Naturgy boasts of shareholder "unanimity": new strategic plan and autoopa for 10% of the capital

MADRIDNaturgy –formerly Gas Natural– has taken advantage of the presentation of its 2024 results this Thursday (1,901 million euros in profits in 2024, 4.3% less than the previous year) to launch its strategic plan for the period 2025-2030 and announce a self-purchase of 10% of the share capital.

These are two not insignificant movements that the company chaired by Francisco Reynés has put on the table with the "unanimous" support of the main shareholders, Reynés himself assured in a press conference this Thursday. "This is not a mess," said the executive president. Words with which he wanted to end the debate on the discrepancies that are known to exist, or existed, between those who control the company's share capital: CriteriaCaixa (26.7%); CVC (20.7%); GIP-BlackRock (20.6%) and IFM (16.9%).

In fact, it is this picture (only four shareholders have more than 80% of the share capital) that has led to the decision to take a self-takeover bid. This move means that Naturgy will buy shares from itself. Specifically, 10% of the share capital, to give the company greater liquidity in the market. The fact of having a strong presence of investment funds in the capital means the lack of free float, that is, shares that are traded on the stock exchange (liquidity), which the CNMV asked him to correct. "We must return the company to its natural state of liquidity," Reynés defended in a press conference.

The takeover bid that Naturgy is proposing will mean that these shareholders sell, in relation to their weight, a part of their capital. The takeover bid, which will be set at 26.5 euros per share (the price that Naturgy considers the share is worth), will involve an outlay of around 2.5 billion euros. This would allow small investors to enter, although it does not mean that the same shareholders who are now coming cannot be the ones who, later on, buy shares. In the case of CVC, for example, it is difficult to think because it has wanted to leave for a long time, but CriteriaCaixa, a historic shareholder, could, when the time comes, become even stronger. In this sense, it also does not mean that a scenario of a foreign takeover bid cannot reappear in the future, as the one proposed by the Emirati TAQA"It is a matter for the shareholders," said Reynés. The idea is to "return the purchased shares to the market, with flexibility and without a specific timetable," said the gas company.

New direction

However, the largest gas company in Spain has set out in black and white its course until 2030. The strategic plan foresees an investment of 6.4 billion euros, not including "inorganic growth opportunities", that is, exploring possible acquisitions, although this is not its priority. 75% of the investments will be concentrated in Spain and, in particular, in improving the transmission and distribution network and in the deployment of renewables.

The new plan also foresees continuing to improve the dividend policy. Naturgy plans a remuneration of 1.9 euros per share in 2027, which will mean distributing 5.8 billion in dividends only between 2025 and 2027. Looking ahead to the 2025 dividend (on the 2024 financial year), despite the drop in profits, . This represents an improvement of 14% compared to the dividend distributed last year.

As for profits, the slight drop recorded in 2024 is explained by the drop in gas and electricity prices. However, this is the second best historical result after last year, when Naturgy reached almost 2,000 million euros. The gas company has reported that gross operating profit (EBITDA) stood at 5,365 million euros, which also represents a slight drop compared to 2023. 53% of this EBITDA is explained by the regulated business (energy transmission and distribution infrastructure, both gas and electricity) and the rest by the business.

Advice and return from the headquarters

Naturgy has also just approved changes to its board of directors, which not only allows it to comply with the principle of proportional representation and maintain a sufficient number of independent directors, but also responds to IFM's demand for one more director. Thus, the gas company goes from twelve to sixteen directors. Apart from IFM, the other seats will be occupied by CriteriaCaixa, BlackRock (GIP) and CVC.

Regarding the return of the company's headquarters to Catalonia, Reynés has limited himself to saying that it has not been discussed. "We will discuss it when the time comes and we will do what we have to do," he said. In any case, he acknowledged that he saw a "change" with the Government of Salvador Illa regarding the processing of renewable projects.