Naturgy Energy Group ((GASNY)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Naturgy Energy Group’s recent earnings call painted a picture of robust financial health and strategic growth, despite facing some challenges. The company showcased strong financial performance, increased dividends, and notable growth in its energy management and renewable sectors. However, it also acknowledged hurdles such as a decline in networks EBITDA, impacts from currency depreciation, and a drop in the supplies segment.
Strong Financial Performance
Naturgy reported an impressive EBITDA of nearly EUR 2.9 billion and a net income of EUR 1.1 billion for the first half of 2025. This performance underscores the company’s resilience and strength amid ongoing macroeconomic uncertainties.
Dividend Increase
In a move that exceeded market expectations, Naturgy announced a dividend of EUR 0.60 per share, culminating in a total payout of EUR 576 million. This decision reflects the company’s commitment to delivering value to its shareholders.
Energy Management Growth
The Energy Management sector saw a remarkable 36% increase in EBITDA, reaching EUR 524 million. This growth was primarily driven by higher margins on hedge sales, showcasing the sector’s robust performance.
Renewable Generation Expansion
Naturgy’s renewable generation segment received a boost with the completion of its second solar plant in Texas, boasting a capacity of 261 megawatts. This development contributed significantly to the company’s enhanced results in renewable energy.
Strong Cash Flow and Investment
The company reported a free cash flow after minorities of almost EUR 1.3 billion and invested over EUR 3 billion in the first half of 2025. These figures highlight Naturgy’s strong cash position and commitment to strategic investments.
Decline in Networks EBITDA
The Networks segment experienced an 8% decline in EBITDA compared to 2024, primarily due to an extraordinary impact in Chile the previous year. This decline was one of the notable challenges faced by the company.
Currency Depreciation Impact
Naturgy’s operations in Mexico and Brazil were adversely affected by currency depreciation, which impacted the overall performance in these regions.
Supplies Segment Decline
The Supplies segment saw a 15% decrease in EBITDA compared to 2024, attributed to an extraordinary impact from a positive ruling in the previous year.
Forward-Looking Guidance
Looking ahead, Naturgy provided optimistic guidance for the second half of 2025, anticipating an EBITDA of over EUR 5.3 billion and a net income exceeding EUR 2 billion for the year. The company remains committed to shareholder returns, with a projected dividend range of EUR 1.7 to EUR 1.9 per share. Naturgy’s financial position is robust, supported by strong liquidity and a strategic focus on capital discipline.
In conclusion, Naturgy’s earnings call highlighted a strong financial performance and strategic growth initiatives, despite facing some operational challenges. The company’s commitment to shareholder value, coupled with its optimistic guidance, positions it well for continued success in the energy sector.