Naturgy's renewables EBITDA soars 30% in H1 2024

Spanish power and gas utility Naturgy Energy Group SA (BME:NTGY) on Tuesday reported a renewables EBITDA of EUR 305 million (USD 331.2m) for the first half of 2024, posting an increase of 29.8% year-on-year.

The result was mostly driven by higher installed capacity and production in Spain, higher overall production in Latin America, and a positive evolution of the mark-to-market valuation of existing power purchase agreements (PPAs) in Australia, Naturgy said.

Naturgy’s only market where the renewables EBITDA finished in the red was the United States, with the company recording a negative EUR 3 million at end-June 2024 compared to a negative EUR 6 million in the year-ago period. According to the utility, this was because “higher revenues were offset by higher opex to attend increase capacity and the management of the development platform”.

During the six-month period, Naturgy increased production from its renewables -- solar, wind, hydro and others -- by 24.7% on the year to 7,705 GWh. The company’s total installed renewables capacity across its markets stood at 6,601 MW -- 1,154 MW of solar, 3,252 MW of wind, 2,134 MW of hydro and 61 MW classified as others.

In the same period last year, Naturgy had 5,695 MW of installed renewables.

Renewable gases, biomethane and green hydrogen, are becoming an important business segment for Naturgy. The utility currently operates 3 MW of biomethane capacity in Spain, which produced 92 MWh during the first half of the year.

The Naturgy group as a whole reported an EBITDA of EUR 2.85 billion and a net profit of EUR 1.04 billion, matching the previous year's figures. Naturgy's regulated power and gas distribution network businesses saw a 16% increase in EBITDA, while the energy management, generation, and marketing businesses experienced a 14% decrease due to declining global energy indices.

Naturgy also announced that will be releasing a new Strategic Plan for 2025-2030 by the end of the year.

(EUR 1.0 = USD 1.086)

Choose your newsletter by Renewables Now. Join for free!