Naturgy posts earnings beat on higher energy prices (updated)

Naturgy Energy

29/04/2026 08:11

Adds update on Yamal LNG in final three paras; updates share price

Naturgy's networks and renewables capacity grew

Revenue fell 6.9% but exceeded analyst forecasts; EBITDA rose 6.5% to 1.36 billion euros

Naturgy raised 2025 dividend by 10.6% but shares down 2.7%

MADRID, April 29 (Reuters) - Spanish power company Naturgy NTGY.MC on Wednesday reported a 5% rise in first-quarter profit to 530 million euros ($620 million) on higher power generation and network growth as energy prices were driven higher by the Iran war.

The conflict has restricted oil and liquefied natural gas flows through the Strait of Hormuz and energy facilities have been closed or damaged by strikes, driving fuel prices higher.

The surge in gas prices boosted Naturgy's core earnings without negative impact as it has no procurement contracts linked to the region, the company said.

Its network business grew and its thermal generation and installed renewables capacity increased in Spain compared to the first quarter of last year, in addition to higher wind and hydropower output.

Naturgy invested 339 million euros in the first quarter of this year, mostly in distribution networks and renewable projects. Total renewable installed capacity reached 8.1 gigawatts, with a further 1.2 GW currently under construction and expected to become operational during the year.

Stephen Fernandez, Naturgy's global head of financial markets and corporate development, said in a results briefing that the company was looking at acquiring smaller companies, specifically in the renewables sector.

Naturgy's overall revenue fell 6.9% to 5.10 billion euros, but was well above analysts' forecast of 4.51 billion. 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.

It paid its final dividend of 0.57 euros per share in cash on March 31, bringing the total dividend for 2025 to 1.77 euros per share - a 10.6% increase compared to 2024.

Shares were down 2.7% at 26.92 euros as of 1051 GMT.

Naturgy has a long-term contract with Yamal LNG to import liquefied natural gas from Russia, but such imports are expected to be banned by the EU from 2027 under a sanctions package.

"If these sanctions are confirmed, we would not be able to divert these volumes to other destinations," said Rita Ruiz de Alda, Naturgy's global head of financial controlling, energy planning and risk management, noting that the European Commission is expected to review its latest sanctions package in July.

($1 = 0.8548 euros)

(Reporting by Madrid Bureau, Javi West in Gdansk and Sergio Goncalves in Lisbon; writing by Nina Chestney; Editing by Andrei Khalip and Sonia Cheema, Kirsten Donovan)

((andrei.khalip@thomsonreuters.com; (351) 213-509-209;))