Gas Natural SDG SA, Spain's largest natural-gas supplier, said profit fell 5.8 percent in the fourth quarter because it didn't repeat one-time gains from selling assets.
Net income fell to 208 million euros ($274 million) from 220 million euros a year earlier, the Barcelona-based supplier said in a regulatory filing today. The decline was limited by earnings growth at the utility's electricity-generation unit.
Chief Executive Officer Rafael Villaseca has built power plants to profit from Spain's reliance on natural gas to meet new electricity demand. The utility was forced to sell most of its gas-transport business because of government regulations, and it failed this year in a plan to acquire Endesa SA, the nation's largest power producer, in a hostile takeover.
The shares rose 1 cent to 32.92 euros as of 9:32 a.m. in Madrid. Profit of 195 million euros was expected, according to a Bloomberg News survey.
During 2006, Gas Natural booked a 248-million euro gain from the sale of shares in Enagas SA, the operator of Spain's network. Gas Natural had by August met government demands that it sell all except 5 percent of that company.
Gas Natural has expanded its supply business in Latin America and built gas-fed power plants in Spain to make up for the loss of its near-monopoly in that market.
Villaseca's plan to take over Endesa was thwarted when Germany's E.ON AG, made a higher bid that he could not match. Vice-Chairman Antonio Brufau said last month the gas supplier will now seek other alternatives to link more closely the gas and electricity businesses.
New Construction
Spain and other European countries are replacing coal-fed power plants with gas-fed units because the latter are more efficient and produce less carbon dioxide, a gas blamed for global warming. Europe's emissions-trading program forces utilities to buy permits for every ton of the pollutant they spew that exceeds their government allotment.
Earnings before interest, tax, depreciation and amortization, or ebitda, at Gas Natural's electricity unit in Spain increased more than fourfold to 55 million euros after the utility started a gas-fed power plant in Cartagena, in the south-east of the country.
The supplier has 2,800 megawatts-worth of gas-fed power plants and is building another 2,000 megawatts, which it plans to have running by the end of 2008.
Gas Natural's Latin American gas business had an ebitda of 97 million euros, up 10 percent, driven by gains at its largest unit, in Brazil.
Net income fell to 208 million euros ($274 million) from 220 million euros a year earlier, the Barcelona-based supplier said in a regulatory filing today. The decline was limited by earnings growth at the utility's electricity-generation unit.
Chief Executive Officer Rafael Villaseca has built power plants to profit from Spain's reliance on natural gas to meet new electricity demand. The utility was forced to sell most of its gas-transport business because of government regulations, and it failed this year in a plan to acquire Endesa SA, the nation's largest power producer, in a hostile takeover.
The shares rose 1 cent to 32.92 euros as of 9:32 a.m. in Madrid. Profit of 195 million euros was expected, according to a Bloomberg News survey.
During 2006, Gas Natural booked a 248-million euro gain from the sale of shares in Enagas SA, the operator of Spain's network. Gas Natural had by August met government demands that it sell all except 5 percent of that company.
Gas Natural has expanded its supply business in Latin America and built gas-fed power plants in Spain to make up for the loss of its near-monopoly in that market.
Villaseca's plan to take over Endesa was thwarted when Germany's E.ON AG, made a higher bid that he could not match. Vice-Chairman Antonio Brufau said last month the gas supplier will now seek other alternatives to link more closely the gas and electricity businesses.
New Construction
Spain and other European countries are replacing coal-fed power plants with gas-fed units because the latter are more efficient and produce less carbon dioxide, a gas blamed for global warming. Europe's emissions-trading program forces utilities to buy permits for every ton of the pollutant they spew that exceeds their government allotment.
Earnings before interest, tax, depreciation and amortization, or ebitda, at Gas Natural's electricity unit in Spain increased more than fourfold to 55 million euros after the utility started a gas-fed power plant in Cartagena, in the south-east of the country.
The supplier has 2,800 megawatts-worth of gas-fed power plants and is building another 2,000 megawatts, which it plans to have running by the end of 2008.
Gas Natural's Latin American gas business had an ebitda of 97 million euros, up 10 percent, driven by gains at its largest unit, in Brazil.
No comments:
Post a Comment