Spain's Gas Natural Fenosa Considers Assets Abroad

Spain's Gas Natural Fenosa intends to rebalance its portfolio, increasing its activities abroad to compensate for weakness at home in the wake of recession and recent overhaul of the Spanish energy sector.

“We are very unhappy about this reform,” Chief Executive Rafael Villaseca said in a conference call on Tuesday as reported by Reuters.

The Spanish utility is not ruling out the possibility of legal actions over the measures. 

Earlier this month, Rajoy’s government announced it would introduce measures to reduce the gap between regulated power prices and generation costs. The Spanish government will promote price rises (3.2% in electricity bills for consumers) and cost savings measures, such as a cut in the fees charged by companies distributing and transporting electricity. The government will also scrap subsidies to renewable power producers. 

On Tuesday, the company unveiled its results for the first half of 2013, reporting a 2.9% growth of its EBITDA to 2.634 billion ‘thanks to its international business.’

Earlier this year, Gas Natural Fenosa signed an agreement with Sonatrach of Algeria to buy 10% of Medgaz, a submarine natural gas pipeline between Algeria and Spain. 

Gas Natural Fenosa is to head the newly-created Spanish Association for Natural Gas for Mobility (GASNAM). The aim of the new association is to foster the use of natural gas in mobility, both on land and at sea. At least 10 industry players have joined.