Naturgy's net profit for the first half of 2010 increases 10% due to higher energy prices

The net profit of Spanish power company Naturgy for the first half rose by 10% compared to the same period last year, exceeding some analysts' expectations as cold weather and international tensions boosted energy prices.

Naturgy's shares fell by 1.2% at mid-morning after the Spanish lower chamber rejected a bill that was proposed by the Spanish government on Tuesday to strengthen the market for electricity following the massive blackout in April.

In the first half, net sales totaled 9.96 billion euro and the company's profit increased to 1,15 billion euros.

Naturgy expects to see its net profit increase from last year's 1.9 billion euro to over 2 billion this year. The company said that it expected to see its bottom line at around 1.9bn euros per year between 2025-2027.

The company expects to earn more than 5.3 billion euro in 2024 compared to 5.37 billion euro in 2024.

Renta4's Angel Perez told investors in a letter that the actual profit figures and forecasts were above his expectations. Brokerage RBC stated in a separate report that earnings were higher than the consensus while full-year guidance was on track.

The company also said that it had benefited from the higher price of natural gas in international markets where geopolitical tensions and concerns over disruptions have driven up prices.

The cold weather in Spain, especially during winter and spring, also increased the demand for gas.

(source: Reuters)