Naturgy is one of the securities that is doing the best in the selective index of Spanish equities. Both so far this year and last year, and to the point that it is one of the best positions for make better use of savings. Not surprisingly, it belongs to one of the most bullish sectors of the stock market such as electricity. Where very good returns are being achieved in all companies that are listed at the moment. With such relevant listed companies as Iberdrola, Endesa or Naturgy itself. With very favorable perspectives on how its evolution can be in the coming months.
With regard to Naturgy, it should not be forgotten that the company chaired by Francisco Reynés has indicated that, without taking this accounting adjustment into account, it would have obtained an ordinary profit of 1.245 million euros. Namely, 57% more What small and medium investors liked a lot with an increase in their price. On the other hand, Naturgy's dividend increased 30% last year, to 1,3 euros per share. Being another of the incentives to opt for this stock market proposal of the stock market sector. Being in the portfolio of many financial analysts.
It should also be noted that this company in the energy sector has been characterized by its little volatility, when setting their prices in the equity markets. It rarely exceeds presenting rises or falls above 2%, which makes it one of the most stable values of national equities. With a line of business that is also stable and that makes it a refuge for the most conservative investors in Spanish parks. Like its colleagues in the sector, such as Endesa or Iberdrola among some of the most relevant.
Naturgy: your profits grow
Naturgy has successfully closed the 2018 financial year, which has been marked by the arrival of a new executive chairman, the entry of new shareholders, the renewal of the board of directors and a new organizational structure for a simpler, more transparent and more autonomous management business. A year in which the energy multinational has presented to the market a roadmap to 2022 for its transformation, and has launched a action plan to achieve the objectives set through four pillars for the creation of value.
Thanks to this new strategy, the company has already begun to crystallize the value in its income statement just six months after presenting its Strategic Plan 2018-2022, with an ordinary EBITDA of 4.413 million euros, 12% more than in the previous year; and an ordinary net profit of 1.245 million euros, 57% higher than in 2017.
Facing the energy transition
The CEO of the company, Francisco Reynes, he highlighted that “we have established the bases to face the transformation of the group, reposition the business in the face of the energy transition and achieve the objectives set in the new roadmap. The results for the 2018 financial year show a positive evolution of the businesses, but it will be during the next few years when we will see a more substantial improvement in results as we advance in the execution of the plan ”.
He also wanted to highlight "the important simplification work that has been carried out and the determination to create value for the shareholder." In addition, he pointed out that "the agreement with Sonatrach or the new investments in renewables in Brazil and Australia are outstanding examples of positive progress at the international level." This strategic plan has been very well received by investors and as a consequence, purchases have clearly been imposed on sales. Under a flawlessly uptrend, as on the other hand all the values of the electricity sector show, without exception of any kind.
Presence in Brazil
Another aspect that is giving consistency to the value is the strong presence in other international areas. As for example, in Brazil where the interests of the electricity company have been renewed and it plays a very relevant role in its current business accounts. In this sense, it should be noted that Naturgy, through Global Power Generation (GPG), its international electric power generation subsidiary, has started the commercial operation of the Guimarânia solar plants, located in the state of Minas Gerais.
The company has invested more than 95 million euros in the development of these two photovoltaic infrastructures that will allow the generation of 162 GWh per year. These new plants have involved an investment of more than 95 million euros in an area of land of 143 Ha and have set a new record in the execution period of its more than 250.000 panels manufactured in Brazil (29%) and China (71 %). Being a very important part of the company strategy line.
Characteristics of this value
The former Gas Natural is currently one of the stocks with the best technical aspect of all those that make up the Ibex 35. It is true that during the increases in equities it lags a little behind in its positions. While on the contrary, and this is the most important thing, in the recessive periods of Spanish equities, it does much better than the other listed ones. As can be seen in the last trading sessions. With a volume of contracting, on the other hand, very important and that reflects the interest on the part of small and medium investors.
Naturgy is a value that can be considered as high cap. In other words, there is an important exchange of securities between investors every day. A segment that comes mainly from the most defensive or conservative elements of the financial markets. Beyond other technical considerations and maybe even from the point of view of its fundamentals. Being one of the stock market proposals that has appreciated the most in recent months, around two digits.
Investor interest
In any case, there is another aspect that is having a very positive impact on the electricity price. It is the fact that it is recommended by a good part of the financial agents who consider that it is in a position to buy. Despite the strong revaluations it has experienced in the last two years. In this sense, they consider that it still has significant growth potential. At least as far as short and medium term and above some of the most important blue chips in Spanish equities.
Within this general context, it is one of the values in which the radar will have to be set to take positions in the coming days. Especially if it is accompanied by a good performance in international equity markets. However, if unstable movements are generated in them, there is no doubt that this value is one of the least affected, as we have commented previously. You can be more secure in your positions, although without the profitability produced by the more aggressive values of the selective benchmark index of the Spanish stock market.
With a dividend close to 6%
On the other hand, another of the additional values to be hired by investors is that it generates a very attractive dividend every year. With a annual and guaranteed interest very close to 6%, one of the highest in national equities. So that in this way, small and medium investors can form a portfolio of fixed income within the variable. Regardless of the evolution of your shares in the equity markets. Conforming as a very powerful option to create a stable savings bag for the next few years.
All this, in an environment where banking products offer minimal profitability as a consequence of cheaper price of money. With intermediation margins that barely exceed the 0,50% threshold, as is currently the case with high-income accounts, time deposits and, in general, with savings plans. This fact causes many of the savers to lean towards values like this that offer a return on capital that is really very interesting from any point of view. Through various payments made throughout the year.
On the other hand, there is the fact that it represents a line of business that is very stable and recurring, such as electricity. As at this time, consumers are paying a very expensive price for electricity on their household bills. This is a factor that is influencing the share price of this company in the electricity sector. Although in strong competition with the other companies in this energy services business line. Either way, at this time it is more interesting to open positions than to close them. At least in the short term as a strategy to make the savings profitable with a greater chance of success.