Naturgy Energy Group SA

Gas Natural SDG is a gas company based in Spain. Co. and its subsidiaries are primarily engaged in the supply, transportation, distribution and commercialization of piped natural gas, as well as the activities involving exploration and developing, supply, regasification, liquefaction and storage of natural gas, and the generation and commercialization of electricity. Co. operates mainly in Spain and also outside of Spain, especially in Latin America, Puerto Rico, Italy, France and Africa (through Maghreb-Europe gas pipeline and integrated LNG projects in Algeria).
  • TickerGAS
  • ISINES0116870314
  • ExchangeMadrid Stock Exchange
  • SectorGas, Water & Multi-utilities
  • CountrySpain
ING
Nadège Tillier

European utilities/Power recovers while natural gas languishes

After reaching an abrupt decline in April and May, power prices are gradually recovering from their depressed levels. The end of the lockdowns in May and June as well as a warm summer across Europe has helped power consumption regain. However, consumption is not yet back to its former levels and neither are power prices. The impact on utilities' cash flows will be limited in 2020 for those that have had appropriate hedging strategies but the negative impact could be seen within the next two to three years. However, the good news is that both power consumption and prices are on a recovery path ...

Bruno Cavalier ...
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 07/27/2020

After years of unrealised €/$ bullish forecasts the single currency is finally on an upward trajectory. This change of course reflects a radical shift in the perception of the political risk associated with the European Union. The starting point for the rise (17 May) corresponds, moreover to the Franco-German announcement of the stimulus plan project. The European agreement of 21 July to begin the implementation process argues in favour, in a context of an upturn in PMIs, in favour of...

Louis Boujard, CFA ...
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF Small & MIDCAP MORNING NEWS - 27/07/2020

Après des années de prévisions haussières de l’€/$ non réalisées, l’euro connait enfin une trajectoire ascendante. Ce changement de cap reflète une évolution radicale de la perception du risque politique associé à l’Union européenne. Le point de départ de la hausse (17 mai) correspond d’ailleurs à l’annonce franco-allemande du projet de plan de relance. L’accord européen du 21 juillet pour engager son processus de mise en œuvre milite, dans un contexte de redressement des PMI, pour le...

Bruno Cavalier ...
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 27/07/2020

Après des années de prévisions haussières de l’€/$ non réalisées, l’euro connait enfin une trajectoire ascendante. Ce changement de cap reflète une évolution radicale de la perception du risque politique associé à l’Union européenne. Le point de départ de la hausse (17 mai) correspond d’ailleurs à l’annonce franco-allemande du projet de plan de relance. L’accord européen du 21 juillet pour engager son processus de mise en œuvre milite, dans un contexte de redressement des PMI, pour le...

Louis Boujard, CFA ...
  • Philippe Ourpatian

ODDO : Centrica cède Direct Energy à NRG Energy : quel read-X sur l’Europe ?

>Centrica cède sa commercialisation américaine d’énergies à NRG Energy - Centrica a annoncé la cession de sa filiale Direct Energy qui commercialise de l’énergie (électricité et gaz) aux Etats-Unis au groupe américain NRG Energy. La valeur d’entreprise de la transaction ressort à 3 625 M$. Direct Energy est l’un des plus importants fournisseurs de détail d’électricité, de gaz naturel en Amérique du Nord. Direct Energy a son siège social à Houston, au Texas, et des bur...

Jérôme VINERIER

Analyse court terme - GAS NATURAL : Les cours baissent.

La tendance est incertaine. Les cours baissent, et il y a une possibilité d'accélération baissière. Une nouvelle tendance baissière tente de démarrer.

Jérôme VINERIER

Short term view - GAS NATURAL : Falling prices.

The trend is uncertain. Prices are falling and they may accelerate to the downside. A new bearish trend is attempting to emerge.

Jérôme VINERIER

Analyse court terme - GAS NATURAL : La tendance est incertaine.

La tendance est incertaine. Les cours baissent, et il y a une possibilité d'accélération baissière. Une nouvelle tendance baissière tente de démarrer.

Jérôme VINERIER

Short term view - GAS NATURAL : The trend is uncertain.

The trend is uncertain. Prices are falling and they may accelerate to the downside. A new bearish trend is attempting to emerge.

Matthieu DRIOL

Medium term view - GAS NATURAL : The correction is gaining traction.

The background trend is clearly bullish. The correction is gaining traction. It is too early to qualify this action as a bearish reversal. The trend would be invalidated below the support at €19.90.

Louis Boujard, CFA ...
  • Philippe Ourpatian

ODDO : Centrica cède Direct Energy à NRG Energy : quel read-X sur l’Europe ?

