Gas Natural Fenosa makes a €780 million profit during the fist half of 2013 and increases its MedGaz ownership

Furthermore the Catalan multinational announced it was expanding its shares within the MedGaz pipeline to 14.9%, which is one of the five pipelines that transport Northern African gas to Europe. The natural gas company reported that its profit levels for the first half of this year have increased by 1.7% from 2012 to €780 million. The Catalan multinational company highlighted how this increase was the result of the international growth of the industry which counteracted the relative stagnation in the domestic market. Gas Natural Fenosa’s EBITDA was also up on last year and totalled €2.63 billion, representing an increase of 2.9% compared to the same period last year.

Gas Natural Fenosa's President, Salvador Gabarró, on the last General Meeting of Shareholders (by J. Molina)
Gas Natural Fenosa's President, Salvador Gabarró, on the last General Meeting of Shareholders (by J. Molina) / ACN

ACN

July 30, 2013 11:03 PM

Barcelona (ACN).- The Barcelona-based energy multinational Gas Natural Fenosa reported an increase in its half yearly profits of 1.7% to €780 million. These figures are achieved despite a downturn of the Spanish domestic market, which has decreased due to the economic crisis. However, the Catalan company compensated this decrease with a growth of its profit levels from foreign markets. In addition, Gas Natural Fenosa announced on Tuesday it was increasing its shares within the MedGaz pipeline from 10% to 14.9%, buying the additional 4.9% of the pipeline’s shares from Gaz de France Suez for €39 million. MedGaz is one of the five pipelines directly transporting Northern African gas to Europe and therefore has a strategic importance for the European Union’s gas supply. The Catalan multinational’s total EBITDA between January and June of 2013 reached €2.63 billion, representing an increase of 2.9% compared to the same period last year. With regards to tangible and intangible investments, the figure grew to €596 million during the first term (up by 11.4% on last year), which is also said to have risen due to increased spending in Latin America. These positive figures are particularly significant considering the increase in tax rates on electricity generation that have been raised through the Spanish Law 15/2012.


The Barcelona-based company increases its shares within the strategic MedGaz pipeline

The Catalan company, chaired by Salvador Gabarró, announced on Tuesday it had reached an agreement with the French group Gaz de France Suez to purchase 4.94% of MedGaz’s shares. Gas Natural Fenosa will pay €39 million for the shares, which means that the Barcelona-based multinational increases its ownership of MedGaz from 10% of to 14.94%. In early 2013, the Catalan multinational bought from the Algerian company Sonatrach 10% of MedGaz which is one of the five pipelines directly bringing Northern African gas to Europe. It connects the Algerian port of Beni Saf with the shores of Almeria and it has the capacity to transport 8 bcm of gas per year. Gas Natural Fenosa’s agreement with Sonatrach also came with a contract to supply 0.8 bcm per year of gas for an 18-year period. Now, the expansion of the Catalan company’s shares within MedGaz does not come with a gas supply contract.

Gas Natural increases its international business

Gas Natural Fenosa’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) from foreign markets increased by 6.2% to €1.14 billion thanks to a rise in the company’s activities in Latin America. However, the EBITDA from operations within Spain grew by only 0.5%. By the end of June, the activities within Spain represented 56.6% of the company’s total.

The company’s shares had a profitability of 6.6%

Furthermore, during the General Meeting of Shareholders it was decided to remunerate shareholders with a total of €895 million, an increase of 8.7% on last year. The profitability was above 6.6% according to the trading price at the end of 2012.

A total debt of 50.2%

The company’s debt levels as of 30th June, reached 50.2%, with a net financial debt amounting to €15.14 billion. However, the company is waiting to receive from the Spanish Government €915 million to compensate for an historical deficit while paying for the energy production costs. This would mean the company’s debt would be lowered to €14.22 billion, which represents a debt level of 48.7%.