Gas Natural Fenosa earns €1.45 billion in 2013, a 0.3% increase

Barcelona (ACN).- Barcelona-based Gas Natural Fenosa earned €1.445 billion in 2013, 0.3% more than in 2012. The strong international customer base of the energy company has neutralized the “decline in business” in Spain. This fall at Spanish level was due to the fiscal pressure increase and to the impact of the latest Spanish Government’s reform of the electricity market, which led to a shortfall of €455 million in 2013 for the Catalan multinational. The aggregate EBITDA (Earnings before interest, tax, depreciation and amortization) stood at €5.085 billion, 0.1% more than in 2012. International business accounted for 44.1% of the EBITDA, while it had represented 43.2% in 2012. In addition, the Spanish market contributed to 55.9% of Gas Natural Fenosa’s EBITDA, a 1.6% drop on last year figures.

In the statement sent to the Spanish Stock Exchange Regulation Authority (CNMV), Gas Natural Fenosa was very critical of the reform in the electricity sector designed by the Spanish Government. The Catalan company’s calculations indicate a shortfall of €600 million for the EBITDA figure for 2014, to be added to the €455 million already registered in 2013.

This new regulation has made the EBITDA of electricity business in Spain – which includes the wholesale and retail electricity market for customers who joined the Last Resort Rate – fall to €789 million, 12.7% less than in 2012. The company explained that such a decline was due to the impact of fiscal and legislative measures regarding production of electricity, which were approved in 2012 and 2013. 

The EBITDA of electricity distribution was set at €588 million in 2013, meaning a fall of 4.1% on the previous year. According to Gas Natural Fenosa, this decrease is due to the negative impact of the regulations approved by the Spanish Government in 2013, which affect electricity distribution.

The international market contributed to positive figures

In short, the aggregate EBITDA of Gas Natural Fenosa in 2013 stood at €5.085 billion, 0.1% more than in 2012. Such a figure “was reached despite demanding macroeconomic, energetic and legislation environments”. This negative context was neutralised by a growing and more diversified presence at international level.  

This international portfolio increased by 2.2% its contribution to the Earnings before interest, tax, depreciation and amortization, representing 44.1% of the EBITDA in 2013 whereas such a figure was set at 43.2% in 2012. This trend contrasts with the contribution of Spanish activity, which fell by 1.6%, dropping to 55.9%.

The volume of investments that were made in 2013 reached up to €1.49 billion, an increase of 10.1% compared to 2012. This growth in investments is basically due to an increase in investments abroad, which were up by 35%, with the highest growth registered on the Mexican market. On the other hand, investments in Spain have fallen by 4%. Despite this decline in investments on the Spanish market, Spain still consumes most of them, absorbing 55.7% of consolidated investments in 2013, a figure which had reached 63.9% in 2012.

Electricity distribution in South America, including Colombia and Panama, contributed to €340 million of the EBITDA, a 7.1% increase. The EBITDA for the distribution of electricity in Moldova totalled €35 million, a figure very similar to the one registered in 2012.

Brazil and Colombia the leading markets in South America for gas distribution

The EBITDA regarding gas distribution in Spain reached €917 million, amounting to a 1.9% increase. On the other hand, gas sales fell by 2.3%, especially due to decrease in sales of combined-cycle plants.

The EBITDA of gas distribution in the South American market reached €686 million, a 7.2% increase compared to 2012. The most important contribution was made by the Brazilian market, with €349 million, followed by Colombia, with €190 million, which are the two most mature market, representing 79% of the aggregate EBITDA in South-America. Turnover in the South American market reached €3.26 billion, a 9.3% increase. Gas distribution in Italy contributed to €92 million of the total EBITDA, 10.8% more than in 2012. Sales in the Italian market reached 3,786 GWh.

Payout set at 62%

Regarding its dividend retribution policy to shareholders, Gas Natural Fenosa says “it continues with a solid cash dividend policy” and this year expects to maintain a payout (part of the profits which is intended for the shareholder’s remuneration) of 62%, which represents approximately €898 million allocated in dividends, about 0.897 per share, and a 0.3 % increase on 2012.

A 49.4% liability ratio in 2013

Another important aspect of the evolution of the results for 2013 concerns liability behaviour. The net financial debt stood at €14.64 billion in 2013, representing a liability ratio of 49.4%. If tariff deficit, involving €485 million, is excluded from such figures, financial debt stood at €14.16 billion, a 48.5% debt ratio. Of this figure, 87.7% has a maturity reaching or going beyond 2016, which indicates that the average debt return period amounts to 5 years.