Francisco Reynés, the chairman and chief executive of Naturgy, outlined a cautious forecast for 2023 even as the energy company eyes another year of steady profit. He noted that rising fuel costs, influenced in part by global events, would shape the market landscape. The board, meeting in Madrid, re-elected Reynés to lead Naturgy for another four years as the company enters a new phase of governance after his return to leadership in 2018. This transition emphasizes continuity in strategy while reinforcing commitments to growth and stability across the business.
Reynés described a “moderate” growth path. The expansion would hinge on strengthening the network business within Spain, supported by ongoing investments in infrastructure, digitalization, and efficiency programs. Latin American markets were cited as showing a delayed but growing demand, with the company adapting its approach to local conditions. Internally, leadership discussed a plan to stabilize gas supply amid market fluctuations, focusing on proactive measures and rapid response to evolving needs. There was a sense of strategic pacing, with certain long-term initiatives kept in mind, even though not all details were aired in the public briefing.
On energy pricing, Reynés stressed that it was premature to offer firm projections for the coming months. He highlighted the volatility and uncertainty the sector faces, noting that futures markets for gas, oil, and electricity can shift daily. Naturgy affirmed its readiness to adjust and respond as conditions change, maintaining a disciplined optimization of the portfolio to safeguard liquidity and growth opportunities.
The company has built a solid liquidity position, enabling continued investment across projects while pursuing new opportunities. Executives emphasized that capital allocation would prioritize three axes: sustainable investment, a return to shareholders, and social contributions. The aim is to use surplus resources to reduce debt and strengthen the balance sheet, ensuring resilience against market shocks.
Energy Poverty and Customer Concerns
During the shareholder meeting, the topic of energy poverty received particular attention. One investor proposed canceling outstanding debts for the most vulnerable families unable to cover electricity and gas bills, while ensuring uninterrupted supply amid temporary protections implemented by the government in response to the pandemic. Naturgy reiterated its commitment to addressing energy poverty but did not provide a direct legal remedy during the discussion.
A second question raised by a shareholder focused on service disruptions in parts of the Canadian and wider power networks since the autumn of 2020. The company explained that only a small number of customers in a sub-sector were affected by a fault in the network, with the issue traceable to technical constraints coordinated with the transmission operator. The importance of avoiding supply interruptions was underscored, with the response highlighting the need to align consumption with contracted limits and the protections in place for consumers.
A former customer, who cited a low monthly income, raised concerns about perceived improper handling of energy rights and access to essential services. Reynés responded by expressing understanding and asserting that Naturgy operates with a human-centered approach, stressing that the company values all customers and will strive to ensure fair access to energy for everyone. The remarks underscored the ongoing social responsibilities that accompany a large energy utility, reinforcing the commitment to affordable and reliable energy as a core priority for the organization.