Gas Natural Fenosa Balancing Act

Spain’s Gas Natural Fenosa reported a year-on-year 0.3% net profit’s growth to 1.445 billion euros. The Madrid-based utility also achieved a consolidated EBITDA of 5.085 billion euros on good results of its international activities, despite a 12.7% fall in the EBITDA for its electricity business in Spain. 

‘EBITDA on electricity distribution activity in Spain was €588 million, down 4.1% on 2013. This fall in profit is the result of the negative impact of Royal-Decree Act 13/2012, which cut regulated income associated with distribution activity and commercial management of access, and Royal-Decree Act 9/2013, approved by the Council of Ministers in July 2013, which affects the electricity distribution business and revenue from transportation for the second period of the year, reads a note released on Tuesday.

In 2013, the company registered a 17.3% gas sales’ growth to 863 millions, due to international activities. International activities represented 44.1% of total EBITDA.

‘Gas Natural Fenosa continues to normalise its debt level, which stood at 49.4%, and its net financial debt fell by 8.5% compared to the previous financial year,’ explains the communiqué. 

Parent company Repsol is disinvesting in Europe. It asked  Citigroup and Deutsche Bank to study options to sell its stake in Gas Natural Fenosa.