Gas Natural Fenosa profit rise backed by LNG sales jump

Spanish LNG operator Gas Natural Fenosa reported a net profit of €320 million ($387.3 million) for the first quarter 2018, a 7.4 percent increase compared to the first quarter in 2017. 

Earnings before interest, taxes, depreciation and amortization (EBITDA) reached €1.05 billion, representing an increase of 2.7 percent compared to the first quarter of 2017.

This EBITDA increase is mainly due to a positive performance by its gas commercialization business and greater efficiency, Gas Natural Fenosa said in a statement.

The contribution by gas and electricity distribution to EBITDA stood at 57 percent, while the contribution by generation and commercialization stood at 43 percent.

The company said it continued to focus on generating cash flow by improving recurrent earnings and streamlining investment.

The commercialization of gas accounts for 35.8 percent of the consolidated total investments, thanks to the incorporation of an LNG tanker.

In the first quarter, wholesale gas supply reached 99.98 terawatt hours (TWh), an increase of 17 percent, mainly due to the contribution from international business (up 17 percent), which amounted to 61.94 TWh.

The EBITDA from wholesale and retail gas commercialization business amounted to €259 million, up 60 percent compared to the January-March 2017 period, mainly due to the increase in international LNG sales volumes within a context of higher gas prices due to the winter.

International wholesale supply of LNG during the quarter under review jumped 47.2 percent, reaching 40.97 TWh, compared to 27.84 TWh in the corresponding quarter in 2017.