Spanish gas company Naturgy saw its core earnings increase by 7% in the first half of the year, Reuters reports.
Spain’s successful gas network business counteracted a lower revenue from power generation and thinner margins in its liquefied national gas (LNG) business.
Meanwhile, the global LNG market has been impacted by a significant production increase which outperformed demand growth in Asia, consequently dragging prices down.
Naturgy revealed that its earnings prior to interest, tax, depreciation and amortization (EBITDA) reached 2.15 billion euros in the first half of the year, having grown from 2 billion euros in the year prior.
Additionally, Naturgy said that its planned savings from cost-cutting efforts would grow by 50% in 2019 to 150 million euros.
A proposal from Spain’s competition watchdog to cut regulated revenues from gas and electricity transport and distribution had troubled Naturgy’s stock over the past month, with investors decreasing 2 billion euros from Naturgy’s market value.
Naturgy’s priority has been the reduction of costs and exiting countries such as Colombia, Italy, Moldova and South Africa, ever since restricting its management team last year and also changing its name from Gas Natural.
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