Spanish Producer Records Small Increase in Profitability

Gas Natural Fenosa of Spain said its profit for the first nine months of 2012 was €1.115 billion, 0.1% more than for the same period last year.

This was despite lower earnings than in 2011 from the sale of assets.

Net profit grew by 22.8% adjusting for capital gains and losses on the disinvestments made in the same period of 2012 and 2011, the company reported.

This growth is based on the positive evolution of EBITDA in a tough macroeconomic climate and on the financial discipline reflected in the gradual normalisation of the indebtedness ratio and reductions in financial expenses.

Consolidated EBITDA was €3.827 billion up to the end of Q3 2012, 8.1% higher than the same period last year. This was despite a harsh macroeconomic, energy and financial climate, and thanks to a good balance between the regulated and liberalised gas and electricity markets, and the growing and diversified contribution of the international presence.

All of this enabled it to compensate for the stagnation of the contribution of Spanish business, affected by disinvestments made in 2011.