Naturgy reduces its benefits by 9.4% until March

The president of Naturgy, Francisco Reynés. / CR

The company earns 347 million euros

Naturgy obtained a net profit of 347 million euros in the first quarter of the year, which represents a drop of 9.4% compared to profits of 383 million euros in the same period of the previous year, despite the scenario of high volatility and weakness in Spain, which was offset by its international activities, according to the company. The company's shares have fallen by 6.7% on the stock market.

The gross operating result (Ebitda) of the group stood at the end of March at 1,074 million euros, with an increase of 9.4% compared to a year ago. The turnover of the energy company chaired by Francisco Reynés soared 73.7% in the period from January to March, to 8,141 million euros.

Naturgy's ordinary net profit at the end of March amounted to 354 million euros, an increase of 9%, while ordinary Ebitda was 1,072 million, 4% more.

The energy company highlighted that this first quarter of 2022 showed “uneven behavior” in the countries in which it operates and a variable evolution of demand, which reflects the macroeconomic scenarios, energy trends and diverse weather.

Thus, in general, the period was marked by the recovery of international activities, while the operation in Spain continued to experience pressure on sales margins, partly affected by contracts that do not reflect the global increase in gas and electricity prices .

On the other hand, Naturgy highlighted that it has sold all its inframarginal electricity generation capacity to end customers in the long term below the price set by the Government of 67 euros per megawatt hour (MWh) and that it has had to go to buy electricity at ' pool' due to low hydraulicity.

Regarding its network activity, it grew mainly driven by international activity, which registered rate updates in various geographies that reflect inflation and currency depreciation in previous periods. Networks in Spain remained stable despite regulatory impacts and lower demand in the latter part of the quarter.

Regarding its investments, they increased by 32%, to 259 million euros, having started the construction of 582 megawatts (MW) of renewable generation in the quarter.

The net debt of the energy group stood at the end of the first quarter at 13,062 million euros, in line with the end of the year 2021, after paying the dividend of 0.5 euros per share in the first quarter, and supported by the generation of box.

On the other hand, the group continues with its strategy of developing a renewable portfolio at an international level, focusing on stable geographies and projects in the initial phase of development, and with more than five gigawatts (GW) of installed renewable capacity.

Thus, between the end of the first quarter of last year and the end of the first quarter of 2022, it put 73 MW into commercial operation in Spain and 181 MW in Australia. Additionally, during the same period, the construction of six projects with a capacity of 238 MW in Spain and two projects with a capacity of 276 MW in Australia and 68 MW in Chile, respectively, has begun.

Likewise, Naturgy continues to promote its role in the energy transition with its commitment to the development of new energies that allow Spain to take advantage of the quality of the current gas supply networks.

In this sense, the company works with a portfolio of projects to connect biomethane plants to its networks that will involve the injection of nearly six terawatts (TWh) per year.

It is currently working on hydrogen and biomethane projects worth 4,000 million euros in anticipation of reaching 10% biomethane, in line with the latest community guidelines to increase Europe's energy independence.

New stable gas rate

Naturgy has launched a long-term natural gas tariff, called 'Industrial Gas Commitment', in which it offers industrial customers a "stable and competitive price" in the current energy scenario, a price of 55 euros per megawatt hour (MWh ), the company reported.

This energy rate is launched in a context marked by the escalation of raw material prices in international markets and seeks to "support the industrial sector, making it easier for it to stabilize its energy budget for three years and consolidate its competitiveness," he said.

Thus, the industry will be able to benefit from this fixed price of 55 euros/MWh until the end of 2025, below the current prices of the European gas markets.

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