The four largest listed energy companies in Spain (Iberdrola, Endesa, Naturgy and Repsol) made a joint profit of 10.247 million euros in the first nine months of 2024, surpassing the record profit of 9.037 million they had made until September 2022.
That year, natural gas prices shattered all-time highs after the energy crisis that followed Russia’s invasion of Ukraine in February 2022, and in the first nine months of that year, the five highest major players in the sector (including Cepsa, which was not listed on the stock exchange) recorded a profit of more than 10 billion.
This extraordinary context and the “benefits that fell from the sky” against which the International Energy Agency (IEA) had warned at the outbreak of the conflict in Ukraine led the government to mobilize with a battery of measures to mitigate the impact on consumers, such as reducing risks for consumers. VAT reductions on the invoice, strengthening of social ties, introduction of what is called the gas ceiling for electricity production or even the extraordinary tax on the sector.
However, this tribute, which the PSOE and Sumar had agreed in their government agreement to make permanent by reformulating it, has just declined this week due to the lack of parliamentary support, and specifically from Junts and the PNV.
With the price and inflation crisis already overcome, the four main listed energy companies recorded this new profit record for the first nine months of the year despite the decline in profits of Repsol, which was the last to present its results on Thursday.
Spain’s largest oil company, whose president, Antonio Brufau, celebrated 20 years in office on Sunday, was the hardest hit by the tax (which taxes company sales, not profits) and led the campaign for the to spill. Repsol reduced its profits between January and September by 37%, to 1,792 million, a figure well below the record of 3,222 million it recorded during the same period of 2022, in a context of “normalization” of the market.
Despite the decline in profits, Repsol announced a 19% increase in the interim dividend for the year, to 0.475 euros per share. Its CEO, Josu Jon Imaz, celebrated the tax cut on Thursday: “Fortunately, the problem is resolved” and it is “a positive decision that allows us to move forward with the industrial investments that we have planned in Spain” , he declared. the former leader of the PNV.
The sector’s record profits for the first nine months of the year do not include figures from Spain’s other major oil company, Cepsa, recently renamed Moeve to illustrate its shift towards renewable energy. The company from the emirate of Abu Dhabi will present its quarterly results on November 24.
The record profits of these first nine months are mainly explained by the results obtained by Iberdrola and Naturgy. In the lead in terms of profits, the Basque multinational particularly stands out, whose CEO, Ignacio Sánchez Galán, already declared last week that he did not see the future of the tax on the sector “clear”.
The company earned 5,470.7 million during the first nine months of the year, an increase of 50.4%, driven by the 1,165 million in capital gains from the sale of assets in Mexico. A figure much higher than the profits of 3.103 million recorded between January and September 2022. Iberdrola has once again improved its forecasts for 2024 in which it reports new record profits and dividends. Excluding capital gains from Mexico, its net profit amounted to 4,305.5 million, up 18.4%.
For its part, Endesa earned 1,404 million until September, or 32.6% more, compared to the profits of 1,651 million recorded during the first nine months of 2022. The subsidiary of the Italian Enel reaffirmed that it is in a comfortable situation to reach the top of the range. objectives set for 2024: close the year with a gross operating profit (Ebida) of between 4,900 and 5,200 million and an ordinary net profit of 1,600-1,700 million.
Finally, Naturgy presented this week an update of its figures, with a record profit of 1.580 million until September and a gross operating profit (Ebitda) of 4.292 million. The company did not release these numbers in 2023, when it announced it would stop reporting quarterly results.
The former Gas Natural Fenosa closed last year with a record profit of 1.986 million. Naturgy will present its new strategic plan in February 2025, as well as its 2024 results. The company has confirmed its expectations for the entire current year, higher than the market consensus, and which would exceed 5,300 million Ebitda and the 1,800 million net profit.