>Centrica cède sa commercialisation américaine d’énergies à NRG Energy - Centrica a annoncé la cession de sa filiale Direct Energy qui commercialise de l’énergie (électricité et gaz) aux Etats-Unis au groupe américain NRG Energy. La valeur d’entreprise de la transaction ressort à 3 625 M$. Direct Energy est l’un des plus importants fournisseurs de détail d’électricité, de gaz naturel en Amérique du Nord. Direct Energy a son siège social à Houston, au Texas, et des bur...

Louis Boujard, CFA ...
  • Philippe Ourpatian

ODDO : Centrica sells Direct Energy to NRG Energy: what read-across for Europe?

>Centrica sells its US energy marketing business to NRG Energy - Centrica announced the sale of its subsidiary Direct Energy, which markets energy (electricity and gas) in the US, to American group NRG Energy. The enterprise value in the deal works out at $ 3,625m. Direct Energy is one of the biggest retail electricity and natural gas suppliers in North America. Direct Energy has its head offices in Houston, Texas, and regional offices in the US and Canada. The group ...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Naturgy : A difficult H1 forcing the group to issue a target for EBITDA 2020

>Neutral recommendation and target price of € 17.2 maintained, but 2020 EPS revised down -5.0% - The group has reported an H1 2020 performance that came in a shade above our forecasts. That said, during the conference call, management, in the face of trends in the underlying markets (electricity and gas) has, for once, issued a target for 2020 EBITDA at around € 4.0bn. Factoring this in we have lowered our 2020 EPS forecast by 5.0%. We are maintaining our target price...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Naturgy : Un S1 difficile qui force le groupe à délivrer une trajectoire d’EBITDA 2020

>Opinion Neutre et OC à 17.2 € maintenus, mais BPA 20 révisé de -5.0% - Le groupe a publié des performances au S1 2020 un peu supérieures à nos attentes. Toutefois lors de la conférence téléphonique, le management, face à l’évolution de ses marchés sous-jacents (électricité et gaz) a, pour une fois, publié un atterrissage d’EBITDA 2020 autour de 4.0 Md€. Nous l’avons intégré et dès lors révisé de -5.0% notre BPA 2020. Notre objectif de cours est maintenu à 17.2 €. Com...

Baptiste Lebacq ...
  • Philippe Ourpatian

ODDO : Are we headed for value convergence in offshore wind?

Increased competitiveness in onshore wind and photovoltaic projects will prompt integrated electricity firms to transition to offshore wind where installed capacity expansion is forecast at 20.7% per year out to 2030 and value creation is still significant. Enhanced renewable energy multiples will also benefit other players in the offshore industry (machine suppliers, cable makers, oil services providers, etc.). Among our Top Picks to play this theme, we would highlight EDF, Engi...

ING
Nadège Tillier

European utilities/Power recovers while natural gas languishes

After reaching an abrupt decline in April and May, power prices are gradually recovering from their depressed levels. The end of the lockdowns in May and June as well as a warm summer across Europe has helped power consumption regain. However, consumption is not yet back to its former levels and neither are power prices. The impact on utilities' cash flows will be limited in 2020 for those that have had appropriate hedging strategies but the negative impact could be seen within the next two to three years. However, the good news is that both power consumption and prices are on a recovery path ...

ING
Nadège Tillier

Naturgy and Iberdrola/1H20 results: a tale of two business models

Naturgy and Iberdrola released their first half 2020 results. The second quarter 2020 confirmed the trends seen in the first quarter with the Covid-19 pandemic impacting both companies with a differentiated intensity. Despite not being immune from the Covid-19 effects, Iberdrola continued to show strong results that we consider credit supportive with LTM 1H20 credit ratios in line with 2019. As far as Naturgy is concerned, the business model has been more acutely impacted by the pandemic with much lower gas demand and prices. Management lowered its YE20 EBITDA outlook from €4.7bn to €4bn a...

ING
Alyssa Gammoudy ...
  • Hendrik Wiersma
  • Jeroen van den Broek
  • Nadège Tillier
  • Suvi Platerink Kosonen
  • Timothy Rahill

Coffee, Croissants & Credit/

Utilities: Moody's affirms Naturgy at Baa2

ING
Nadège Tillier

IG European Utilities/Not all utilities are equal in the safe haven

The large majority of corporates will be negatively impacted by the Covid-19 pandemic, but some more than others. European utilities are seen as part of the safe havens. We agree with this but only to a certain extent. The Utilities sector is certainly less volatile than other consumer-related sectors. However, not all utilities are equal in front of the pandemic. Our view is that regulated network companies will suffer the least, while those largely exposed to power and gas generation and supply will be the hardest hit. The negative impact will be delayed by around 12 months for integrated an...

ING
Nadège Tillier

Naturgy/Robust 2019 results; we remain positive on the name despite future regulatory challenges

Naturgy posted robust financial results for the full year 2019 with an EBITDA of €4.6bn (vs €4bn in 2018). EBIT reached €2.9bn and net income €1.4bn. A year ago these last two financial indicators were in the red because of write-offs in relation to conventional power generation assets in Spain. In 2019, all segments posted a growth, including the Gas and Electricity branch. Naturgy's gross adjusted debt remains in line with the last few years at c.€19bn and net adjusted debt at c.€16.5bn. With strong cash flows, FFO/adj. net debt stands at c.21% according to our preliminary calcul...

