The following is a summary of the Naturgy Energy Group, S.A. (GASNF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Naturgy reported an 11% increase in EBITDA, surpassing consensus and past guidance figures.
The company's net income rose by 20% demonstrating improved financial strength.
Naturgy has maintained a stable level of debt, reinforcing its financial stability.
The company plans to propose a dividend of €0.40 per share at the AGM, taking the overall dividend figure for the year to €1.4 per share.
Naturgy reported an EBITDA of around €5.5 billion and a net profit of close to €2 billion.
The company generated solid cash flow leading to a robust balance sheet with a net debt to EBITDA ratio of approximately 2.2 times.
A decrease in gas and power prices during 2023 and improved working capital positively impacted the overall performance.
Business Progress:
Naturgy increased investment in energy transition, with a hefty €3 billion invested in the sector, a 50% from the previous year.
It increased its renewable capacity significantly across Spain and Australia and has been progressing in over 60 biomethane projects and around 10 hydrogen projects.
Naturgy displayed significant regulatory progress in Latin America.
The company set a record with the trial operations of the 7V Solar Ranch plant and made progress on the Grimes 269 megawatt solar plant in Texas.
Forward-focused, the company aims to concentrate on pipeline contracts, renewable generation, renewable gases, supply divisions, maintaining dividend policy, investing €3 billion in 2024, and preserving its BBB rating.
Naturgy does not anticipate M&A activities in 2024 but will consider opportunities while maintaining financial discipline.
The company also exhibited 'solid' performance concerning ESG metrics in 2023.
More details: NATURGY ENERGY GROUP S.A. IR
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