Spain: Gas Natural Fenosa Profit Rises

Gas Natural Fenosa’s profit was 780 Million Euros, while its EBITDA  grew by 2.9 % to 2.634 Billion thanks to its international business.

• The EBITDA of international activity increased by 6.2%, to represent 43.4% of the consolidated total at the close of the first half year. The EBITDA of business in Spain remained at similar levels to the same period last year, despite the 1.9% decrease in EBITDA from electricity distribution.
• The company’s revenue was favoured by the increasing contribution of international business and its balanced business profile, which compensated for the levelling off of contributions from business in Spain and the increased tax pressure due to the impact of Law 15/2012 on power generation in Spain.
• The EBITDA of the gas supply and commercialisation business grew 22.6% to 445 million euros, mainly due to higher operation levels in the international market.
• GAS NATURAL FENOSA’s level of indebtedness stood at 50.2% on 30 June, thanks to financial discipline and its solid position in international capital markets.
• Tangible and intangible investments stood at 596 million euros, 11.4% more than the same period in 2012, despite the 11.3% drop in investments in Spain, which represented 52.9% of the total.

In the first six months of the year, GAS NATURAL FENOSA obtained a net profit of 780 million euros, 1.7% more than the same period the previous year. Thus, the levelling off of contributions from the domestic market and the increased tax pressure due to the impact of Law 15/2012 on power generation in Spain were offset by the good balance of the business profile, the growing contribution of the international presence, and a strict financial policy.

The consolidated EBITDA for the first six months was 2.634 billion euros, 2.9% 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.

Increasing contribution of international business

The international activity of GAS NATURAL FENOSA represented 43.4% of the consolidated total compared to 42.1% for the same period last year. The EBITDA on international business increased by 6.2% to 1.144 billion euros during the first six months. This growth resulted in a significant increase in gas sales and the development of activity in Latin America. In contrast, the EBITDA from operations in Spain remained at similar levels to the same period last year (+0.5%), reducing their relative weight in the consolidated total to 56.6%.

The net financial debt of GAS NATURAL FENOSA reached 15.136 billion euros, placing the level of indebtedness on 30 June at 50.2%. If we discount the tariff deficit pending recovery (915 million euros), the net debt is 14.221 billion euros, equivalent to a level of indebtedness of 48.7%.

80.7% of GAS NATURAL FENOSA’s net financial debt matures on or after 2016, and the average life of net debt is greater than 5 years.

The tangible and intangible investments of GAS NATURAL FENOSA were worth 596 million euros in the first six months of the year, with an increase of 11.4% from the same period the year before, due to heavier investment in the Latin America business. The main investment focus in the region continues to be on Mexico, Brazil and Colombia. Meanwhile, Spain continues to be the main recipient with 52.9% of consolidated investments, although compared to the same period last year, these were down by 11.3%.

On 16 April 2013, the board of directors approved an offer to repurchase preferential Unión Fenosa shares, with a 88.56% takeup. The aggregate nominal value applied to takeup was 539 million euros, in a single cash payment made on 20 May this year.

The Annual General Meeting also approved a shareholder dividend of 895 million euros, 8.7% higher than the dividends distributed the year before, situating the payout at 62.1%. Profits per dividend were over 6.6%, taking as reference market values at the close of 2012.