Year 2018 has been marked by a number of key corporate events:
During the year, Naturgy has made steady progress on the development of its value creation strategy founded on four key pillars:
Throughout the year, Naturgy undertook relevant changes in its corporate governance based on a leaner structure and simpler corporate regulations, leading to a more agile decision-making process. The board of directors was reduced from 17 to 12 members, with six proprietary directors (Criteria Caixa, GIP and Rioja two each), five independent directors and the Executive Chairman.
Additionally, the company changed its organisational structure with a new reporting perimeter consisting of four main business units including: Gas & Power, Infrastructure EMEA, Infrastructure LatAm South and Infrastructure LatAm North. This has allowed Naturgy to simplify its management structure and reinforce the accountability of the different businesses. As part of this process, the company reduced the number of subsidiaries and replaced most of its subsidiary Board Directors by joint administrators, while scaling down support functions at the corporate level and reallocating some of these, based on strict functional needs, into each of the business units.
Furthermore and as part of the new strategic plan, Naturgy carried out an asset valuation review, consistent with its new Strategic plan assumptions, which translated into an impairment of Euros 4,851 million, in an effort to provide a more transparent an realistic value of its asset base. Additionally, and prior to the approval of the plan, other impairments were recorded for Euros 54 million.
During 2018, Naturgy achieved substantial progress in its optimization efforts.
In September 2018, Naturgy finalised the agreement to renew and extend its gas procurement contract with Sonatrach up to 2030 under improved terms. On the other hand, a favourable judgement was made in the ICSID in relation to Unión Fenosa’s arbitration process in Egypt.
Furthermore and as part of the new Strategic Plan, Naturgy launched a new efficiency plan targeting Euros 500 million savings in Opex by 2022. During 2018, Naturgy accelerated such program and incurred Euros 180 million capture costs which will result in a reduction of its ordinary Opex base going forward.
In 2018 the ordinary Opex base has been reduced by approximately Euros 200 million compared to 2017.
During 2018, the Company also made progress on its capital structure optimization. In this sense part of its excess cash was used to amortize all of its bank-funded corporate debt, including Euros 1,270 million denominated in euros, as well as Euros 390 million denominated in USD. Additionally, Naturgy completed Euros 333 million bond repurchases at the holdco level and refinanced/issued new debt in Latin America for an aggregate amount of approximately Euros 1,073 million, including new bond issuances of Euros 389 million and new banking debt/refinancing of Euros 684 million, consistent with its financing strategy of reducing debt at the corporate level and maximizing financing into the business units.
Naturgy is fully committed to the capital discipline and Golden Rules of investment established in its Strategic Plan 2018-2022.
Consistent with Naturgy’ s targeted growth in renewables during the Strategic Plan 2018-2022, the company continued to develop the wind and solar projects awarded last year in the Spanish auctions, investing approximately Euros 382 million during the year 2018. During 2019, the Company expects to start operating over 900 MW of additional renewable capacity.
Additionally during 2018, Global Power Generation (GPG) was awarded a 180 MW wind farm project in Australia, which will entail a total investment of AU$259 million (equivalent to approximately Euros 166 million) and is expected to contribute an Ebitda of approximately Euros 22 million once fully operational. The project, which fully complies with the investment and profitability criteria established by Naturgy in its Strategic Plan 2018-2022, allows the company to reinforce its presence in stable economies, increase the predictability of its cash flows, and raise its exposure to renewable energy sources.
Moreover, the Company acquired two solar photovoltaic projects in Minas Gerais (Brazil). The development of these projects which total 83 MW of capacity, required approximately Euros 95 million investment and came into operation in December 2018.
Finally during 2018, Naturgy completed the disposal of its businesses in Italy and Colombia, as well as the 20% minority stake in Nedgia, receiving proceeds of Euros 2,600 million in aggregate. The Company continues to progress on the various disposal processes of non-core businesses, following the business positioning criteria established in its Strategic Plan 2018-2022.
