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    Naturgy earns 347 million up to March, down 9.4%.


    May 13, 2022 - CE Noticias Financieras

     

      Naturgy obtained a net profit of 347 million euros in the first quarter of the year, which represents a 9.4% drop compared to the 383 million euros profit in the same period of the previous year, in spite of the high volatility scenario and the weakness in Spain, which was compensated by its international activities, the company informed.

      The group's gross operating profit ( Ebitda) stood at 1,074 million euros at the end of March, an increase of 9.4% compared to a year ago.

      The turnover of the energy company presided over by Francisco Reynés soared by 73.7% in the period from January to March, to 8,141 million euros. Ordinary net profit at the end of March amounted to 354 million euros, up 9%, while ordinary Ebitda was 1,072 million, up 4%.

      The results have been badly received by the investment community, which has punished Naturgy's shares with falls of more than 6% during the day on Thursday and a share price that has come close to 26.30 euros.

      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, reflecting macroeconomic scenarios, energy trends and diverse meteorology.

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

      Growth in international activity

      On the other hand, Naturgy highlighted that it has sold all of its infra-marginal 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 buy electricity from the pool due to low rainfall.

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

      Investment increased by 32%.

      Capital expenditures increased by 32% to EUR 259 million, with the construction of 582 megawatts (MW) of renewable generation having begun in the quarter.

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

      On the other hand, the group continues with its strategy of developing a renewable portfolio internationally, focusing on stable geographies and projects in the early stages 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 into commercial operation 73 MW in Spain and 181 MW in Australia. In addition, during the same period, construction began on 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.

      Projects to take advantage of gas networks

      Likewise, Naturgy assures to continue promoting its role in the energy transition with the 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 is working on a portfolio of projects to connect biomethane plants to its networks, which will inject around 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 indications to increase Europe's energy independence.

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