Electricity company gains more profit despite the impact of a contrary conviction in Argentina for which it is estimated to pay more than 300 million euros
Naturgy posted a net profit of €557 million in the first half of the year, an increase of 15.1% from last year, the company reported to the National Securities Market Commission (CNMV) on Thursday. And that the Spanish electricity company has taken into account a contrary ruling from the court in Argentina, for which it would have to pay an estimated 312 million euros, depending on the ruling received at first instance.
The effect of this ruling translates into a negative direct effect of €126 million on net profit, as Naturgy’s stake in Metrogas is 55.6%. In its statement, Naturgy explains that they had to provide according to a criterion of “maximum caution”.
In fact, Naturgy had scheduled the presentation of the results for last Friday, August 5, but a verdict announced that same day forced it to postpone the publication of its semi-annual accounts. The penalty is related to the conflict that keeps its stake in Metrogas open due to the cessation of shipments of Argentine natural gas to Chile since 2009. And while the company is appealing the ruling, Naturgy has preferred to avoid the possible effects that the confirmation of the penalty as a non-ordinary provision would have in its semi-annual accounts.
The good performance of the wholesale gas business at the international level has led to a positive increase in the company’s results from January to June, despite the current market volatility. Ordinary profit grew by 28% to 717 million euros. Net sales for its part reached a volume of EUR 16,737 million, 83% higher than the same period a year ago, with gross operating income (Ebitda) of EUR 2,047 million, 22% more.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