The Company has started delivering on its shareholder remuneration targets.
As part of its new Strategic Plan 2018-2022, Naturgy increased its shareholder remuneration policy. Dividends increased by 30% to Euros 1.30/share in 2018, with a 5% minimum annual increase thereafter, irrespective of operating performance. Moreover, a share buy-back program of up to Euros 400 million (in the absence of inorganic opportunities meeting the Golden Rules of investment) was started.
As part of its new shareholder remuneration policy, Naturgy completed a payment of Euros 0.28/share corresponding to the 2018 first interim dividend on 31 July 2018 and a payment of Euros 0.45/share corresponding to the 2018 second interim dividend on 31 October.
In addition, since the beginning of its Strategic Plan and until the closing of 2018, Naturgy invested Euros 121 million to buy back shares part of its planned Euros 400 million buy-back per annum until the end of June 2019.
Finally and as part of the new Strategic Plan, Naturgy set up a new long term incentive plan (LTIP) to fully align shareholders’ interests, execution of the Strategic Plan and the managers’ long term variable pay. The new LTIP is exclusively linked to total shareholders return and guarantees a full alignment of shareholders´ interests with the top managers of the company.
The following transactions were completed in 2018:
The non-ordinary items are summarized below:
|Euros million||Ebitda||Net income|
|Gas transport cost & procurement retroactivity||(50)||20||(38)||15|
|Chile non-ordinary expenses||(44)||-||(28)||-|
|Discontinued operations and non-controlling interests1||-||-||49||494|
|Chile mergers tax effect||-||-||42||116|
1. Including Euros 188 million post-tax capital gain from Italian disposal and impairments in Kangra, Moldova and Kenya for Euros 104 million, Euros 73 million and Euros 5 million respectively.
Other non-ordinary impacts include gas supply and transportation costs (Euros 50 million), non-ordinary fire prevention costs, trial and penalties in Chile (Euros 44 million) and others provisions (Euros 120 million), primarily relating to an existing litigation in process pending resolution as well as other provisions and one-off regularizations.
Exchange rate fluctuations in the period are summarized as follows:
|2018||Accumulated Average||% Change||Ebitda||Net income|
Since 1 July 2018, according to the criteria established by IAS 29 "Financial Information in Hyperinflationary Economies", the Argentine economy should be considered as hyperinflationary with retroactive effects as of 1 January 2018. The financial information presented in previous years will not be re-stated.
The inflation rates used were the domestic wholesale price index (IPIM) until 31 December 2016 and the consumer price index (CPI) as of 1 January 2017.
The main impacts as of 31 December 2018 are detailed as follows:
The accumulated effect of theaccounting restatement thatcorrects the effects of hyperinflationcorresponding to previous yearsbefore 2018 is still shown in the translation differences at thebeginning of 2018.
|2018||% s/total||2017||% s/total||% 2018/2017|
|Gas & Power||19,560||80.4||17,692||76.2||10.6|
|Gas, power and services sales||13,064||53.7||12,236||52.7||6.8|
|Europe power generation||2,050||8.4||1,935||8.3||5.9|
|International power generation||917||3.8||892||3.8||2.8|
|Spain gas networks||1,254||5.2||1,261||5.4||(0.6)|
|Spain electricity networks||855||3.5||873||3.8||(2.1)|
|Infrastructure LatAm South||5,080||20.9||5,695||24.5||(10.8)|
|Argentina gas and electricity||635||2.6||479||2.1||32.6|
|Infrastructure LatAm North||1,367||5.6||1,343||5.8||1.8|
Net sales totalled Euros 24,339 million in 2018, up 4.9% with respect to 2017, mainly driven by higher volumes and prices in the gas business.
