Naturgy Energy Group SA

Naturgy Energy Group SA, formerly Gas Natural SDG SA, is a Spain-based company active in the energy sector. The Company's activities are divided into four business segments: Gas & Electricity, which includes generation and renewables businesses, gas supply, marketing and logistics of liquefied natural gas (LNG) worldwide, as well as gas and electricity commercialization in Europe; Infrastructure Spain & EMPL - Medgaz, which comprises gas and electricity network businesses in Spain and the Maghreb gas pipelines; Infrastructure Latin America South Zone that implies gas and electricity networks businesses in Chile, Argentina, Brazil and Peru, and Infrastructure Latin America North Zone, which includes gas and electricity network businesses in Mexico and Panama.
  • TickerGAS
  • ISINES0116870314
  • ExchangeMadrid Stock Exchange
  • SectorGas, Water & Multi-utilities
  • CountrySpain

Analysts

Jorge Guimarães

Iberian Energy Monthly: February: mild weather impacts demand

The month of February was characterized by a generally mild weather pattern in Iberia, which impacted electricity demand, down 4.8% yoy to 24.3TWh (YTD -0.7% yoy). February was also weak in terms of hydro (3.6TWh, up yoy but 35% below the 5Y avg) and especially wind production, where the output of 4.5TWh was down 22% yoy and 34% below the 5Y avg (and the lowest February wind production of the last 8 years). However, the low wind/water impact on prices was cushioned by the low demand, with the thermal gap down yoy (-19% to 5.9TWh), while commodity prices were also marginally down vs Feb-18 (Bre...

Tancrede Fulop

Morningstar | NTGY Updated Star Rating from 26 Feb 2019

Naturgy is the only integrated international Utility in Europe to which we ascribe a moat. This is driven by the high weight of gas regulated networks in which the group has a demonstrated ability to regularly outearn its cost of capital whether in Spain or in Latin America. We believe this will continue due to high regulated returns in Latam and the fact that returns are not regulated in Spain where the group benefit from its leadership position. Altogether, networks provide cash flow visibility and sustainable organic growth.With 378 TWh of gas sold in 2018, of which 141 were LNG, Naturgy is...

Tancrede Fulop

Morningstar | Naturgy Is the Only International Integrated Utility in Europe With a Moat

Naturgy is the only integrated international Utility in Europe to which we ascribe a moat. This is driven by the high weight of gas regulated networks in which the group has a demonstrated ability to regularly outearn its cost of capital whether in Spain or in Latin America. We believe this will continue due to high regulated returns in Latam and the fact that returns are not regulated in Spain where the group benefit from its leadership position. Altogether, networks provide cash flow visibility and sustainable organic growth.With 378 TWh of gas sold in 2018, of which 141 were LNG, Naturgy is...

Tancrede Fulop

Naturgy Is the Only International Integrated Utility in Europe With a Moat

Naturgy released 2018 results below our expectations on a reported basis and set 2019 guidance above our estimates. We plan to increase our earnings and fair value estimates by a mid-single-digit rate following this publication. For the moment, we reiterate our EUR 22.30 fair value estimate for Naturgy along with our narrow moat and stable trend ratings. Ordinary EBITDA grew 12% to EUR 4.4 billion, accelerating from 10% at the end of September. Reported EBITDA grew 3% to EUR 4 billion, below our...

Jorge Guimarães

Naturgy: Too much optionality priced in for us

We see Naturgy as a company where investors seem to be factoring in in advance too much of the optionality value from potential future asset sales whose timing/value is uncertain. We do not dispute Naturgy’s strong execution so far in terms of portfolio reshuffling and cost cutting, and recognize its generous shareholder remuneration policy (returning 31% of market cap in dividends and buybacks until Dec-22). However, we remain sceptical about the possibility of further disposals over the short term in the Spanish gas distribution area (Nedgia) given our perception of regulatory risk about tha...

