Gas Natural Aims to Invest EUR1.7 Billion Annually Until 2022

   By Alberto Delclaux 
 

Gas Natural SDG SA (GAS.MC) said Thursday that it aims to invest about 1.7 billion euros ($1.97 billion) on average annually until 2022, adding it is targeting a minimum 5% annual increase to its dividend from 2019.

The Spanish energy company, renamed Naturgy Energy, said in 2022 it expects to reach earnings before interest, taxes, depreciation and amortization of about EUR5 billion, from EUR3.92 billion in 2017, and a net income of about 1.8 billion, from EUR1.36 billion last year. Net debt that year should stand at EUR16.4 billion, the same level as in 2017.

The company is under pressure from two of its major shareholders to improve results, after recent lackluster performance. They are Global Infrastructure Partners LLC, which holds 20% of the company and Rioja Bidco--controlled by CVC Capital Partners Ltd. and Corporacion Financiera Alba--which owns another 20%.

Chief Executive Francisco Reynes, who arrived in February from Abertis Infraestructuras, said Wednesday that the company doesn't rule out growing through acquisitions, but noted that he was more interested in value than size.

Write to Alberto Delclaux at [e-mail]

(END) Dow Jones Newswires

June 28, 2018 05:55 ET (09:55 GMT)

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