|2018||% s/total||2017||% s/total||% 2018/2017|
|Gas & Power||1,360||33.8||980||25.1||38.8|
|Gas, power and services sales||164||4.1||49||1.3||-|
|Europe power generation||411||10.2||379||9.7||8.4|
|International power generation||289||7.2||276||7.1||4.7|
|Spain gas networks||884||22.0||888||22.8||(0.5)|
|Spain electricity networks||630||15.7||603||15.4||4.5|
|Infrastructure LatAm South||791||19.7||859||22.0||(7.9)|
|Argentina gas and electricity||118||2.9||65||1.7||81.5|
|Infrastructure LatAm North||232||5.8||273||7.0||(15.0)|
Consolidated Ebitda in the period amounted to Euros 4,019 million, 3.0% more than in 2017.
The negative effect of the evolution of the foreign exchange impact of Euros -218 million is matched basically with the positiveevolution in the Gas & Power business. Stripping out non-ordinary effects, ordinary Ebitda grew by 11.8%.
The depreciation, amortisation and impairment expenses at 31 December 2018 amounted Euros 6,007 million (Euros 1,621 million in the exercise 2017) because of the impairment of assets of Euros 4,333 million booked in the first half of the year.
Impairment of credit losses amounted Euros 179 million through the Euros 154 million of the previous year, an increase of 16.0%.
Ebit in 2018 amounted to Euros 2,167 million negative as a result of the previously discussed impairment booked in the first half of the year.
|Net debt cost||(538)||(611)||(11.9)|
|Other financial expenses/income||(147)||(87)||69.0|
The financial result improved 1.9% driven by lower rates on new issues used to refinance maturing debt or redeem bonds, and to the cancellation of bank debt compensated by the increase in other expenses due to substitutions and inflation. The average cost of gross financial debt is 3.1% (vs. 3.4% in 2017), and 87% of the debt is at fixed rates.
Equity-accounted affiliates contributed Euros -513 million in 2018 mostly as a result of the impairment of Union Fenosa Gas (Euros -538 million) and of the holding in Ecoelectrica (Euros -34 million).
The effective rate for 2018, without considering the effect of impairments and the positive tax rate of the mergers in Chile (Euros 43 million), is 21.5%, flat vs. 2017.
The Italy financial results includes Euros 188 million corresponding to the capital gains resulting from the aforementioned sale of the business.
The income of Moldova includes a write-down of Euros 73 million and the Kangra another one for Euros 141 million because of the departures procedures finished or in progress.
|Other equity instruments||(60)||(60)||-|
In other interest are included: International Power Generation, gas distribution companies in Chile, Brazil, Mexico and Argentina, and the electricity distribution companies in Chile and Panama.
In other equity instruments are included accrued interest on perpetual subordinated notes.
Net income in 2018 amounted to Euros 2,822 million negative. Ordinary net income grew to Euros 1,245 million in 2018 (Euros 793 million in 2017) that represents an increase of the 57.0%.
|Intangible and PPE investments||2,321||1,782||30.2|
|Divestments and others||(2,640)||(229)||-|
The investments in property, plant and equipment (PPE) and intangible assets amounted to Euros 2,321 million, with an increase of the 30.2% respect previous year, mainly for the increase in renewable in Spain and international level and the acquisition of two new methane tankers under a financial lease.
|Gas & Power||1,135||394||1.9|
|Gas, power and services sales||61||48||27.1|
|Europe power generation||462||178||-|
|International power generation||232||168||38.1|
|Spain gas networks||240||212||13.2|
|Spain electricity networks||228||252||(9.5)|
|Infrastructure LatAm South||459||496||(7.5)|
|Infrastructure LatAm North||183||225||(18.7)|
Maintenance Capex in 2018 amounted to Euros 683 million, compared to Euros 853 million in 2017, a 19.9% reduction driven by maintenance Capex optimization in the infrastructure businesses and rest of activities.
Growth Capex in 2018 represented over 70% of total Capex, and amounted to Euros 1,638 million, up from last year’s Euros 929 million. It mainly includes the following:
Additionally, 180 MW of wind capacity in Australia and 324 MW of wind and solar capacity in Chile will be developed before 3Q20-1Q21 respectively.
