NTGY.MC - Naturgy Energy Group, S.A.

MCE - MCE Delayed Price. Currency in EUR
-0.50 (-2.25%)
At close: 5:35PM CET
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Previous Close22.25
Bid21.80 x 0
Ask21.81 x 0
Day's Range21.60 - 22.26
52 Week Range21.60 - 27.11
Avg. Volume1,186,201
Market Cap21.1B
Beta (5Y Monthly)0.70
PE Ratio (TTM)15.21
EPS (TTM)1.43
Earnings DateApr 29, 2020
Forward Dividend & Yield1.79 (8.03%)
Ex-Dividend DateNov 08, 2019
1y Target EstN/A
  • LNG Cargoes Canceled as Virus Compounds U.S. Export Glut

    LNG Cargoes Canceled as Virus Compounds U.S. Export Glut

    (Bloomberg) -- A buyer of liquefied natural gas has canceled two cargoes from Cheniere Energy Inc., the biggest U.S. exporter, as a global glut pummels prices for the fuel and threatens to shut a key outlet for shale production.Spanish utility owner Naturgy Energy Group SA has decided not to take delivery of two shipments from Cheniere, according to people with direct knowledge of the matter. The cargoes, one of which was scheduled for April delivery, were rejected by Naturgy’s clients Repsol SA and Endesa SA, who had originally purchased the volumes from Naturgy and will now pay a contractual fixed fee, the people said.Cancellations of U.S. cargoes were closely watched and highly anticipated amid a grim outlook on global prices. It could be an early sign that global oversupply is poised to hammer the U.S. gas market, which is already straining under the weight of a domestic glut. Prices in Europe and Asia collapsed as storage levels rose during a mild winter, making it tougher for LNG buyers to make a profit reselling U.S. cargoes abroad.The coronavirus outbreak in China is stifling LNG demand from the world’s fastest-growing importer. While the Asian nation hasn’t directly imported any U.S. cargoes in more than a year amid trade tensions, the virus has contributed to the global price rout.The virus has wreaked havoc on commodity markets from LNG to copper while disrupting global industrial production, travel and supply chains. As Chinese demand for the fuel declined, PetroChina Co. is said to have delayed discharge of multiple cargoes. Qatar and the world’s biggest LNG trader, Royal Dutch Shell Plc, said they’re working with customers to reschedule or reroute deliveries. While lower prices are opening up demand in places such as India and Turkey, they’re also testing Europe’s ability to absorb extra supply in a weak market.“We are seeing supply reduction before demand maximization in Northwest Europe,” said Verena Viskovic, an analyst at BloombergNEF. Even with European benchmark Title Transfer Facility prices crashing more than a fifth since the start of the year, those TTF levels still “are not low enough to fully maximize lignite-to-gas switching,” she said.At current forward prices of U.S. and European gas, the profit margins of delivering U.S. LNG to Europe and to Asia are thin, according to a BloombergNEF note this week. Exporters of U.S. LNG may be forced to keep gas at home during the next seven months despite the potential demand in the German power sector.At least two Japanese buyers are also considering canceling cargoes from the U.S. that they had expected to load before summer, according to traders with knowledge of the matter, adding that no final decisions have been made.LNG exports have been a relief valve for U.S. gas producers as output from shale basins soars to record highs. In the Permian Basin of West Texas and New Mexico, where gas is extracted as a byproduct of oil drilling, prices have slid below zero amid pipeline bottlenecks; that means producers are paying others to take their supply.More gas-fired power plants would have to be built in the U.S. and abroad to ease the current supply glut, said Campbell Faulkner, chief data analyst for commodities broker OTC Global Holdings.“Prices globally are converging and until there is a boatload of new generation built domestically and abroad, there is just simply not much room in the market” for more gas, he said. LNG, once vaunted as a savior for the U.S. gas market, “looks to be a damp squib,” he said.Cheniere, while declining to comment on specific commercial arrangements, said the flexibility its contracts provide is appreciated by customers and that the fixed-fee portion of the agreements ensures cash flow to the company even when a delivery is suspended. Naturgy and Repsol declined to comment.Endesa confirmed the cancellation of the cargo, which was scheduled for delivery in May. The measure is part of normal trading business and no fine would be required as the decision complied with the cancellation period in the contract, a spokesman said.Customers of the American exporter have to pay a fixed so-called tolling fee to reserve capacity, whether or not they take the LNG. Contracts give buyers an option not to lift cargoes, but they need to notify the exporter 45 to 60 days before the delivery date and pay their fee.The canceled cargoes were to be loaded from Cheniere’s Corpus Christi facility in Texas, the people said. Naturgy has 20-year contracts with both of the exporter’s plants, Corpus Christi and Sabine Pass in Louisiana. According to an earlier presentation by Cheniere, the fixed fee was set at $3.50 per MMBtu for the Corpus Christi contract and $2.49/MMBtu for the Sabine Pass deal.Naturgy has sold volumes from Cheniere to its own clients in advance, the people said.“The market seems to be overreacting to the perceived contract risk to established LNG companies like Cheniere, who signed very favorable contracts when the market was short gas in the early 2010s,” Katie Bays, co-founder of Washington-based Sandhill Strategy LLC, said in a message.(Updates with Endesa comment in 13th paragraph, Naturgy contract details in the 14th)\--With assistance from Stephen Stapczynski and Rodrigo Orihuela.To contact the reporters on this story: Anna Shiryaevskaya in London at ashiryaevska@bloomberg.net;Naureen S. Malik in New York at nmalik28@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Jonathan Tirone, Andrew ReiersonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Tread With Caution Around Naturgy Energy Group, S.A.'s (BME:NTGY) 5.6% Dividend Yield
    Simply Wall St.

