Naturgy's profit for the first quarter of 2018 increases 5% due to higher electricity generation and network expansion

The Spanish 'power company Naturgy' reported a 5% increase in its first-quarter profits to 530 millions euros ($620million) due to higher electricity generation and increased network growth in the face of high energy prices caused by the Middle East War.

Strikes and the conflict have caused energy facilities to be closed or damaged, which has led to higher fuel prices.

Naturgy said that the war-driven surge in gas prices boosted its core earnings, but had no negative impact on its business as it does not have any contracts with the region.

In?Spain, its network business increased and its thermal and renewables installed capacity increased compared to last year's first quarter.

Naturgy?invested in the first three months of this year 339 million Euros, mainly in distribution networks and in renewable projects. The total renewable installed capacity has reached 8.1 gigawatts. Another 1.2 GW is currently being constructed and will be operational in the coming year.

Stephen Fernandez said that Naturgy, the global head of finance markets and corporate development, was interested in buying smaller companies in the renewables industry.

Naturgy's total?revenue dropped 6.9% to 5,10 billion euros but was still well above analysts?prediction of 4,51?billion. EBITDA (earnings before taxes, depreciation, and amortization) increased 6.5%, to more than 1.36 billion euro, in line with the market consensus.

It paid a final dividend of 0.57 euros in cash per share on March 31. This brings the total dividends for 2025 up to 1.77 euros per shares - an increase of 10.6% over 2024.

As of 1000 GMT, shares were down?2.5% to 26.98 Euros.

(source: Reuters)