The company compensated with the foreign business the lack of growth of the distribution in Spain, the slowdown of liberalized businesses and the effects of mild weather
Naturgy earned 592 million euros in the first half of the year, compared to the losses of 3,281 million recorded in the same period of 2018, derived from the depreciation of electricity generation assets carried out by the multinational last year.
In a communication to the National Securities Market Commission (CNMV) the multinational specifies that, in ordinary terms, Naturgy would have earned 692 million, 30% more than the first six months of 2018, as a result of the improvement in activity and of the lowest amortizations.
During the first semester of the year, Naturgy compensated with the foreign business the lack of growth of the distribution in Spain, the slowdown of liberalized businesses and the mild weather that occurred in the country during this period.
On the other hand, the group led by Francisco Reynés continues to focus on the simplification of the business and the organizational and management structure of the multinational and has announced that in 2019 it expects to achieve cost savings of 150 million, compared to 100 million estimated at the beginning.
In these first six months of the year, Naturgy had to face 110 million euros of “capture costs” derived from the implementation of the efficiency plan.
This meant that the gross operating profit or EBITDA amounted, in the first half, to 2,150 million euros, which represents 7.28% more than in 2018, although the multinational has qualified that, without these extraordinary effects, the result It would have been 2,277 million.
CNMC CUTOUT
The company insists that it is prioritizing in the short term the elaboration of the claims to the drafts of the gas and electricity distribution circulars that the National Commission of Markets and Competition (CNMC) recently presented.
However, the multinational has not offered on Wednesday an estimate of what could be the impact on its business of the cuts raised by the CNMC.
The multinational recalls in a statement that Nedgia , its gas distribution subsidiary, has among its shareholders two pension funds (Allianz Capital Partners and Canada Pension Plan Investment Board), and stresses that “it will try to ensure” that the new regulatory framework continues to recognize a “reasonable and predictable” level of long-term regulated remuneration, both in investments already made and in future ones.
INVESTMENT
In these first six months of the year, the former Gas Natural Fenosa has invested 699 million, mainly in renewable projects, compared to 1,145 million in the first half of 2018, although Naturgy qualifies that the latter amount included 380 million correspondings to two methanes.
The company, which recently announced that it temporarily paralyzed its investments in new gas networks, due to the proposed CNMC regulatory change, has remarked that in the last twelve months it has invested 2,000 million euros, 70% of them in renewable and electrical networks.
Naturgy had a turnover of 11,639 million in this first half, 4.4% less, due to lower energy prices and lower volumes sold in the liberalized business, although the infrastructure business continued with its good dynamics and compensated for the weakness of other activities.
By business, gas and electricity contributed 640 million to EBITDA, 7.6% more, and infrastructure in Europe generated 919 million, 3.1% more than in the first half of 2018.
The infrastructure business in Latin America South contributed 448 million, 23.8% more, while that same business in the area called North Latin America contributed 189 million, 53.7% more than in 2018.
In a statement, the multinational has highlighted that it has concluded the first anniversary of the 2018-2022 strategic plan fulfilling its commitments.
“During these first twelve months of the strategic plan we have been able to take action and react quickly and decisively to the uncertainties and changes that have taken place,” says Naturgy’s chief executive, Francisco Reynés.