    Tread With Caution Around Naturgy Energy Group, S.A.'s (BME:NTGY) 5.6% Dividend Yield

    Is Naturgy Energy Group, S.A. (BME:NTGY) a good dividend stock? How can we tell? Dividend paying companies with...

  • Are Naturgy Energy Group, S.A.’s (BME:NTGY) High Returns Really That Great?
    Simply Wall St.

    Are Naturgy Energy Group, S.A.’s (BME:NTGY) High Returns Really That Great?

    Today we'll evaluate Naturgy Energy Group, S.A. (BME:NTGY) to determine whether it could have potential as an...

  • Should Naturgy Energy Group (BME:NTGY) Be Disappointed With Their 47% Profit?
    Simply Wall St.

    Should Naturgy Energy Group (BME:NTGY) Be Disappointed With Their 47% Profit?

    By buying an index fund, investors can approximate the average market return. But if you pick the right individual...

  • PR Newswire

    Naturgy and Sonatrach Have Entered into an Agreement With Mubadala for the Acquisition of Its Stake in Medgaz, Which Will Become Jointly Controlled by Them Upon Completion of the Transaction

    Naturgy transforms its current 14.95% financial stake in Medgaz into a strategic stake which will allow the joint control of the Company together with Sonatrach. Naturgy will acquire 34.05% of Medgaz for 445 million euros through an SPV which can be opened to a financial partner. A highly attractive transaction for Naturgy, due to both its sound strategic rationale and the financial terms achieved, in an asset with stable, low risk and predictable long-term income and dividends.

  • Reuters

    Brazil plan to open gas sector seen luring Naturgy, Engie, others

    Recently announced plans to foster competition in the Brazilian natural gas market may trigger a wave of privatizations among state-controlled distribution companies, luring international and domestic bidders, experts on the sector say. Brazil's Cosan SA and Spain's Naturgy Energy Group SA, are among the companies potentially interested in the segment, which also include Portugal's Galp , France's Engie and Spain's Repsol , consultants, lawyers and other experts said. The plan to overhaul Brazil's domestic natural gas market, approved by Brazil's energy policy council in late June, calls for companies with a "dominant position" to sell all of their stakes in distributors.

  • Reuters

    European buyers of U.S. gas bristle at terms

    As European and U.S. officials praise the soaring trade of liquefied natural gas (LNG) between the regions, a pillar of U.S. President Donald Trump's drive for American "energy dominance", some buyers are bristling at the terms. Trading executives at French, German and Spanish utilities said accelerating U.S. LNG production undoubtedly added liquidity and transparency to the growing global market. Spain's Naturgy, the second largest buyer of U.S. LNG having signed deals years ago when LNG exports were just being conceived, says future contracts must change as the buyer has been taking on both volume and pricing risk.

  • Reuters

    Power firms agree on route to close Spain's oldest nuclear plant

    Spain's main electricity providers have reached an agreement to renew the life of the country's oldest nuclear plant until its planned closure, the company operating the site said on Friday. The Almaraz plant in Western Spain hosts the first two nuclear reactors slated for closure in a calendar which foresees all seven in the country going offline between 2027 and 2035. Phasing out nuclear power, which provides about a fifth of Spain's electricity, is part of a package of energy market proposals that was one of the last initiatives of the Socialist government before parliament was dissolved before a general election next month.