Naturgy Energy Group (NTGY) H2 2024 earnings summary

Executive summary

• 2024 results remained resilient, matching or nearly matching record highs from 2023 despite a challenging energy price environment, with strong operational management and capital discipline.

• Exceeded FY24 guidance for EBITDA and net income, maintaining a robust balance sheet and liquidity.

• Advanced on decarbonization, efficiency, and commercial excellence under the 2021 Strategic Plan, surpassing key targets.

• Strategic Plan 2025-2027 focuses on capital discipline, operational excellence, integrated value chain, and selective investment in renewables and networks.

• Capex mainly directed to renewables and networks, with installed renewables capacity at 7.3 GW and 1.6 GW under construction.

Financial highlights

• FY24 EBITDA: €5,365m; Net income: €1,901m; Net debt: €12,201m; CapEx: €2,280m; liquidity at €11,237m.

• Free cash flow after minorities: €1,418m; cash flow covered CapEx, dividends, and taxes.

• 85% of investments directed to networks and renewables; 7.3 GW installed renewables capacity, 1.6 GW under construction.

• Net debt/EBITDA at 2.3x; FFO/net debt at 29%; average cost of debt stable at 4%.

• Net sales declined 14.8% to €19,267m, mainly due to lower energy prices versus FY23.

Outlook and guidance

• 2025-2027 plan targets average annual EBITDA of €5.3bn and net income of €1.9bn, with stability expected across the period.

• CapEx to increase, with €6.4bn planned for 2025-27, focused on renewables and networks.

• Dividend per share to grow 6% annually, reaching €1.9 as a floor by 2027, subject to BBB rating.

• No M&A included in the plan, but optionality remains for value-accretive opportunities.

• Commitment to maintain BBB rating, with FFO/net debt comfortably above 18%.