Divestments include the sale of the businesses in Italy for Euros 746 million, the proceeds from the sale of a 20% non-controlling stake in Nedgia (Euros 1,500 million) and the proceeds from the sale of the remaining 41.9% stake in the gas distribution business in Colombia (Euros 334 million).
|Ebitda/Net financial cost||veces||7.5||6.4|
|Net financial debt / Ebitda||veces||3.4||3.9|
|Net financial debt / Ebitda (IFRS 16)||veces||3.8||4.2|
|Group||Chile||Brazil||Argentina||Peru||Mexico||Panama||Holding and others|
|Net financial debt||Million euros||13,667||15,154||1,995||14||244||(34)||55||367||506||10,520|
|Average cost of gross debt||%||3.1||3.4||5.9||3.8||7.9||40.9||4.6||8.6||4.1||2.3|
|% Fixed (Gross debt)||%||87||88||72||-||-||1||-||53||59||95|
|Standard & Poor's||A-2||BBB|
At 31 December 2018, cash and cash equivalents together with available bankfinance totalled over Euros 6,950 million, providing the company with sufficient liquidity to cover its debt maturities for more than 24 months, with the following breakdown::
|Undrawn credit facilities||5,468||(234)||5,234|
|Cash and cash equivalents||-||-||1,716|
|Breakdown of working capital at 31 December||2018||2017|
|Current operating assets1||5,799||5,536|
|Current operating liabilities2||(4,468)||(4,069)|
Additionally, at 31 December 2018, the company had Euros 7,691 million available in the form of shelf registrations for financial instruments, including Euros 5,292 million in the Euro Medium Term Notes (EMTN) programme, Euros 1,000 million in the Euro Commercial Paper (ECP) programme, and a combined Euros 1,399 million in the stock market certificates programmes on the Mexico Stock Exchange, the commercial paper programme on the Panama Exchange, the marketable bonds programme in Argentina and the bond lines in Chile.
1. Without considering Euros 380 million corresponding to two LNG vessels acquired under financial leasing
The breakdown of contractual obligations, off-balance sheet transactions and contingent liabilities of Naturgy is set out in note35 to the Consolidated Annual Accounts.
This business includes wholesale gas procurement and supply in the Spanish liberalised market, the supply of gas and electricity and of other products and services related to retail supply in the Spanish liberalised market, supply of gas at the last resort tariff (TUR) in Spain and supply of electricity at the small consumer voluntary price (PVPC) in Spain.
Ebitda roses as a result of higher gas margins form higher prices and the positive impact from the new gas procurement contract agreement with Sonatrach and lower Opex.
Results (euros million)
|Net personnel expenses||(134)||(110)||21.8|
|Depreciation, amortisation and operating provisions||(139)||(97)||43.3|
|Gas sales (GWh)||237,379||237,945||(0.2)|
|Electricity sales (GWh)||35,437||35,640||(0.6)|
|Residential contracts (Spain) (thousands, at 31/12)||11,470||11,719||(2.1)|
|Number contracts per client||1.52||1.52||-|
|Market share of gas contracts||53.3||54.4||(1.2) p.p.|
Gas sales remained stable in the year 2018 driven by growth in the Spanish residential and industrial segments (up 9.3% and 3.7% respectively) which compensated for lower sales to CCGT (-17.7%) and third parties (-13.6%).
Power supply sales also remained stable vs. 2017; while margins experienced significant downward pressure during 1H18 as a result of fixed-price sales contracts set on forward prices below current pool prices, the measures taken to replace them with variable or indexed contracts allowed for margin recovery in the second half of the year..
In June 2018, Sonatrach and Naturgy strengthened their relationship by extending the contracts for the purchase of Algerian gas until the end of the next decade; their alliance ensures a stable supply of gas to Spain.
