was partly offset by the Latin American markets in which it operates, where “rate updates [que Naturgy percibe, como propietario de la infraestructura] they reflected the inflation of previous periods”.
After a clearly bearish stock market start, with the passing of the hours the titles of the energy company shook off their losses and managed to end the session slightly positively.
The net debt of Spain’s second largest energy company went from 12,070 to 10,752 million euros between the first half of 2022 and the first half of 2023, largely thanks to the good performance of its main business lines during the price crisis. And the ratio of net debt to Ebitda, one of the metrics that investors look at the most to assess the financial health of a company, fell from 2.4 to 1.9 times.
More cash on hand and improved profit forecast
Naturgy closed the first half of 2023 with 4,555 million euros of cash on hand, 14% more than in the same period of the previous year. Investments, for their part, increased by 16% between January and June —especially in renewables—, although the company chaired by Francisco Reynés has already announced that it will lift its foot on the accelerator in the near future to reinforce the dividend, a nod to the large funds present in its shareholding in full internal turbulence and after the failed appointment of a CEO.
As he announced last week, just after who was to be the company’s number two —Ignacio Gutiérrez-Orrantia— rejected the offer and management was forced to revive the segregation plan into two listed companies —one for regulated assets; another for those of the free market—, the former Gas Natural Fenosa has taken advantage of the presentation of results this Monday to update its strategic plan. If until now it was forecasting a net profit of 1,600 million euros a year in 2025, now it is 1,800. Consequently, the dividend will also grow, going from a minimum floor of 1.2 euros per share to another of 1.4 euros.
Around with Gemini
“Naturgy is in a good position to face the trilemma energetic [seguridad de suministro, precios competitivos y reducción de las emisiones de gases de efecto invernadero] and carry out the transition to renewables”, Reynés has settled at the analysts’ conference held this Monday. “It is a realistic scenario”, he added while reiterating – as on previous occasions – that the company “is not working on any inorganic purchase operation”, despite the cash available. Regarding the segregation project, named Geminis, the Balearic executive stressed that “it continues to make industrial sense” and that the recently published update of the strategic plan “confirms its viability”: “We continue working to achieve it: in fact, we already work as two companies [independientes]”.
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