Naturgy spends on renewables after stable H1 (Update)
(Adds details of strategic plan)
Spanish retailer Naturgy is focusing on the energy transition with projects as far afield as the US, where it has just established a presence; and Australia, it said as it announced positive first-half financial results July 28. There was a 3% rise in Ebitda to €1.959bn ($2.3bn) and net profit was up 17% to €557mn), enabling a dividend of €0.30/share for the period.
It also set out its €14bn strategic investment plan to 2025, of which 60% will be dedicated to promoting renewable generation, rising from 4.6 GW in operation today to more than 14 GW by December 2025. The highest growth will be in Europe (another 5.2 GW), followed by Australia (another 2.2 GW).
On a lesser scale will be investment in gas and electricity distribution networks, mainly in Spain (€4bn). The remainder will be dedicated to maintaining existing assets. It also sets a target Ebitda of €4.8bn and net profit of €1.6bn by 2025.
More visibility has been given to dividend policy until 2025, with a floor set at €1.2/share/year. The company will review the evolution of the policy’s execution in 2023.
Furthermore, the company will continue working to review its supply contracts and explore alternatives that generate value for some of its activities, such as thermal generation in Spain and Latin America or the international LNG business, it said.
New energies will also play a part in the growth: Naturgy became the first company in Spain to inject renewable gas into the country’s gas distribution network. Naturgy estimates that it will be able to inject more than 1 TWh of renewable gas by 2025. Currently, 95% of the gas pipelines of Naturgy’s distribution company are already adapted to renewable gas and hydrogen.
Greenhouse gas emissions were reduced over the period by 9%, while net emission-free production grew by 13.5% and emission-free installed capacity increased by close to 7% owing to new projects in Chile and the closure of coal-fired power stations in Spain.