Naturgy emerges unscathed from the fall in gas prices and earns 1,045 million, 88% more
Not even a mild winter with a general drop in gas prices has succeeded in tarnishing Naturgy's results. The first Spanish gas company has closed a golden first semester in which it has managed to compensate for the cut in sales with higher margins, an equation that has resulted in an increase in profit to 1,045 million euros between January and June, 87.6% more than in the same period of the previous year, when the company earned 557 million.
The progress of the company's business has not been unrelated to the situation at the start of the year. After the historic rise in gas and electricity prices in 2022, fueled by the Russian invasion of Ukraine, the first half of 2023 brought a reduction in energy prices that in Europe were affected by lower demand due to mild temperatures, which translated into full reserves. Average gas prices in the main markets showed significant corrections, with declines of up to 41.8% compared to the same period last year.
All these factors favored a drop in group sales to 12,054 million euros, 28% less than in the first six months of 2022 (16,737 million). In parallel, the gross operating profit (ebitda) improved significantly, more than 39%, standing at 2,849 million, according to the semi-annual results that Naturgy has transferred to the market on Monday.
Naturgy pursued three objectives in the first six months of the year: debt, dividend and investments. The company has reduced its net liabilities from the 12,070 million that it carried at the end of 2022 to 10,752 million as of June 30, 2023. In addition, the group made investments amounting to 839 million in the period. Within the framework of the recent review of its strategic plan, the gas company has revised its shareholder remuneration upwards and will pay a first interim dividend of 0.50 euros per share on August 7, 2023 results, 66% more than the one distributed in August of last year.
In Spain, Naturgy's Generation activity boosted the result, with higher margins in the thermal segment (which includes combined cycles) and a 34% increase in ebitda in the Renewable Generation area, up to 235 million in the period, a positive evolution that is explained by the increase in installed capacity and production in Spain, especially in the gas company's hydraulic power plants, which multiplied its production by 2.3 times. “This was partially offset by lower regulated revenues (new parameters for the 2023-25 semi-period) and lower sales prices,” the company has stated.
In its half-yearly report, Naturgy has highlighted the group's commitment to biomethane. The company currently operates 2 megawatts (MW) of capacity on this renewable gas, reaching a production of 117 megawatt hours (MWh) during the first half of 2023 and is advancing several additional projects in Spain. In addition, two hydrogen projects are underway, in Meirama (30MW) and La Robla (280MW), and “a portfolio of additional options is being evaluated.”