Bruno Cavalier ...
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 07/27/2020

After years of unrealised €/$ bullish forecasts the single currency is finally on an upward trajectory. This change of course reflects a radical shift in the perception of the political risk associated with the European Union. The starting point for the rise (17 May) corresponds, moreover to the Franco-German announcement of the stimulus plan project. The European agreement of 21 July to begin the implementation process argues in favour, in a context of an upturn in PMIs, in favour of...

Louis Boujard, CFA ...
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF Small & MIDCAP MORNING NEWS - 27/07/2020

Après des années de prévisions haussières de l’€/$ non réalisées, l’euro connait enfin une trajectoire ascendante. Ce changement de cap reflète une évolution radicale de la perception du risque politique associé à l’Union européenne. Le point de départ de la hausse (17 mai) correspond d’ailleurs à l’annonce franco-allemande du projet de plan de relance. L’accord européen du 21 juillet pour engager son processus de mise en œuvre milite, dans un contexte de redressement des PMI, pour le...

Bruno Cavalier ...
  • Louis Boujard, CFA
  • Philippe Ourpatian
  • Sylvain Goyon, CFA

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 27/07/2020

Après des années de prévisions haussières de l’€/$ non réalisées, l’euro connait enfin une trajectoire ascendante. Ce changement de cap reflète une évolution radicale de la perception du risque politique associé à l’Union européenne. Le point de départ de la hausse (17 mai) correspond d’ailleurs à l’annonce franco-allemande du projet de plan de relance. L’accord européen du 21 juillet pour engager son processus de mise en œuvre milite, dans un contexte de redressement des PMI, pour le...

Louis Boujard, CFA ...
  • Philippe Ourpatian

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 07/23/2020

...

Louis Boujard, CFA ...
  • Philippe Ourpatian

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 23/07/2020

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NATURGY ENERGY GROUP SA sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of NATURGY ENERGY GROUP SA (ES), a company active in the Gas Distribution industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date June 19, 2020, the closing price was EUR 16.93 and its potential was estimated at EUR 18.97.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the we...

Expert Corporate Governance Service (ECGS)

Naturgy Energy Group – AGM 26 May 2020

Naturgy postponed the AGM initially called on 17 March in light of COVID-19. In this new call, the Company has removed the issue of ordinary bonds and other non-convertible debt securities, has submitted modifications of the AGM Regulations and Bylaws, and proposed the (re-)appointments of four proprietary Directors.   ECGS has concerns over the lack of independence on the Board (42%) and the overrepresentation of major shareholders (50%). Therefore, we recommend that shareholders oppose the (re-)appointments of proprietary Directors in items 6.2 to 6.6.   In item 7, the Company proposes t...

Expert Corporate Governance Service (ECGS)

Naturgy Energy Group - AGM 17 March 2020

In item 6.2, it is proposed to ratify the appointment of the company Rioja Sàrl as "proprietary Director", representing the shareholder CVC Capital Partners (20% of Naturgy's share capital). We note that it is not really a new appointment, as Rioja Sàrl replaced on the Board Rioja Bidco Shareholdings, with the same representative on the Board, Mr. Javier de Jaime Guijarro, who was appointed for the first time in 2018. We have concerns over the lack of independent representation (42%) and the significant number of representatives of major shareholders on the Board (2 representatives per major s...

Naturgy – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Expert Corporate Governance Service (ECGS)

Naturgy Energy Group - March, 05th 2019

In item 7, the Board proposes to appoint Mr. Scott Stanley as non-executive Director representing the significant shareholder GIP. Although GIP is not overrepresented (2 representatives, or 17% of Directors, with 20% of the share capital), serious concerns may arise over the lack of independent representation on the Board (42%). Therefore, we recommend opposition. In item 10, the Board proposes several amendments to the remuneration policy (binding vote), including a new incentive and the introduction of a claw-back clause. Although we welcome the introduction of the incentive plan, we note t...

Expert Corporate Governance Service (ECGS)

Etude de l'AG du 03/05/2017

In September 2016, the major shareholders "la Caixa" and Repsol sold 20% of Gas Natural shares to the infrastructure fund manager Global Infrastructure Partners (GIP). Following the transaction, Gas Natural's major shareholders are "la Caixa" (24.4%), Repsol (20.1%) and GIP (20%).On 21 September 2016, the Board decided several changes to its composition and regulations, to reflect the new shareholder structure. In items 8.1 to 8.8, it is proposed to appoint 8 non-executive Directors, all representing the major shareholders. As we have concerns over the lack of independent representation on the...

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