Jorge Guimarães

Iberian Energy Monthly: February: mild weather impacts demand

The month of February was characterized by a generally mild weather pattern in Iberia, which impacted electricity demand, down 4.8% yoy to 24.3TWh (YTD -0.7% yoy). February was also weak in terms of hydro (3.6TWh, up yoy but 35% below the 5Y avg) and especially wind production, where the output of 4.5TWh was down 22% yoy and 34% below the 5Y avg (and the lowest February wind production of the last 8 years). However, the low wind/water impact on prices was cushioned by the low demand, with the thermal gap down yoy (-19% to 5.9TWh), while commodity prices were also marginally down vs Feb-18 (Bre...

Tancrede Fulop

Morningstar | NTGY Updated Star Rating from 26 Feb 2019

Naturgy is the only integrated international Utility in Europe to which we ascribe a moat. This is driven by the high weight of gas regulated networks in which the group has a demonstrated ability to regularly outearn its cost of capital whether in Spain or in Latin America. We believe this will continue due to high regulated returns in Latam and the fact that returns are not regulated in Spain where the group benefit from its leadership position. Altogether, networks provide cash flow visibility and sustainable organic growth.With 378 TWh of gas sold in 2018, of which 141 were LNG, Naturgy is...

Tancrede Fulop

Morningstar | Naturgy Is the Only International Integrated Utility in Europe With a Moat

Naturgy is the only integrated international Utility in Europe to which we ascribe a moat. This is driven by the high weight of gas regulated networks in which the group has a demonstrated ability to regularly outearn its cost of capital whether in Spain or in Latin America. We believe this will continue due to high regulated returns in Latam and the fact that returns are not regulated in Spain where the group benefit from its leadership position. Altogether, networks provide cash flow visibility and sustainable organic growth.With 378 TWh of gas sold in 2018, of which 141 were LNG, Naturgy is...

Tancrede Fulop

Naturgy Is the Only International Integrated Utility in Europe With a Moat

Naturgy released 2018 results below our expectations on a reported basis and set 2019 guidance above our estimates. We plan to increase our earnings and fair value estimates by a mid-single-digit rate following this publication. For the moment, we reiterate our EUR 22.30 fair value estimate for Naturgy along with our narrow moat and stable trend ratings. Ordinary EBITDA grew 12% to EUR 4.4 billion, accelerating from 10% at the end of September. Reported EBITDA grew 3% to EUR 4 billion, below our...

Jorge Guimarães

Naturgy: Too much optionality priced in for us

We see Naturgy as a company where investors seem to be factoring in in advance too much of the optionality value from potential future asset sales whose timing/value is uncertain. We do not dispute Naturgy’s strong execution so far in terms of portfolio reshuffling and cost cutting, and recognize its generous shareholder remuneration policy (returning 31% of market cap in dividends and buybacks until Dec-22). However, we remain sceptical about the possibility of further disposals over the short term in the Spanish gas distribution area (Nedgia) given our perception of regulatory risk about tha...

Alexandre Iatrides ...
  • Alfred Glaser
  • Charles Lepetitpas
  • Delphine Brault
  • Emmanuel Matot
  • Louis Boujard
  • Martial Descoutures
  • Nicolas David
  • Philippe Ourpatian
  • Pierre Corby
  • Pierre Tegner
  • Rémi Adam
  • Stephane Houri

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 01/31/2019

This report assesses the consequences for BMW and Daimler of a “possible” scenario: an increase in US tariffs on imports from Europe (from 2.5% to 15%) and a decline in Chinese tariffs (from 25% to 15% irrespective of the origin). We estimate: i) the impact on EBIT at -€ 1.2bn for both, i.e. respectively 15% and 10%, and ii) the impact on the valuation at -€ 13.9bn and -€ 14.9bn, which are impressive figures but not realistic. Any increase in US tariffs would result in the relocation ...

Alexandre Iatrides ...
  • Alfred Glaser
  • Charles Lepetitpas
  • Delphine Brault
  • Emmanuel Matot
  • Louis Boujard
  • Martial Descoutures
  • Nicolas David
  • Philippe Ourpatian
  • Pierre Corby
  • Rémi Adam
  • Stephane Houri

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 31/01/2019

...

