2018 Corporate Responsibility Report
Español Català
Proposed actions 2018   Planned actions 2019
Hosting of an Investor Day with the financial community to launch the Strategic Plan 2018–2022.  
Extension of activities with minority shareholders in A Coruña and Valencia.  
Improvements to the economic- financial information on the website based on best practices.  
Maintaining a presence on sustainability indices. Maintaining a presence on sustainability indices.
Level of fulfilment:
Finalised Major progress Intermediate progress Little progress Not started

Focus on growing and sustained profitability

Overall results

Net turnover Net turnover for 2018 amounted to Euros 24.339 billion, an increase of 4.9% in comparison with the previous year.
Ebitda performance

Ebitda in 2018 reached Euros 4.019 billion including non-core items. Without considering these last figures, ordinary Ebitda grew by 11.8% to Euros 4.413 billion, mainly supported by the improvement in the gas and electricity business and the stability of infrastructure business; all this has allowed us to more than offset the negative effect of exchange rates.

The net result of 2018 was a loss of Euros 2.822 billion, mainly as a result of the asset impairment of Euros 4.905 billion carried out in the first half of the year. Excluding this impact and other non-core items, ordinary net income increased 59.1% to Euros 1.245 billion due to higher activity, lower amortisation and lower financial expenses resulting from optimising the Group’s debt.

Debt ratio At 31 December 2018, net debt totalled Euros 13.667 billion, down 9.8% year-on-year. The fall in net debt/Ebitda to 3.4x from 3.9x in 2017, coupled with the improvement in Ebitda/cost of net financial debt to 7.5x from 6.4x at the end of last year, shows the strengthening of the company’s financial solidity in 2018.
Cash flow Cash flow after minority interests increased from Euros 746 million to Euros 3.054 billion, reflecting the company’s greater focus on cash generation and the completion of several sales processes during the period.
Completed transactions
  • Sale of the remaining 41.9% of the gas distribution business in Colombia for Euros 334 million, equal to its book value, net of dividends received, with no impact on the consolidated profit and loss statement.
  • Sale of the gas distribution and commercialisation business in Italy, together with the sale of the gas supply contract, for Euros 766 million, generating a capital gain of Euros 188 million after taxes.
  • Sale of a minority stake of 20% in the natural gas distribution business in Spain (Nedgia) for an amount of Euros 1.5 billion, which resulted in an increase of Euros 1.016 billion equity in the consolidated balance sheet.


Tangible and intangible investments for 2018 reached Euros 2.321 billion, an increase of 30.2% year-on-year, due to the increase in investment in renewables both in Spain and on the international stage, and the acquisition of two new methane tankers under a financial lease.

The maintenance Capex in 2018 amounts to Euros 683 million vs. Euros 853 million in 2017, a decrease of 19.9% as a result of the maintenance Capex optimisation in the infrastructure business and other activities.

The growth Capex in 2018 represents 70% of the total Capex and amounts to Euros 1,638 million vs. 929 million in 2017. Basically it includes:

  • Euros 380 million corresponding to the acquisition of methane tankers.
  • Euros 382 million invested in the development of different renewable projects in Spain (wind and solar) with 32.6 MW put into operation in 2018 in the Canary Islands and another 929 MW that are expected to come into operation before 2020.
  • Euros 106 million related to the acquisition and development of solar projects in Brazil of 85 MW that have come into operation in the fourth quarter of 2018.
  • Euros 75 million targeted at the development of 96 MW of wind capacity in Australia that came into operation in the fourth quarter of 2018.

In addition, the award of 180 MW has been achieved in a wind farm project in Australia and 324 MW of wind and solar energy in Chile that will be developed in the third quarter of 2020 and the first quarter of 2021, respectively.

Stock market performance and profitability

As regards the company’s stock market performance, the Naturgy shares closed 2018 at a price of Euros 22.26 and stock market capitalisation of Euros 22.275 billion, which represents a 15.6% increase versus the previous year end. This evolution stands out against the annual decline experienced by the Ibex 35, the main index of the Spanish stock market, of 15%.

