Reaffirms the “strategic sense” of the Gemini project and will update its ‘road map’ to 2025
Naturgy’s board of directors have closed, at least momentarily, the gap opened by the possible appointment of a CEO, after the resignation of the offer of the position by the director Ignacio Gutiérrez-Orrantia, ratifying “his firm commitment to the project industry” of the company and “his total confidence” in the management team, led by the executive president, Francisco Reynés.
Likewise, the energy company will proceed to update its objectives to 2025, coinciding with the presentation of its results for the first half of this year on Monday, July 24, in which it will revise the floor of the annual dividend for the years 2023-25 upwards until 1.40 euros per share.
In a statement to the National Securities Market Commission (CNMV), the company indicated that, “given the various information that has appeared in recent days, all the shareholder representatives have wanted to ratify their firm commitment to the company’s industrial project and his total confidence in the management team”.
Naturgy’s board of directors met this Tuesday, although in the information sent to the stock market supervisor it does not mention at any time that the possible incorporation of a CEO was discussed, with the aim of analyzing the evolution of the 2021-2025 strategic plan, which is in the middle of its execution, and reassess the dividend policy as promised in July 2021.
In addition, the management team has updated the status of the Geminis project, announced in February 2022 for the division of the company into two -one in which the regulated businesses are integrated and another with the rest- but which has been parked since then, and the governing body of the company has verified “its strategic sense and has summoned the team to continue analyzing the possible execution alternatives and their associated calendars”.
In this way, the company revives a Gemini project that was presented to some of its main partners -CVC and GIP, with 20% each- as a window of opportunity to leave the company, once they consider that they have completed his investment cycle in the company. The other two large shareholders in Naturgy are Criteria (26.7%) and the Australian fund IFM (14%).
Thus, after reaching the middle of the execution of its strategic plan to 2025, Naturgy has exceeded all its committed objectives, thus reviewing and improving expectations for the coming years.
REVIEW THE FLOOR OF THE DIVIDEND AT 1.40 EUROS.
For this reason, the governing body of the company reviews the floor of the annual dividend for the years 2023-25 at 1.40 euros a share, always subject to maintaining a credit rating of ‘BBB’ for S
Last March, Reynés, on the occasion of the general meeting of shareholders in which he was re-elected executive president, already promised to distribute in this 2023 a dividend “at least equal to that of 2022 of 1.20 euros per share” , with which the company now takes its commitment to remuneration with its shareholders much further.
The energy company considered that this new land for the 2023-25 period is “consistent with the average ‘payout’ of 85% announced in July 2021.”
Based on current share prices, this represents a return of 5.4% and “compensates the thousands of shareholders of the company for the rise in costs due to interest rates and inflation,” he added.
In this sense, the board recognizes “the high degree of commitment” of the entire Naturgy team, which “has made a decisive contribution to achieving these results despite a difficult and volatile situation in the energy markets”.
RAISES EBITDA TARGET FOR 2025 TO 5,100 MILLION AND CUTS INVESTMENTS.
The update of Naturgy’s ‘roadmap’ includes an increase in the group’s gross operating profit (Ebitda) to 5,100 million euros in 2025, compared to the 4,800 million euros previously forecast, as well as a reduction in investments to 13,200 million euros, compared to the 14,000 million previously estimated for the period 2021-2025.
Energy sources indicated that after the good performance of the 2018-2022 strategic plan, in which the company exceeded its established commitments, Naturgy “has reviewed and improved the prospects for the coming years contained in its roadmap for the period 2021- 2025”.
“The group’s results demonstrate the effort and good work of the entire team and the new forecasts confirm their high degree of commitment. This is a reflection of the solidity of Naturgy’s industrial project. Between 2021 and 2025 we are going to invest to develop our industrial plan more than 13,000 million euros”, they added.
Meanwhile, the net debt target of the energy company led by Francisco Reynés places it at 16,000 million euros in 2025, compared to the previous 16,900 million euros.
GUTIÉRREZ-ORRANTA RULES OUT LEAVING CITI.
This Tuesday, hours before the Naturgy council meeting, Citigroup investment banker Ignacio Gutiérrez-Orrantia ruled out leaving the financial institution to aspire to become CEO of Naturgy, as was considered in various media, as he learned Europa Press in financial sources.
The banker was one of the names being considered as a possible CEO of Naturgy, at the request from the company’s stable core of shareholders to name a number ‘two’ and to determine what functions would be his responsibility and what would be the distribution of powers with Francisco Reynés, sole executive of the group.
In any case, Criteria, Naturgy’s largest shareholder, already ratified on Monday “its confidence” in the company’s management team headed by its president, Francisco Reynés, and indicated that it would support their proposals “aimed at being able to face the important challenges of the company in the coming years.
