Barcelona (EFE)
The company has released this Monday both the accounts from January to June, as well as more details of the update of its strategic plan until 2025.
The multinational justifies the substantial increase in its profits until June compared to the first part of 2022 due to the “good performance of international liberalized activities, in particular, energy management and marketing activities, and the positive evolution of the financial result, which reflects the strong deleveraging achieved in the period.”
Likewise, Naturgy’s result from January to June 2022 was partly conditioned by a provision for a ruling contrary to its Chilean investee Metrogas.
On July 12, the multinational advanced that the review of its strategic plan until 2025 provides for an improvement in the dividend.
Specifically, Naturgy said that in the 2023-2025 period it would distribute at least 1.40 euros per share in each of those years and also advanced its intention to place Ebitda or gross operating profit at 5,100 million in 2025, investments at 13,200 million and net debt at 16,000 million.
Regarding investments, they are slightly lower than those announced in July 2021 -then 14,000 million were promised- although 5,000 million higher in relation to the 2018-2022 plan.
In the 2023-2025 period, 61% of the investments will be allocated to the development of renewables and 28% to the network business, details Naturgy.
Dividend of 0.50 euros per share on August 7
In addition to setting its profit target for 2025, those 1,800 million euros mentioned, the company also announced this Monday that it will pay an interim dividend of 0.50 euros per share on August 7 on 2023 results.
The multinational already explained on July 12 that the increase in the dividend -this minimum distribution of 1.40 euros per share during the period 2023-2025- was “subject to the maintenance of a BBB credit rating” by the S&P agency and confirmed that 85% of the company’s profits would be used to remunerate shareholders.
Regarding the results until June, Naturgy assures that the first half of the year has been marked “by a reduction in energy prices with persistent volatility, as well as by regulatory uncertainty.”
From January to June, Naturgy added a gross operating profit or Ebitda of 2,849 million, 39% higher than in the same period of 2022, while it increased investments by 16%, to 839 million, and reduced the debt by 11% in relation to the end of 2022, to 10,752 million.
Liberalized businesses contribute 57% of ebitda
By activities, the liberalized businesses contributed 57% of the group’s operating profit, that is, a total of 1,677 million euros, mainly driven by international energy management activities, which caused the contribution to EBITDA of these businesses to skyrocket by 84.1%.
Regulated businesses, for their part, generated 43% of the multinational’s operating profit, that is, 1,261 million, which is 5.3% more than in the same period of 2022.
Network activity in Spain -generated 732 million, 8.6% less- was mainly affected by lower remuneration and demand, especially in gas, as a result of milder weather and lower industrial demand, while the network business in Latin America -529 million contribution to ebitda, 33.2% more- benefited from rate updates, among other factors.
Regarding renewable generation, it generated an ebitda of 235 million, 34% higher.
In this sense, of the 839 million invested up to June, 65% was allocated to renewables and Naturgy already adds a renewable capacity in operation of close to 5.7 GW, with an increase of almost 400 MW in the last six months globally.
In Spain, there are already some thirty wind farms and photovoltaic plants under construction, which will allow the incorporation of nearly 1 GW of installed power to the group’s portfolio throughout 2024.
On the other hand, Naturgy also ratified on July 12 the so-called Geminis project, which consists of the division of the company into two, and expressed its “total confidence” in its management team after the debate in recent days on the hypothetical recovery of the figure of CEO in the multinational.
In this way, Naturgy made it clear that it is continuing with this project, which seeks to divide the current multinational into two companies, both listed: one that concentrates the regulated businesses and the other the liberalized ones.
The project requires the endorsement of the Government, so it remains to be seen what position the new Spanish Executive that emerges from yesterday’s elections has.
Meanwhile, Naturgy has put aside the election of a new number two for the company after the resignation of Citi executive Ignacio Gutiérrez-Orrantia from exercising this responsibility.