Naturgy: Renewable Earnings Dip 10 PercentBy Cinthya Alaniz Salazar | Wed, 08/04/2021 - 11:30
Spanish power and gas utility Naturgy Energy Group SA reported its renewable and new business sector fell year-to year by almost US$24 million or 10.1 percent for the first six months of 2021. Even with non-ordinary items included, the company still represented a 4.1 percent decrease.
The company disclosed ordinary EBITA earnings above US$2 billion representing an increase of 3 percent. Meanwhile net profits stood at almost US$661 million for a 17 percent increase year-to-year.
Overall, these figures represent a modest recovery in the face of an ongoing pandemic, unexpected repair costs due to weather damage, higher operating expenses in Spain, lower margins in Spain and Australia, lower wind resources in Mexico and a negative foreign exchange in Latin America.
This comes after focusing their growth efforts in renewable energy projects, particularly in Spain, Chile and Australia, where the company seeks to increase its presence by 750 MW of installed capacity. Efforts that met with an awarded 235 MW solar and wind power auction in Spain and a recently 45 MW in the Canary Islands—thereby doubling its installed capacity in the region.
Nevertheless, the company has managed to increase its renewable energy production capabilities by 12.7 percent year-to-year across installed wind, solar, hydro and other technologies. From their total 5,177 MW production capacity they reported an increased output of 6,128 GWh representing a growth of 21.6 percent.
However, even with higher wind and hydropower energy production in Spain and new operating capacity in Chile, the company will not be able to increase the final results of their renewable business sector, according to a financial statement.
These results, however, have not slowed the company’s expansion of renewable power generation, as a matter of fact, the company pledges to invest a little over US$90 million in the development of 58 MW wind farm in Australia which is scheduled to begin construction later this year, the aim being to have it operational by 2023.
Overall, the company seems to be recovering well in spite of the economic challenges it has faced; more importantly, it seems ready to pivot to the incoming challenges that the clean energy transition will bring.
(USD 1.18 = EUR 1.0)