The renewal of the contracts enables Naturgy to maintain a very large volume and ensures an optimal mix of natural gas (NG) and liquefied natural gas (LNG) in its inputs.
The first shipment of LNG under the long-term contract signed with the Russian company Yamal LNG was unloaded on 21 June 2018. This is the first of a total of 37 shiploads that will reach south-western Europe each year until 2041. This contract expands Naturgy's portfolio of strategic suppliers and reinforces the diversity of supply in this region of Europe with the first long-term contract for the supply of LNG from Russia.
Demand for gas in Spain amounted to 347,539 GWh in 2018 (349,223 GWh in 2017): 55,670 GWh for the residential market (52,082 GWh in 2017), 230,286 GWh for the industrial market and for the third-party supply (221,787 GWh in 2017) and 61,583 GWh for the electricity market (75,354 GWh in 2017).
Electricity demand in mainland Spain amounted to 248,987 GWh in 2018 (248,631 GWh in 2017) an increase of 0.1% with respect to the same period of 2017 according to Red Eléctrica de España (REE) balances.
Movements in the main gas, electricity and related market price indices are as follows (annual cumulative data):
|Henry Hub (USD/MMBtu)||3||3.1||(3.2)|
|Arithmetic mean daily market price (€ /MWh)||58||53.6||8.2|
|Coal API 2 CIF (USD/t)||91.9||84.5||8.8|
|CO2 EUA (€/ton)||15.9||5.8||174.1|
This includes trading of liquefied natural gas in international markets and maritime transportation.
Ebitda in the LNG business amounted to Euros 496 million in 2018, a 79.7% increase year-on-year.
|Net personnel expenses||(23)||(21)||9.5|
|Depreciation, amortisation and operating provisions||(75)||(51)||47.1|
|Gas sales (GWh)||140,669||122,087||15.2|
|Shipping fleet capacity (m3)||1,293,040||940,440||37.5|
Includes power generation in Spain, also conventional and renewable.
Ebitda in 2018 increases an 8.4% as compared with 2017, mainly driven by lower thermal and higher hydro generation together with greater wholesale prices. These impacts were partially offset by higher CO2 prices, which reduced thermal margins, and the suspension of capacity payments for CCGTs since the month of July 2018.
Renewable generation increased by 12.5% during the period, while hydro production saw a 3.0-fold rise, thus reducing the overall thermal production by 8.8%, most notably coal, which was directly impacted by rising costs.
Naturgy continues to increase its renewable exposure through the development of its 667 MW of wind and 250 MW of solar projects awarded in the Spanish auctions. As such, the capacity into operation at year-end 2018 has reached 1,179 MW.
|Net personnel expenses||(140)||(147)||(4.8)|
|Depreciation, amortisation and operating provisions||(4,279)||(442)||-|
|Installed capacity (MW)||12,504||12,715||(1.7)|
|Renewable and cogeneration output||1,179||1,147||2.8|
|Cogeneration and other||58||58||(36.8)|
|Electric energy produced (GWh)||28,307||27,953||1.3|
|Renewable and cogeneration output||2,571||2,285||12.5|
|Cogeneration and other||64||77||(17.1)|
|Market share of generation||17.4||17.1||0.3 pp|
(solar projects awarded in the Spanish auctions)
This area encompasses the international generation assets and holdings in Brazil (commercial operation in September 2017), Mexico, Puerto Rico, Dominican Republic, Panama and Costa Rica and the power generation projects in Australia and Chile, as well as assets operated for third parties via group company O&M Energy.
