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Investing.com -- Shares of Naturgy rose by 4.3% following the company’s announcement of a revised dividend policy and a new share repurchase program.
Naturgy’s updated dividend policy promises a higher dividend per share (DPS) floor, increasing from €1.60 per share in 2024 to €1.90 per share in 2027, surpassing the consensus estimate of approximately €1.39 per share average for the years 2025-27.
Additionally, the energy company has initiated a share buyback for roughly 88 million shares at €26.5 each, up to a maximum of 10% of the share capital, contingent on the commitment of reference shareholders to tender their shares.
The company’s strategic adjustments include lowering its renewable energy target to 9.5GW by 2027, down from the previous goal of 10GW by 2025.
In terms of financial guidance, Naturgy forecasts 2027 EBITDA to reach €5.3 billion compared to the consensus of €5.18 billion, with net income expected to be €1.9 billion against a consensus of €1.75 billion.
Naturgy presented its full-year 2024 results, which were generally in line with consensus expectations. EBITDA showed a slight year-on-year (YoY) decrease of 2.0% to €5.365 billion, while net income fell by 4.3% YoY to €1.901 billion. The company’s net debt was reported at €12.2 billion, lower than the company’s own guidance of approximately €12.8 billion.
In response to the company’s financial maneuvers, RBC commented, "We believe Naturgy is using its balance sheet to help fix issues of its reference shareholders."
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