Naturgy recorded some losses of 347 million euros in 2020, compared to the earnings of 1,401 million euros the previous year, after pointing out deterioration of 1,363 million euros due to a new review in the valuation of assets, mainly of conventional generation in Spain, reported the company.
Specifically, the energy company indicated that, in order to provide a “more transparent valuation of its assets and adjusted to the current energy scenario”, it has carried out this review of the current energy sector during the last quarter of last year. valuation of these assets that has resulted in this impact.
From this review of assets, a total of 1,145 million euros correspond mainly to conventional generation in Spain and 198 million euros to gas activities in Argentina. Thus, it has had an impact on the group’s net profit in the year of 1,019 million euros.
In 2018, with the arrival of Francisco Reynés At the presidency of the group and the launch of its current strategic plan, Naturgy has already carried out a review of its assets that led to an impairment of almost 4,900 million euros due to the depreciation carried out on its assets, especially those of generation in Spain.
The gross operating profit (Ebitda) of the group chaired by Francisco Reynà © sa at the end of last year stood at 3,449 million euros, 18.9% less than the 4,252 million euros a year ago.
Excluding non-recurring items, the ordinary net profit of energy amounted to 872 million euros in 2020, 36.7% less, while its ordinary Ebitda reached 3,714 million euros, 14.6% less.
At a constant perimeter, the ordinary Ebitda would stand at 3,964 million euros, with which the group indicated that it meets the forecasts for 2020, which it had already revised down last summer due to the impact of the coronavirus crisis , of around 4,000 million.
The energy company has proceeded to reformulate these results according to its new organizational structure (Management of Energy and Networks; Renewables, New Businesses and Innovation; and Marketing) and collecting the sale of the stake of the Chilean CGE, agreed last month of November with the Chinese State Grid for an amount of 2,570 million euros and with which it expects capital gains of 400 million euros and a reduction in debt of about 4,000 million, which has been classified as discontinued operations in the consolidated accounts of both 2019 as 2020 for comparable purposes.
ONE OF THE “MOST COMPLICATED” EXERCISES
The company highlighted that it closes one of the “most complicated” exercises due to the strong impact derived from Covid-19, which has mainly caused a general drop in demand in all geographies and a significant depreciation in key countries of the Americas Latina, while the complex LNG scenario has become “more challenging”.
In this sense, Reynà © s underlined “the adaptability that Naturgy has shown in this difficult context and how the company has stood out on the international energy scene compared to other competitors, thanks to its growth in technologies clean and its commitment to new businesses, such as renewable gas, promoting digitization and innovation in all areas of the group “.
24% CUT IN INVESTMENTS
The group’s total investment in 2020 amounted to 1,279 million euros, a cut of 24.1% compared to the previous year, mainly due to lower growth investments in the gas networks in Spain as a result the months of confinement and the temporary slowdown of renewable developments in the country.
For its part, Naturgy’s net debt amounted to 13,612 million euros at the end of 2020, although not yet reflecting the 2,570 million euros -before taxes- expected from the completion of the sale of CGE Chile, although it does include the deconsolidation of the net debt of the Chilean company amounting to 1,316 million euros.
Thus, the net debt / Ebitda ratio of the energy company stood at 3.9 times, compared to 3.6 times at the end of December 31, 2019.
PROJECTS FOR 13,000 MILLION FOR EUROPEAN FUNDS
On the other hand, Naturgy reported that it has identified investment opportunities for 13,000 million euros in the coming years related to different projects in Spain linked to European ‘Next Generation’ funds.
In 2020, Naturgy, along with the sale of the Chilean CGE, also closed an agreement with ENI and the Arab Republic of Egypt to resolve the disputes affecting Unión Fenosa Gas (UFG), which it hopes to complete during the first months of this year.
The firm affirmed that these operations have allowed the company to redouble its investment effort in renewables. Thus, in recent months, it has increased its project portfolio by about 9 gigawatts (GW), increasing its presence in Australia, where it will raise its installed capacity to 700 megawatts (MW) or landing in the United States with the purchase of a project portfolio of 8 GW in solar energy and 5 GW in storage.
In addition, the company was awarded a total of 235 MW (38 MW wind and 197 MW photovoltaic) in the renewable energy auction called by the Government of Spain.
TOTAL DIVIDEND OF 1.44 EUROS IN 2020
Regarding the remuneration to its shareholders, the group’s board of directors will propose to the General Shareholders’ Meeting the payment of a final dividend against 2020 of 0.63 euros per share to be paid during the first quarter of this year. ± or.
If the shareholders approve it, this payment will be added to the first two dividends on account of 2020; € 0.31 and € 0.50 per share, respectively; which will raise the total dividend to 1.44 euros per share, in line with its ‘roadmap’.
Regarding the offer announced by the Australian fund IFM to acquire almost 22.7% of the company’s share capital, Naturgy, which has already described the offer as “voluntary and unsolicited”, indicates that its advice will already be pronounced “When it deems it appropriate and, in any case, when it is legally required”.
Thus, it underlines that this document “refers exclusively to Naturgy’s results for the 2020 financial year” and that, therefore, “does not constitute, and should not be considered, an opinion or position of the company regarding the aforementioned offer” .
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