Naturgy posts earnings beat on higher energy prices
First-Quarter Financial Performance Overview
Net Profit and Analyst Expectations
MADRID, April 29 (Reuters) - Spanish power company Naturgy reported on Wednesday a first-quarter net profit of 530 million euros ($620 million), about 5% higher than a year ago, beating the median forecast by analysts polled by LSEG of 525 million euros, on higher power generation and energy prices.
Revenue and EBITDA Results
Revenue Performance
Overall revenues reached 5.10 billion euros, down 6.9%, but well in excess of 4.51 billion forecast by analysts. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 6.5% to over 1.36 billion euros, largely in line with the market consensus of 1.35 billion.
Profit Forecast and Outlook
2024-2026 Guidance
Naturgy, which has previously predicted a slight decline in net profit this year to just below 2 billion euros from 2025's 2.02 billion, on Wednesday said that the strong start of the year made for improved visibility for 2026, but did not adjust its forecast.
Impact of Global Events on Earnings
Higher gas prices due to the war in the Middle East boosted Naturgy's core earnings without negative impacts as it has no procurement contracts linked to the region.
($1 = 0.8548 euros)
(Reporting by Madrid Bureau, Javi West in Gdansk, editing by Andrei Khalip)
