Spain: Gas Natural Fenosa Profit Grows

Gas Natural Fenosa’s net profit was 411 million euros, while its EBITDA grew by 2.2% to 1.329 billion thanks to its international business.

The EBITDA from the energy multinational’s international business grew by 8.1% and represented 44.1% of the consolidated total at the close of the first quarter of this year. In contrast, the EBITDA from activity in Spain fell by 2% to 55.9% over the same period.

• The results were helped by the international business and balanced business profile, which helped counter the stagnation in the Spanish business contribution and the impact, among other things, of Law 15/2012 on power generation in Spain.
• The EBITDA from the natural gas procurement and marketing business grew by 31.6% and reached 250 million euros, mainly due to the higher level of foreign operations.
• GAS NATURAL FENOSA continues to normalise its level of indebtedness, which reached 50.9%, mainly thanks to financial discipline and its solid position in the international markets, where in the first quarter it issued bonds twice.
• On 16 April the Annual General Meeting approved a shareholder dividend 8.7% higher than that for 2011. On the same day, the Board of Directors approved an offer to repurchase in cash Unión Fenosa preferential shares for 93% of their face value.

In the first three months of the year, GAS NATURAL FENOSA obtained a net profit of 411 million euros, 1% more than for the same period last year, supported by a well-balanced business profile, with a growing contribution from its international presence, reinforced by a strict financial policy.

The consolidated EBITDA for Q1 was 1.329 billion euros, 2.2% higher than the same period last year, despite a harsh macroeconomic, energy and financial climate, and thanks to a good balance between regulated and liberalised business in the gas and electricity markets, and the growing and diversified international presence.

All of this was able to compensate for the stagnation in the contribution of domestic market business and the impact of Law 15/2012 on the power generation business in Spain.

Growing contribution from international business

The international activity of GAS NATURAL FENOSA represented 44.1% of the consolidated total compared to 41.7% for the same period last year. The EBITDA on international business increased by 8.1% to 586 million euros during the first quarter. This growth was based on a significant increase in gas sales and the development of activity in Latin America. By contrast, the EBITDA generated by operations in Spain decreased by 2% and its relative weight in the consolidated total fell to 55.9%.

The net financial debt of GAS NATURAL FENOSA reached 15.944 billion euros, placing the level of indebtedness on 31 March at 50.9%. If we discount the tariff deficit pending recovery (889 million euros), the net debt is 15.055 billion euros, equivalent to a level of indebtedness of 49.4%.

71.7% of GAS NATURAL FENOSA’s net financial debt matures on or after 2016 and the average life of net debt is around 5 years.

The financial solidity of GAS NATURAL FENOSA was reflected in the successful placement of two bond issues. The first was in January, under the EMTN programme, and worth 600 million euros, with an annual coupon of 3.875%. The company’s second issue in Q1 was worth 250 million Swiss francs, with an annual coupon of 2.125% and expiry at 6 years. Both issues, in different currencies, confirmed the markets’ confidence in the multinational despite the restrictive context of the capital markets and very strict liquidity time limits.

GAS NATURAL FENOSA’s investments during the first three months of the year were worth 269 million euros, an 18.5% increase compared to the same period last year. Spain continues to be the main recipient with 57.7% of consolidated investments, although compared to the same period last year, these were down by 17.4%. In Latin America, the main investment focus continues to be on Mexico, Brazil and Colombia.

On 16 April, the Gas Natural Fenosa Annual General Meeting approved a shareholder dividend of 895 million euros, 8.7% higher than that distributed last year, with the payout of 62.1%.

Also, on the same date, the board of directors approved an offer to repurchase preferential shares in cash for 93% of their face value. These preferential shares were issued by Unión Fenosa for 609 million euros in 2003. With the acceptance of this offer and since their issue, holders will have received an average annual return of 3.74%. The offer is valid until 16 May.

[mappress]
LNG World News Staff, May 7, 2013; Image: Gas Natural Fenosa