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UTILITIES: Naturgy (NTGYSM Baa2/BBB/BBB): 1H24 Results

UTILITIES

Marginal positive for spreads.

  • Naturgy’s 1H EBITDA was flat YoY. That is 18% ahead of consensus but only 2 analysts contributed. Growth in regulated activities offset normalising margins in unregulated.
  • FCF came in at €0.68bn, down from exceptional levels of €1.98bn YoY.
  • ND/EBITDA unchanged YoY at 2.2x.
  • Sees FY24 EBITDA at €5.3bn, 8% ahead of consensus, leverage of 2.5x vs 2.7x expected helped by capex guidance 7% lower than expected.
  • Preparing a new 2025-30 strategic plan.

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