Alain William ...
  • Alfred Glaser
  • Anis Zgaya
  • Bruno Cavalier
  • Delphine Brault
  • Louis Boujard
  • Philippe Ourpatian
  • Roland Pfaender
  • Valentin Pernet

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 01/28/2019

The underperformance from Vinci and Eiffage end-2018 appears overdone: motorway traffic has admittedly been penalised by the gilets jaunes (“yellow vests”) movement but visibility remains excellent on cash flow generation with highly attractive valuations (FCF yield of 7% for Vinci and 10% for Eiffage). While M&A risk is henceforth more limited, we are upgrading our recommendation on Vinci to Buy (target price of € 90) but we continue to prefer Eiffage (target price of € 103). - ...

Alain William ...
  • Alfred Glaser
  • Anis Zgaya
  • Bruno Cavalier
  • Delphine Brault
  • Louis Boujard
  • Philippe Ourpatian
  • Roland Pfaender
  • Valentin Pernet

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 28/01/2019

...

Ahmed Ben Salem ...
  • Alexandre Iatrides
  • Louis Boujard
  • Philippe Ourpatian
  • Vincent Maulay

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 09/14/2018

...

NATURGY ENERGY GROUP SA sees a downgrade to Neutral on account of less fundamental stars

The independent financial analyst theScreener just lowered the general evaluation of NATURGY ENERGY GROUP SA (ES), active in the Gas Distribution industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date October 12, 2018, the closing price was EUR 21.56 and its target price was estimated at EUR 20.48.

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 week...

Gas Natural SDG SA (GAS) - Oil & Gas - Deals and Alliances Profile

Summary Gas Natural SDG SA (Gas Natural Fenosa) is an integrated gas and electric utility that carries out the exploration, development, liquefaction, regasification, transportation, storage, distribution and commercialization of natural gas. It also undertakes the generation, distribution and commercialization of electricity. Gas Natural Fenosa also provides expert operations and maintenance services for electricity generation facilities and industrial plants. The group has a presence in several countries, serving various customers across various industries on the five continents. Gas Natura...

Gas Natural SDG SA (GAS) - Power - Deals and Alliances Profile

Summary Gas Natural SDG SA (Gas Natural Fenosa) is an integrated gas and electric utility that carries out the exploration, development, liquefaction, regasification, transportation, storage, distribution and commercialization of natural gas. It also undertakes the generation, distribution and commercialization of electricity. Gas Natural Fenosa also provides expert operations and maintenance services for electricity generation facilities and industrial plants. The group has a presence in several countries, serving various customers across various industries on the five continents. Gas Natura...

Gas Natural SDG SA (GAS) - Oil & Gas - Deals and Alliances Profile

Summary Gas Natural SDG SA (Gas Natural Fenosa) is an integrated gas and electric utility that carries out the exploration, development, liquefaction, regasification, transportation, storage, distribution and commercialization of natural gas. It also undertakes the generation, distribution and commercialization of electricity. Gas Natural Fenosa also provides expert operations and maintenance services for electricity generation facilities and industrial plants. The group has a presence in several countries, serving various customers across various industries on the five continents. Gas Natura...

Gas Natural SDG SA (GAS) - Power - Deals and Alliances Profile

Summary Gas Natural SDG SA (Gas Natural Fenosa) is an integrated gas and electric utility that carries out the exploration, development, liquefaction, regasification, transportation, storage, distribution and commercialization of natural gas. It also undertakes the generation, distribution and commercialization of electricity. Gas Natural Fenosa also provides expert operations and maintenance services for electricity generation facilities and industrial plants. The group has a presence in several countries, serving various customers across various industries on the five continents. Gas Natura...

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)

proxy report 28/06/2018

The Board of Gas Natural has recently approved a reorganization of the Group's structure, including several changes to the corporate governance. From item 6.1 to item 6.8, shareholders are called to approve several amendments to the Bylaws, which are in line with the Group's reorganization. We recommend that shareholders approve all amendments, except the change in the Company's name (item 6.1), as the new name was not made available to shareholders at the time of release of this analysis (June 8). In item 9.1, the Board proposes to ratify the appointment of Mr. Francisco Reynés Massanet as C...

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...

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.

ResearchPool Subscriptions

Get the most out of your insights

Get in touch