...February 27, 2025 Naturgy's strategy update prioritizes investment discipline but leaves some of its long-term challenges unaddressed. On Feb. 20, 2025, Naturgy announced a 6.4 billion investment plan for 2025-2027. About half (3.2 billion) will be earmarked for gas and power networks, mostly in Spain, while 1.9 billion will fund renewable energies, including a biomethane production platform (0.8 billion). Though we are prudent about the pick-up of renewable gases, we see this as an effort to offset the contraction of natural gas grid operations in Spain, which we have identified as one of the company's key weaknesses. The rest of the investments will go toward supply and energy management activities. Overall, this represents a more than 2 billion decrease compared to our previous capital expenditure expectations, which we believe reflects a lack of profitable investment opportunities, mainly in renewable projects. Naturgy aims to increase capacity from 7.3 GW at the end of 2024 to 9.5...
