Spanish natural gas utilities company, Gas Natural Fenosa, announced a net profit of €1.347 billion in 2016, 10.3 percent lower than the figure in 2015, the company announced Wednesday.
According to the company's press release, the result is in line with the 2016-2020 strategic vision which predicted a net profit of between €1.3 and €1.4 billion for 2016.
The company's EBITDA (earnings before interest, taxes, depreciation, and amortization) reached €4.970 billion, with a decrease of 5.6 percent when compared to 2015, the press release said.
EBITDA, an indicator of the overall profitability of a business, decreased because of the discontinued liquefied petroleum gas business in Chile, the press release said.
Spanish company proclaimed that its EBITDA was influenced by a very demanding macroeconomic and energetic climate, which directly affected the business’s contribution to gas marketing. Moreover, the depreciation of Latin American currencies against the euro had an impact on EBITDA worth €112 million.
During the financial year, EBITDA on activities in Spain remained stable, accounting for 55.5 percent of the total, the remaining 44.5 percent corresponded to international activities, according to the press release.
The company shared detailed information about its shares in EBITDA and said the gas distribution businesses contributed 34.8 percent, electricity distribution contributed 26.8 percent, electricity generation and marketing contributed 19.6 percent and gas supply and marketing contributed 17 percent. The rest of the activities accounted for the remaining 1.8 percent, and include the sale of four buildings in Madrid for a total of €206 million, with gains of €35 million.
According to the press release, Gas Natural Fenosa's net investments reached €2.225 billion in 2016, an increase of 56.5 percent when compared to the previous year.
"The increase was primarily due to the acquisition of two new LNG tankers in September and December of 2016, at a cost of €425 million. These LNG tankers will improve the competitive position of Gas Natural Fenosa in the LNG international market," the press release said.
Gas Natural Fenosa operates as a natural gas utilities company in the entire gas value chain, from exploration to distribution and marketing, including production, liquefaction and transport. It also has facilities for gas storage and regasification. The company is headquartered in Barcelona, Spain and operates through the following segments: gas distribution, electricity distribution, gas and electricity.
By Muhsin Baris Tiryakioglu