Stock market indicators [102-7]
2018 2017 2016
No. of shareholders (in thousands) 73 79 82
Share prices at 31/12 (euros) 22,26 19,25 17,91
Earnings per share (euros) (2,83) 1,36 1,35
Share capital (No. of shares) 1.000.689.341 1.000.689.341 1.000.689.341
Stock market capitalisation (euros million) 22.275 19.263 17.922
Financial ratios
2018 2017 2016
Debt(1) 48,4% 45,3% 44,8%
Ebitda/Net financial debt cost 7,5x 6,4x 6,3x
Net debt/Ebitda 3,4x 3,9x 3,3x
(1) Net financial debt/Net financial debt + Equity.
Net result consolidated (euros million)
2018 2017 2016
Net profit of Naturgy (2.822) 1.360 1.347

Communication channels adapted to the needs of shareholders and investors

Naturgy has its own communication channels that allow it to offer the best service under a criterion of homogeneity, simultaneity and diligence.

The company provides shareholders with specialised financial reporting through informative meetings and the corporate website. In addition, it invites them to corporate and cultural visits, and places at their disposal the shareholder’s office and the shareholder’s club, meeting points and services for minority investors.

The company also continued its communication programme with analysts and investors, in order to strengthen and provide more transparent economic-financial information to enable them to monitor Naturgy’s business project. Along this line, during 2018, representatives of the company’s management team and the Investor Relations Unit held 523 meetings with institutional investors.

Communication channel indicators
2018 2017 2016
Meetings with shareholders and analysts 523 589 520

Sustainable financing and investor activities that take ESG criteria into account

Since 2012, Naturgy has held meetings with investors that take ESG criteria into account. Throughout 2018, the company has continued with that activity and took part in the conference organised by Société Générale in Paris on 14 November in which there were meetings with Sycomore asset management, Axa investment, ODDO-BHF, Société Générale CIB, Amundi asset management and M&G Investments.

Throughout 2017, and in line with its sustainability commitment, Naturgy introduced a framework for the emission of green bonds targeted at financing renewable energies. In 2018, the Green Bonds Committee of Naturgy met to assess the suitability and progress of projects as well as the adaptation of their developments to the targets set out in the bond issue. The green bond was approved by the Oekom rating agency, obtaining a B+ rating.

In addition, and in order to cover its financing needs, in 2017 Naturgy signed a sustainable loan partially pegged to the company’s environmental, social and corporate governance behaviour. In the first credit review mentioned, and thanks to the improved score given by this agency, the financing conditions were improved with a lowering of the interest rate.

Inclusion in socially responsible investment indices

The company’s performance in these matters has allowed it to position itself in benchmark positions in the main sustainability indices that Naturgy has been part of. This includes the Dow Jones Sustainability Index for 14 years without interruption, and in 2018, Naturgy achieved worldwide leadership in the Gas Utilities sector for the second year in a row. In the same way, the company has belonged to the FTSE4GOOD since its creation in 2001, obtaining the global leadership of the Multiutilities sector. Also, during 2018 Naturgy has been evaluated by rating agencies such as Oekom, Sustainalytics and Vigeo. The company is part of three variants of Euronext Vigeo; World 120, Europe 120 and Eurozone 120. Naturgy has also obtained the highest rating, AAA, from the MSCI rating agency and is part of the MSCI Global Climate Index and the MSCI ESG Leaders Index.

In 2018, Naturgy has been recognised as a world leader for its action against climate change, as it is included in The Climate Change A List index of the Carbon Disclosure Project (CDP). The company has obtained the highest possible score in this climate change index, in recognition of its actions to reduce emissions, mitigate climate risks and develop a low carbon economy.

The presence of Naturgy on these three prestigious indices highlights the efforts made by the company in areas of corporate responsibility and transparent reporting, and represents external recognition of its excellent evolution in these fields.

Evolution of Naturgy and sector average on DJSI (scale from 0 to 100)

Sector average.
NB: the decrease in figures in 2018 is due to the methodology change of the index.

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