Gas Natural Fenosa Takes Slight Hit in 1H Profit
Spanish gas and power supplier Gas Natural Fenosa (GNF) reported July 27 a net profit of €645mn in the first half of the year and pre-tax earnings (Ebitda) of €2.457bn, down 0.4%. It said this was in line with the forecast. It has reduced its debt but still owes €15.832bn.
Ebitda for the six-month period was affected by a very demanding environment for energy and macroeconomics, in which falling exchange rates – mostly in Latin America – had a negative impact of €114mn. Earnings in that part of the world would otherwise have risen.
Its gas distribution businesses contributed 33.8% of Ebitda, electricity distribution 27.1%, and electricity and gas supply 20.4% and 17.2% respectively.
In terms of geographic distribution, 55.7% of Ebitda came from operations in Spain (+2.2%) and 44.3% from international business (-15.1%).
Gross investments in the first six months amounted to €655mn, down by 7.5% and focused on the natural gas distribution business, which represented 41% of the consolidated total, compared with 40% from electricity distribution.
The company's gearing was 45.7% on 30 June, compared with 47.6% on the same date in 2015. Ebitda from gas distribution in Spain came to €424mn, down by 2.8% from the same period last year; and regulated gas sales there rose by 3.6%, to 94,396 GWh (some 8.8bn m3) thanks to growing demand over the last three months in the residential and industrial markets, especially the transport sector and mass consumption industry.
Ebitda on gas distribution in Italy was €29mn, 12.1% less than the same period in 2015, thanks to lower revenue from updating the weighted average cost of capital recognised by the Italian regulator. Sales in the domestic market (2,189 GWh) were 11.5% down on 2015 due to unfavourable weather.
Ebitda from the infrastructure business, which includes operation of the gas pipeline between the Maghreb and Europe, shipping management, integrated liquefied natural gas (LNG) projects and hydrocarbon exploration, development, production and storage, came to €146mn at the end of the first half year, up 2.1% owing largely to the 3% increase in the international transport tariff of the Maghreb–Europe gas pipeline.
At 30 June, gas transport activity in Morocco through the companies EMPL and Metragaz stood at a total volume of 52,299 GWh – 2.2% more than in the first half of 2015. Of this figure, 32,311 GWh (-5.5%) was transported for GNF through Sagane and 19,988 GWh (+17.7%) for Portugal and Morocco.
Ebitda on worldwide gas procurement and sales at the close of the first half year was €277mn, 39.1% less than the same period in 2015, owing to lower end-user prices.
In a scenario where demand is weaker due to climate change, GNF's marketing to end clients in the Spanish gas market was 72,836 GWh (some 6.8bn m3) in the first half of 2016, 7.1% less than in 2015.
International gas marketing reached 69,388 GWh (some 6.5bn m3), 6.7% more than in first half of 2015, with a notable boost in marketing to end-users in Europe. Sales in France in 1H2016 reached 22.9 TWh, and sales in Belgium, Luxembourg, Netherlands and Germany were 6.2 TWh. GNF sold 3.5 TWh in Italy and it is the second largest operator in Portugal where it has over 15% of the overall market and over 17% of the industrial market.