Spain's Naturgy expects higher core profit this year after resilient first half (updated)

Naturgy Energy

22/07/2026 10:04

Expects EBITDA of over €5.5 billion for the year 
First-half EBITDA rose 4.5% to €2.98 billion
Naturgy share price jumps 4.5% 
Updates shares in paragraph 2, adds analyst expectations and company comment on EU LNG ban and storage paragraphs 9, 11-12

    MADRID, July 22 (Reuters) - Spanish gas and power utility Naturgy NTGY.MC said on Wednesday it expects full-year core profit to climb at least 3%, after growth for its regulated distribution networks division helped offset pressure in parts of its energy markets business.

        Its shares were up 4.5% by 1034 GMT.
It now expects to book earnings before interest, taxes, depreciation and amortisation (EBITDA) of more than €5.5 billion ($6.3 billion) for the year, after EBITDA rose by 4.5% to €2.98 billion in the first half.
A 13.2% jump in EBITDA for the company's distribution networks division was helped by higher regulated remuneration in Spanish electricity distribution and tariff updates in Latin America.
"Distribution networks businesses once again demonstrated (their) role as a stable and resilient contributor to group earnings in 1H26, supported by regulatory stability, solid demand dynamics across geographies and disciplined cost management," Naturgy said.
However, core profit in its energy markets business fell by 2.4% to €1.49 billion, as weaker Spanish supply margins and negative mark-to-market effects on Australian power purchase agreements outweighed stronger thermal generation in Spain.
The outbreak of the U.S.-Israeli war with Iran at the end of February disrupted oil and gas flows through the Strait of Hormuz, leading to higher energy prices. They remain elevated as the conflict has widened in the Gulf and traffic through the strait has ground to a near standstill.

LONG-TERM SUPPLY FROM US
The company reported first-half net income of €1.22 billion — up 5.9% from a year earlier — and said it expects this year's net income to be above €2.1 billion, which was slightly above some analyst expectations.
It added that the EU ban on long-term LNG supply from Russia from 2027 will not result in a gas shortfall for Naturgy as it has sufficient long-term supply from the United States with flexibility on destinations to cover its committed sales.
Steven Fernández, global head of financial markets and corporate development at Naturgy, said the ban was designed in a market of abundance before the Iran war started.
"Now, we are facing a very different reality... there is low storage and an already tight LNG market. A cold winter, for example, as we have seen in recent years, could risk shortages by February 2027. Planning must be made now ahead of the winter," he said.
Naturgy also said it would pay a first 2026 interim dividend of €0.6 per share in cash on July 29, in line with last year's.
     
        ($1 = 0.8765 euros)

 (Reporting by David Latona and Nina Chestney in London; Editing by Thomas Derpinghaus, Edwina Gibbs and Emelia Sithole-Matarise)
 ((david.latona@thomsonreuters.com; +34 918 35 68 13;))