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Naturgy reported a steady rise in its quarterly performance, supported by higher power generation and expansion in its network business. While overall revenue declined, it remained above market expectations, and core earnings showed improvement. Increased gas prices, influenced by global supply disruptions, helped boost earnings without affecting procurement. The company also strengthened its renewable portfolio and continued investments in infrastructure. Alongside this, Naturgy announced a higher dividend payout for 2025. However, its shares saw a slight dip, and future regulatory changes around LNG imports from Russia remain an area to watch.
Spanish energy company Naturgy reported a 5% increase in its first-quarter profit, reaching 530 million euros (USD 620 million), supported by higher power generation and growth in its network operations. Advertisement
The rise in earnings came at a time when global energy prices moved upward due to disruptions caused by the ongoing Iran conflict. The situation impacted oil and liquefied natural gas flows through the Strait of Hormuz, with several energy facilities affected by strikes, leading to tighter supply and higher fuel prices.
The company stated that the increase in gas prices supported its core earnings, adding that it did not face any negative impact since its procurement contracts are not linked to the affected region.
Growth in Naturgy’s network business remained strong during the quarter. At the same time, its thermal power generation and installed renewable capacity in Spain increased compared to the same period last year. Higher output from wind and hydropower sources also contributed to overall performance.
During the quarter, Naturgy invested 339 million euros, primarily towards expanding distribution networks and renewable energy projects. Its total installed renewable capacity reached 8.1 gigawatts, with an additional 1.2 GW under construction, expected to be operational within the year.
The company’s global head of financial markets and corporate development, Stephen Fernandez, indicated during a results briefing that Naturgy is evaluating opportunities to acquire smaller firms, particularly in the renewable energy segment.
Despite a 6.9% drop in total revenue to 5.10 billion euros, the figure exceeded analysts’ expectations of 4.51 billion euros. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 6.5% to over 1.36 billion euros, largely in line with market estimates.
Naturgy also completed a dividend payout of 0.57 euros per share in cash at the end of March, taking the total dividend for 2025 to 1.77 euros per share. This reflects a 10.6% increase compared to the previous year.
However, the company’s shares were trading lower by 2.7%, at 26.92 euros during the day.
On the regulatory front, Naturgy continues to hold a long-term contract with Yamal LNG for importing liquefied natural gas from Russia. However, the European Union is expected to impose a ban on such imports starting 2027 as part of its sanctions framework.
Rita Ruiz de Alda, the company’s global head of financial controlling, energy planning and risk management, indicated that if these sanctions are confirmed, Naturgy may not be able to redirect these contracted volumes to other markets. She also noted that the European Commission is expected to review the sanctions package in July.
Source Reuters
5th Jun, 2025
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