Naturgy increases its profit by 37% to September, up to 1,061 million

It aims for this financial year 2022 at an Ebitda of around 4,800 million euros

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Naturgy obtained a net profit of 1,061 million euros in the first nine months of the year, which represents an increase of 36.6% compared to the same period of the previous year, the company reported.

The gross operating result (Ebitda) of the energy company chaired by Francisco Reynés stood at 3,502 million euros as of September, with an increase of 36.8%, “in an environment of persistently high volatility in the international energy markets and in a time of heightened regulatory uncertainty,” the company said.

Compared to the same period in 2021, the growth of activities in Spain generated an increase in Ebitda of 407 million, while global activities contributed an additional 535 million.

Naturgy’s results up to September include the retroactive effects of the new purchase price agreement reached with Sonatrach last October -which retroactively affects the volumes supplied this year, while they will continue to negotiate the prices applicable from 2023-, as well as the estimated impact of the decoupling of final gas sale prices with respect to their current coverages indexed to TTF.

In this sense, the company has raised its supply figure to 22,284 million euros, compared to the 10,376 million euros it amounted to a year ago.

The amount of the group’s turnover, which is the main gas company in the country, shot up 85.5% between January and September, to 27,011 million euros, compared to 14,558 million euros in the same period in 2021.

RAISES INVESTMENTS BY 26% AND REAFFIRMS COMMITMENT TO ITS INVESTMENT PLAN

The company’s investments up to September grew by 26% compared to the same period last year, amounting to 1,119 million euros, with networks and renewables representing 80% of the total investments.

The energy company reiterated, despite the context, its commitment to invest 14,000 million euros in organic development within the framework of its 2021-2025 strategic plan. Since the publication of its ‘road map’, it has invested more than 2,600 million euros.

Reynés affirmed that Naturgy’s commitment to investments within the framework of its strategic plan “is solid and is supported by all the reference shareholders”.

“We want to be a relevant player in the evolution of the sector towards a realistic energy transition that is compatible with our environment. Despite the volatility and uncertainties, Naturgy maintains its commitment to being close to all its stakeholders, from citizens to shareholders , working for solutions and actions that have added value in this troubled context”, he added.

SECOND INTERIM DIVIDEND OF 0.40 EUROS

On the other hand, the board of directors has approved the second interim dividend for 2022 of 0.40 euros per share payable in cash on November 18, as provided for in the strategic plan. This dividend is equal to the one paid the previous year.

Regarding its net debt, it was reduced to 10,252 million euros as of September 30. However, this figure does not reflect the relevant cash outflows expected in the last quarter, including the retroactive payment to Sonatrach, the redemption of the hybrid bond and the second interim dividend of 2022.

Based on the current market environment and its prospects, Naturgy estimates a reported Ebitda of around 4,800 million euros for the entire 2022 financial year, not including new tax figures that must be registered in the current year, and a net debt position at the end of the year similar to that of 2021.

BOOSTING YOUR RENEWABLE PORTFOLIO

As regards the development of its renewable portfolio, the company already has more than 5.4 gigawatts (GW) of operating power from renewables, of which close to 1 GW has come into operation as of September.

In Spain, the company is immersed in the construction of around thirty wind farms and photovoltaic plants, which will represent the addition of close to 1 GW of new power to the Spanish renewable park over the coming months.

In Australia, a priority country for the group, it aspires to reach an installed capacity of 2.2 GW in 2025, with an investment of close to 2,000 million euros focused on the development of wind and photovoltaic technology plants and storage systems.

In addition, it is working on biomethane and hydrogen projects worth 4,000 million euros in anticipation of reaching 10% biomethane, in line with the latest community indications to increase Europe’s energy independence. Thus, today it has a portfolio of projects to connect biomethane plants to its distribution networks that would mean the injection of close to 6 terawatt hours (TWh) per year.

As regards the natural gas distribution activity in Spain, which it carries out through its subsidiary Nedgia, it has more than 5.4 million supply points that represent 70% of consumers.

For its part, in terms of electricity, through UFD, its electricity distributor, it provides service to almost 3.8 million supply points, through a network of 114,000 kilometers of high, medium, and low voltage.