Naturgy Energy Group (NTGY) H1 2024 earnings summary

Executive summary

• Achieved record or resilient 1H24 results with EBITDA of €2,846m and net income of €1,043m, maintaining strong operational management and capital discipline despite lower energy prices.

• Focused on efficient procurement, opex reduction, and higher installed renewable capacity, with emissions-free installed capacity at 41% and emissions intensity down 10% year-over-year.

• Progressed in decarbonization and energy transition, with a new strategic plan (2025–2030) focused on growth, value creation, and responsible decarbonization.

• Maintained regulatory proactivity and forward-looking risk management, securing higher margins in hedged volumes.

• Free cash flow after minorities was €681m, mainly due to higher capex and lower working capital inflow.

Financial highlights

• EBITDA for 1H24 was €2,846m, nearly flat year-over-year; net income reached €1,043m.

• Free cash flow stood at €681m after investments and hybrid redemption.

• Net debt reduced to €11,838m from €12.1bn at year-end 2023; net debt/EBITDA at 2.2x.

• Gross investment in 1H24 totaled €947m, with 44% allocated to renewables.

• Distributed €384m in dividends in April 2024; interim dividend of €0.5/share scheduled for August.

Outlook and guidance

• 2024 guidance: EBITDA floor of €5.3bn, net income floor of €1.8bn, gross investment ~€2.6bn, net debt ~€13bn by year-end.

• Positive outlook for 2024 with growth in electricity networks in Spain and LatAm, resilient supply margins, and favorable regulatory reviews.

• Dividend policy maintains a floor of €1.4/share for 2024, with scheduled payments in August, November 2024, and March 2025.

• All LNG volumes for 2024 sold or hedged; new price agreement with Sonatrach reached.

• New 2025–30 Strategic Plan in preparation, focusing on growth, value creation, and energy transition.