Naturgy’s board of directors pronounces itself after days of speculation about the possible arrival of a number two for Francisco Reynés. “Given the various pieces of information that have appeared in recent days, all the shareholder representatives have wanted to ratify their firm commitment to the company’s industrial project and their total confidence in the management team,” the company stated in a private information sent to the National Securities Market Commission (CNMV).
The 12 members of the council were stored yesterday for more than four hours to study the new distribution of powers in the gas company and the role that the future CEO will have. However, the statement sent to the CNMV does not give more details about the role that the future CEO will finally have. Yesterday the withdrawal of Ignacio Gutiérrez-Orrantia appeared after almost realizing his appointment during the last week. The pressure from CVC Capital Partners and Global Infrastructure Management (GIP), which together account for 40% of the capital, for Reynés to delegate part of his functions is what would have motivated the Bilbao manager’s no.
The Mallorcan executive has been the president and CEO of Naturgy since February 2018 and for his signing he made it a condition to have 100% of the executive functions. Isidro Fainé, who did not have them, took over as his trusted man when Reynés was vice president and delegate director of Abertis. His appointment also meant the departure of the then CEO of Gas Natural Fenosa, Rafael Villaseca. He was reelected to the post just a few months ago for another four years.
Relaunches Gemini
The management team of the gas company also discussed the update of the Geminis project. The council once again confirms its “strategic sense” and called on its team “to continue analyzing the possible execution alternatives and their associated calendars.” Naturgy’s objective continues to be to split into two companies. One of the two groups will manage the liberalized businesses in an integrated manner (Naturgy MarketsCo): the development of renewable energies; For its part, the other will glue all the part of regulated infrastructures (Naturgy Networks) of distribution and transmission of energy
On the other hand, the board analyzed the evolution of the 2021-2025 strategic plan, which is in the middle of its execution, and reassessed the dividend policy, as promised in July 2021. In this sense, it raises the floor of the annual dividend for the period at 1.40 euros per share, always subject to the maintenance of a BBB credit rating by S&P. “This new floor is consistent with the average ‘payout’ of 85% announced in July 2021. Based on current share prices, this represents a return of 5.4% and compensates the company’s shareholder miles for the rise in costs due to interest rates and inflation,” says the company.
The company will release more information on updating its 2025 targets on July 24, coinciding with the publication of its half-year results. However, it has given a few small brushstrokes: it plans to achieve a gross operating result (Ebitda) of 5,100 million euros, compared to the previous objective of 4,800 million, and to reduce the net debt to 16,000 million (900 million less). For its part, investments will drop from 14,000 to 13,200 million euros. Naturgy was the first Ibex 325 company to benefit from the reform of the law that allows not presenting quarterly results.
“The board has recognized the high degree of commitment of the entire Naturgy team, which has contributed decisively to achieving these results despite a difficult and volatile situation in the energy markets,” the letter states.
