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

NATURGY ENERGY with less fundamental stars is reduced to Neutral

NATURGY ENERGY (ES), a company active in the Gas Distribution industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date February 26, 2021, the closing price was EUR 20.71 and its expected value was estimated at EUR 20....

Expert Corporate Governance Service (ECGS)

Naturgy Energy Group - AGM 09 March 2021

In item 4, the Company proposes to approve the distribution of an additional cash dividend of €0.63 for a total of €1.44 per share (€1’395.5 million) against 2020 results. Due to the effects of the pandemic, we recommend that companies still exercise caution while making decisions about dividends to avoid liquidity and financial risks. We note that a full dividend of €1.37 was delivered for FY 2019. Taking into account the decrease in revenues (-26%) and free cash flow (-10.7%) as well as a consolidated net loss of €347 million, we suggest that the Company revises their dividend for 2020, and ...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Naturgy : A growth target for 2021

>Neutral rating and target price of € 21.0 maintained - Restated for the retroactive deconsolidation of the electricity transmission and distribution activities in Chile being sold to the Chinese group China State Grid, results for 2020 were a shade below our expectations. The performance was marked by persistently difficult conditions in the gas markets, the pandemic and forex. For 2021, management's message remains reasonably optimistic with a qualitative guidance ...

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

Naturgy : A growth target for 2021

>Neutral rating and target price of € 21.0 maintained - Restated for the retroactive deconsolidation of the electricity transmission and distribution activities in Chile being sold to the Chinese group China State Grid, results for 2020 were a shade below our expectations. The performance was marked by persistently difficult conditions in the gas markets, the pandemic and forex. For 2021, management's message remains reasonably optimistic with a qualitative guidance ...

Louis Boujard, CFA ...
  • Philippe Ourpatian

Naturgy : Un objectif de croissance pour 2021

>Opinion Neutre et OC 21.0 € maintenus - Retraité de la déconsolidation rétroactive des activités de transmission et distribution d’électricité au Chili en cours de cession au groupe chinois China State Grid, les résultats de l’année 2020 sont ressortis un peu inférieurs à nos attentes. La performance a été marquée par des conditions toujours difficiles sur les marchés du gaz, la crise sanitaire et les changes. Pour 2021, le message du management demeure raisonnablem...

Arnaud Palliez

SUSTAINABLE INFRASTRUCTURE WEEKLY n°12 - February 1, 2021

ALJ Research - Investing in global listed infrastructure by integrating ESG issues This week our focus is on Naturgy (Score 67/100) and the influence of private equity shareholders on its transformation. We also look again at NextEra (Score 65/100) whose publication of the 2020 results has confirmed the solidity of its growth model.

Expert Corporate Governance Service (ECGS)

Naturgy Energy Group - AGM 09 March 2021

In item 4, the Company proposes to approve the distribution of an additional cash dividend of €0.63 for a total of €1.44 per share (€1’395.5 million) against 2020 results. Due to the effects of the pandemic, we recommend that companies still exercise caution while making decisions about dividends to avoid liquidity and financial risks. We note that a full dividend of €1.37 was delivered for FY 2019. Taking into account the decrease in revenues (-26%) and free cash flow (-10.7%) as well as a consolidated net loss of €347 million, we suggest that the Company revises their dividend for 2020, and ...

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...

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

Coffee, Croissants & Credit/PEPP & CSPP and Naturgy

Strategy: PEPP does not need to be used in full

ING
Nadège Tillier ...
  • Steven Trypsteen

Spanish utilities/Covid-19 and lower regulated remuneration take their toll on 9M20 results

Iberdrola[a], Naturgy[de], Red Electrica[de] and Enagas reported 9M20 results in the last few days. All four utilities have been impacted one way or the other. Behind Red Electrica's relatively flat 9M20 financial numbers, the company's remuneration has been impacted by the new Spanish electricity regulatory package in place since the beginning of the year. Enagas, whose regulated remuneration will be impacted in 2021 when the new regulatory period starts for gas, has seen its RCS remuneration down on lower gas consumption in Spain. Iberdrola's 9M20 results slightly retrenched compared to a ye...

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

Stephane Houri

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 10/29/2020

The current share price is the result of multiples, lower than the industry average, applied to consensus forecasts that are too low. We believe that the consensus and the market overestimate the cost of risk. The two main catalysts could be the quarterly results (scheduled for release on 3 November) and the anticipation of the lifting of the ban on dividends, concomitant with SREP 2020 (December). Buy recommendation and target price of € 50.3 reiterated. - ...

Stephane Houri

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 29/10/2020

Le cours actuel est la résultante d’un multiple inférieur à la moyenne du secteur appliqué à des prévisions de consensus trop basses. Nous estimons que le consensus et le marché surestiment le coût du risque. Les deux principaux catalyseurs pourraient être les résultats trimestriels (3 novembre) et l’anticipation de la levée de l’embargo sur les dividendes, concomitante au SREP 2020 (décembre). Opinion Achat et OC de 50.3 € réitérés. Cf. étude publiée hier soir. - ...

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...

NATURGY ENERGY with less fundamental stars is reduced to Neutral

NATURGY ENERGY (ES), a company active in the Gas Distribution industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date February 26, 2021, the closing price was EUR 20.71 and its expected value was estimated at EUR 20....

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...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch