The Spanish energy group Naturgy has managed to maintain stable profits in the first half of the year despite a decline in gas prices.
This comes amid ongoing speculation about the company’s future following the failed takeover bid by the Emirati group Taqa.
Consistent Profit Levels
Formerly known as Gas Natural Fenosa before rebranding to Naturgy in 2018, the company reported a net profit of €1.04 billion between January and June. This matches the record figure from the first half of 2023, as revealed by the company on Tuesday.
Navigating a Challenging Energy Market
This performance was achieved in an environment “characterized by declining energy prices for both gas and electricity, indicating a more challenging energy scenario,” emphasized the company, which is Spain’s leading gas provider, in a press release.
Steady EBITDA and Reduced Debt
During the first six months of the year, the Spanish group recorded an EBITDA of €2.85 billion, the same as in the first half of 2023. Meanwhile, its debt slightly decreased to €11.84 billion.
Strategic Gas Supply Agreement
The Spanish giant, which co-manages the Medgaz pipeline with Sonatrach, linking Spain to Algerian gas fields, announced a new agreement with Sonatrach concerning the gas supply price from Algeria.
Strengthening Historical Ties
This agreement “demonstrates the strength of the historical relationship between the two parties” and will secure “the supply of gas to the Iberian Peninsula,” Naturgy noted, without disclosing the specific terms of the deal.
Positive Outlook for 2024
Thanks to this agreement and the first-half results, the group forecasts a profit exceeding €1.8 billion in 2024. Naturgy also commits to continuing its investments in renewable energy to “accelerate the decarbonization” of its operations.
Aftermath of the Failed Takeover Bid
These announcements come just over a month after the collapse of negotiations with the Emirati giant Taqa, which had sought to acquire more than 40% of Naturgy from investment funds CVC and GIP as part of a takeover bid.
Future Speculation
The failure of this bid has reignited rumors about the group’s future. According to the economic daily Expansion, the Australian pension fund IFM might be interested in a joint takeover of Naturgy with the investment fund Criteria Caixa.