Naturgy forecasts €7BN dividends payout by 2022
Energy company formerly known as Gas Natural to invest 5.3 billion euros in organic growth over next five years
The energy company Naturgy, known as Gas Natural until this Wednesday, has forecast that it will allocate 6.9 billion euros in dividends, as well as increase its share value by 59% to 1.59 euros, in the coming five years.
On Thursday, the firm presented its strategic plan for 2018 to 2022 in London. It will be centred on “the creation of value” and “profitability.”
Naturgy’s president, Francisco Reynés, re-affirmed that the plan will prioritize the organic growth of the company, with a total of 5.3 billion euros being allocated to these means.
Speaking in London in front of around 200 international investors, Reynés explained that the company is “not obsessed with having projects everywhere,” but rather it wants to create “value.”
The company also hopes to make a net profit of 1.8 billion euros in 2022, 32% more than the 1.4 billion euros of profit made last year.
With regard to its gross operating profit, the target has been set at 5 billion euros in five years, representing a 28% increase compared to 2017, when it stood at 3.9 billion euros.
One of the main pillars of the strategic plan is shareholder renumeration. In 2017, the dividend was set at one euro per share. It is set to increase by 59% up until 2022, according to the company.
The Catalan-origin natural gas company Gas Natural changed name on Wednesday, and will be known as Naturgy from now on. The main reason given by its officials is that they seek to expand internationally, so that they needed to have a shorter, more international name.
The firm was founded in Barcelona in 1843 with the name ‘Catalana de Gas i Electricitat’ in order to take care of the Catalan capital’s street lighting. Yet over the years it has become a multinational both in the supply of natural gas and electricity.