Naturgy’s profit jumps despite LNG sales drop

Spain’s Naturgy saw its net profit for the year 2019 jump 15 percent boosted by the growth in international activities.

The company reported a net income of €1.43 billion ($1.57 billion), which compares to €1.25 billion ($1.37 billion) net profit reported in 2018.

In Gas & Power, 2019 has been driven by a notable improvement in services sales, which experienced margin recovery in power supply, offsetting a challenging scenario in International LNG and Europe Power generation.

The company’s new commercial policies and de-risking efforts, together with efficiencies, also helped offset the low gas prices in the period, the company said in its report.

Gas sales declined by 9.4 percent during the year, mainly as a result of lower sales in the Spanish industrial and residential segments that dropped 14.5 percent and 10.2 percent respectively, as a result of increased competition and mild weather. Those were partially compensated by higher sales to CCGTs (+20.7 percent) and third parties (+0.4 percent).

Its international LNG sales declined to 124.28 TWh, 11.7 percent below the 140.67 TWh reported in 2018 because of the 49.9 percent reduction in short-term sales. Long-term sales continue jumped 37.4 percent supported by the commercial efforts intended to reduce margin volatility.

Net sales totaled €23.04 billion in 2019, 5.4 percent below 2018, mainly as a result of lower energy prices and volumes sold in the liberalized businesses that have not been offset by growth in the infrastructure businesses.