GNF makes profit despite regulatory impacts

Gas Natural Fenosa (GNF) announced a net profit for the first half of 2014 of €932 million, up 19.5%, due to strong results and despite the regulatory impact in Spain.

Consolidated EBITDA was €2421 million, down 3%, largely due to macroeconomic, energy and demanding regulatory environment and despite the significant expenditure restraint.

Currency depreciation

Regulatory measures RDL 9/2013, RDL 8/2014 and the international currency depreciation impacted GNF’s results. This was, however, partially offset by good performance in the company’s gas sector. The company added that the diversification of activities and financial strength would enable GNF to retain its objectives in updating its Strategic Plan 2013-2015.

Commenting on the results, GNF stated: “Despite the macroeconomic and regulatory environment, the energy company maintains [a] strong and diversified business model, supported by the increasing contribution of its international presence, financial strength and the quest for efficiency.”

GNF’s investments reached €666 million in the period, an increase of 15.4% compared to the same period in 2013. This growth was mainly due to the incorporation of an LNG carrier in March 2014, under finance leases amounting to €177 million.

Spain

• EBITDA of gas distribution in Spain reached €452 million, in line with last year’s results.
• Sales from regulated gas in Spain as a whole fell by 14.3% compared to the same period in 2013, caused by a drop in demand for gas subject to remuneration due to warmer weather in recent months, as well as by the fall in demand in some industrial sectors.

Italy

• EBITDA of gas distribution in Italy was €46 million, a decrease of 9.8% compared to the same period last year.
• Lower sales in the domestic market affected by high temperatures, had a considerable impact of Italian gas sales.

Gas infrastructure

• EBITDA of gas infrastructure, which includes the operation of the Maghreb-Europe pipeline, shipping management, development of integrated LNG and the exploration, development, production and storage of hydrocarbons, increased by 3.7% to €140 million.

New contracts

GNF consolidated its presence in major international LNG markets with a position in the medium term growth or market leading LNG countries. In line with this, the company signed a long-term sale and purchase agreement (SPA) for LNG with Chile, broadening its presence in the Pacific Rim.

The company also signed an SPA with Cheniere Energy subsidiary Corpus Christi Liquefaction. Under the agreement, GNF will purchase approximately 1.5 million tpa of LNG from the Corpus Christi facility in Louisiana, Texas, from the start of operations of Train 2 (expected in 2019). The SPA is for a period of 20 years, with the option to extend for a further 10 years.

Fuelling stations

GNF also continues to develop infrastructure for CNG and LNG fuelled vehicles. The company currently has 37 fuelling stations for natural gas vehicles, and is positioned as the current European leader in ownership of LNG stations.

The full H1 2014 results can be found on GNF’s website.

Adapted from report by Katie Woodward

Read the article online at: https://www.lngindustry.com/small-scale-lng/25072014/gnf-reports-on-first-half-2014-results-1071/