Ebitda for 2018 amounts to Euros 289 million, with a 4.7% increase. Growth was supported by the start of the Sobral I and Sertao I solar farms in Brazil from September 2017, together with better margins of excess energy sales in Mexico, and higher wind resource. The above were partially offset by a negative evolution of exchange rates vs. previous year.
|Net personnel expenses||(39)||(37)||5.4|
|Depreciation, amortisation and operating provisions||(152)||(121)||25.6|
|2018||2017||Change (%)||FX||Adjusted change (%)|
|Installed capacity (MW):||3,093||2,732||13.2|
|Costa Rica (hydroelectric)||101||101||-|
|Dominican Republic (oil-fired)||198||198||-|
|Electric energy produced (GWh)||18,351||18,436||(0.5)|
|Costa Rica (hydroelectric)||330||369||(10.6)|
|Dominican Republic (oil-fired)||1,092||925||18.1|
|Availability factor (%)|
|Costa Rica (hydroelectric)||93.5||97.5||(4.0)|
|Dominican Republic (oil-fired)||90.2||92.1||(1.9)|
Naturgy, through subsidiary Global Power Generation (GPG), acquired two solar photovoltaic projects in Brazil in March 2018 with a total capacity of 83 MW, which entered commercial operation on 12 December 2018.
Also, in November 2018, the wind farm Crookwell II entered into commercial operation in Australia.
This area includes remunerated gas distribution and transportation as well activities that are charged for outside the regulated distribution system (meter rental, customer connections, etc.), and the piped liquefied petroleum gas (LPG) business.
Ebitda in 2018 decreases 0.5% amounting to Euros 884 million driven by the demand growth and good operating performance, lower Opex coming from efficiency improvements which were sufficient to compensate for the impact of lower meter rental revenues (Euros -40 million) and, to a lesser extent, lower LPG margins.
|Net personnel expenses||(118)||(94)||25.5|
|Depreciation, amortisation and operating provisions||(320)||(307)||4.2|
|Sales – TPA (GWh)||197,313||195,586||0.9|
|Distribution network (km)||56,124||53,369||5.2|
|Increase in connection points (thousands)||31||58||(46.0)|
|Connection points (thousands) (at 31/12)||5,403||5,371||0.6|
The electricity distribution business in Spain includes regulated distribution of electricity and network services for customers, basically connections and hook-ups, metering and other actions associated with third-party access to Naturgy's distribution network.
Ebitda for the year amounts to Euros 630 million. Opex savings due to the application of efficiency plans have been compensated with lower asset remuneration.
|Net personnel expenses||(94)||(130)||(27.7)|
|Depreciation, amortisation and operating provisions||(252)||(233)||8.2|
|Sales – TPA (GWh)||32,698||32,039||2.1|
|Connection points (thousands) (at 31/12)||3,740||3,721||0.5|
This area refers to operation of the Maghreb-Europe gas pipeline.
Ebitda for 2018 increased by 3.2% due to the tariff increase and volume growth, making up for the negative impact of the US Dollar devaluation relative to the Euro (Euros -14 million).
|Net personnel expenses||(6)||(6)||-|
|Depreciation, amortisation and operating provisions||(44)||(38)||15.8|
|Gas transport-EMPL (GWh):||117,526||100,371||17.1|
This refers to the regulated gas distribution business in Argentina, Brazil, Chile and Peru and the electricity distribution in Argentina and Chile. In Chile also includes the gas supply activity and the electricity transmission activity.
Ebitda increases by 134.8% over the same period in previous year supported by the final application of the new tariff framework and demand increase, which more than offset the negative Euros 107 million FX impact.
The application of IAS29 had a positive Euros 10 million impact in Ebitda.
Since April 2018 the Argentinian economy has undergone a number of changes in macroeconomic conditions that caused a sharp alteration in parity between the Argentinian peso and the US dollar, changing the economic circumstances taken into account in the Bases and Conditions and reflected in contracts with gas producers. This increase in the exchange rate (not recognised in the current Tariff Table) meant that producers had to be paid a gas price that far exceeded the price that could be passed on via tariffs.
