Naturgy closes Q1 2022 with lower renewables EBITDA

The renewables and new businesses division of Spanish power and gas utility Naturgy Energy Group SA (BME:NTGY) recorded a 24.6% decline in ordinary EBITDA in the first quarter of 2022, earning EUR 89 million (USD 92.6m)

Naturgy attributed the result to external factors and regulatory adjustments. It said it sold all of the output from its inframarginal power plants under long-term contracts below the price of EUR 67/MWh set by the Spanish government, but then had to buy electricity from the pool due to a low hydroelectric output. Prices in the electricity pool in Spain surged by 408% year-on-year in the first quarter, according to the utility.

The group as a whole was able to increase ordinary EBITDA by 4% to EUR 1.07 billion, with quarterly ordinary net profit rising by 9% year-on-year to EUR 354 million, despite uneven performance in markets in which it operates and fluctuating demand for power and gas.

On the renewables front, Naturgy put into operation 73 MW of new capacity in Spain and 181 MW in Australia since the end of last year’s first quarter. During this period, the company started building 238 MW of renewables in Spain, 276 MW in Australia and 68 MW in Chile, it said.

(EUR 1.0 = USD 1.040)

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