Naturgy swings to 9-mo profit in 2019

Spanish power and gas utility Naturgy Energy Group SA (BME:NTGY) posted an attributable net profit of EUR 901 million (USD 1.01bn) for the first nine months of 2019, a reversal from a more than EUR-3-billion loss in the same period last year.

Excluding non-ordinary items, net profit grew 13% year-on-year to EUR 991 million between January and September of this year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached EUR 3.29 billion, up 10.6% year-on-year, while ordinary EBITDA rose 4.6% to almost EUR 3.4 billion.

Naturgy said Wednesday the improved results were accomplished despite the lack of growth in the regulated business and a slowdown in the liberalised business in a more adverse energy scenario compared to the previous year.

Naturgy’s gas and power EBITDA recorded a slight increase to EUR 940 million. In ordinary terms, the unit’s EBITDA dropped by 3.9% to EUR 964 million.

The company invested close to EUR 400 million in renewable energy projects across several markets. Naturgy highlighted investments in a 180-MW wind project in Australia and 324 MW of solar and wind projects in Chile, all due to come online in 2020-2021.

In Spain, Naturgy commissioned 290 MW of wind and solar farms between January and September.

Naturgy said it reduced its net debt by EUR 176 million in the nine-month period despite undertaking significant investment and shareholder dividend commitments.

(EUR 1.0 = USD 1.117)

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