Finally, under Decree 1053/2018 of November 2018 the National Government assumed the payment, on an exceptional basis, of the daily differences accumulated monthly between the value of gas bought by the network natural gas distribution service provides and the value of natural gas included in the tariff tables in effect between 1 April 2018 and 31 March 2019, generated solely by fluctuations
in the exchange rate and relating to volumes of natural gas delivered during that period, thereby clearing up the doubts caused by the Government Energy Secretariat Resolution 41/2018.
|Net personnel expenses||(15)||(29)||(48.3)|
|Depreciation, amortisation and operating provisions||(15)||(10)||50.0|
|Gas activity sales (GWh)||76,287||72,084||5.8|
|Distribution network (km)||26,179||25,865||1.2|
|Increase in connection points (thousands)||14||19||(26.5)|
|Connection points (thousands) (at 31/12)||1,665||1,651||0.8|
Ebitda decreased 20.9% on the back of lower demand and a negative FX effect (Euros -46 million).
The absence of negative retroactive tariff adjustments present in previous periods (Euros +15 million) and the higher sales in the automotive gas segment were offset by lower sales in the power generation and industrial segments as a result of lower thermal power plant utilization and production adjustments due to the macroeconomic situation.
|Net personnel expenses||(31)||(42)||(26.2)|
|Depreciation, amortisation and operating provisions||(75)||(69)||8.7|
|Gas activity sales (GWh)||72,079||89,080||(19.1)|
|Distribution network (km)||7,678||7,536||1.9|
|Increase in connection points (thousands)||27||53||(49.9)|
|Connection points (thousands) (at 31/12)||1,116||1,090||2.4|
2018 Ebitda reached Euros 243 million, with a 17.1% decrease mainly as a result of lower revenues from prior years’ regularizations and other demand impacts, as well as a negative Euros 10 million FX impact.
|Net personnel expenses||(128)||(131)||(2.3)|
|Depreciation, amortisation and operating provisions||(166)||(152)||9.2|
|Electricity activity sales (GWh)||15,082||14,573||3.5|
|Connection points (thousands) (at 31/12)||2,928||2,857||2.5|
|Electricity transmitted (GWh)||14,636||14,403||1.6|
|Transmission network (km, at 31/12)||3,528||3,528||-|
Ebitda decreases by 5.4% respect to previous year, with a negative Euros 8 million FX impact.
In addition, the decrease in residential and commercial demand was offset by higher sales to other segments and higher unitary margins in the residential and commercial segments.
|Net personnel expenses||(29)||(28)||3.6|
|Depreciation, amortisation and operating provisions||(57)||(49)||16.3|
|Gas distribution sales (GWh)||10,957||10,933||0.2|
|Gas commercialization sales (GWh)||4,761||5,192||(8.3)|
|Distribution network (km)||7,557||7,211||4.8|
|Increase in connection points (thousands)||24||18||31.3|
|Connection points (thousands) (at 31/12)||626||602||3.9|
This refers to the regulated gas distribution business in Mexico and the electricity distribution business in Panama.
The positive evolution of the business, driven by a higher tariff indexation, together with growth in supply sales margins was not sufficient to compensate for the negative FX impact of Euros 11 million and from higher Opex as a result of a commercial repositioning.
|Net personnel expenses||(28)||(26)||7.7|
|Depreciation, amortisation and operating provisions||(79)||(56)||41.1|
|Gas activity sales (GWh)||58,178||57,617||1.0|
|Distribution network (km)||22,461||21,940||2.4|
|Increase in connection points (thousands)||23||115||(80.4)|
|Connection points (thousands) (at 31/12)||1,796||1,773||1.3|
Ebitda in 2018 decreases by 31.7% affected by milder weather and a Euros 5 million negative FX impact which was partly compensated by growth in connection points.
|Net personnel expenses||(13)||(13)||-|
|Depreciation, amortisation and operating provisions||(39)||(37)||5.4|
|Electricity sales (GWh):||5,178||5,107||1.4|
|Connection points (thousands) (at 31/12)||669||641||4.2|
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