Gas Natural, Inc. (EGAS) Q1 2012 Earnings Call May 08, 2012 PM ET Executives Rafael Villaseca – CEO Analysts Manuel Palomo – Citigroup Fernando Garcia – Espirito Santo Avinash Kant – D.A. Davidson & Co Andrew Abrams – Avian Securities Alberto Gandolfi – UBS Carolina Dores – Morgan Stanley Presentation Operator
Previous Statements by EGAS
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I would like to also underline the shareholder remuneration policy which was approved by the AGM which is in line with the strategic plan objectives and will mean a payout of 62%. As you know was approved by the AGM and a yield per dividend of 6.2% which means that the interim dividend pay will be 360 and then there will be a script of 461 script dividend and this was done last year and it was very successful.If we go into one of the most notable areas which is the growth of international operations, I would like to tell you from these charts that first of all the international activities of the company, generally had 42% of EBITDA. Not just that but at the end of the day that 42% EBITDA internationally grew as regards the previous year by more than 32% which is what we wanted and our policy was based on Latin American operations and especially all international operations on the natural gas market. So this continues to have weight. International activities have a lot of weight in our mix and is in line with our strategy and that's one of the cases of our success. Within international activities, I would like to highlight international gas sales which have grown really very spectacularly or quite spectacularly. We're one of the most important payers on the liquid gas market, that is part of our strategy, has been for a long time and we are still firmly supporting it. In our first quarter our sales to international customers has gone up by 44%. It's interesting to see that they've grown very strongly in Europe, 64% and in the rest of the world by about 34%. Success in Europe has to do with the setting up of commercial agencies of our own reaching out to customers short and medium term strategies, the strengthening of growth in Europe. And we have to point out here as regards to international operations, two operations that we've finalized this year.
One is in Paris, Eau de France; we've got practically half of the market that came out. That was put on sale on offer. A 1,000 gigawatt hour yearly. It’s a contract which guarantees a significant amount, critical masses to allow us to operate in such an important market as Paris.The second project you know is a supply contract, two BCMs in Puerto Rico where we have quite a significant presence with our regasification plant and our combined cycle plant. Mono increased through two BCMs for the gasification of the island. That's had to do with the policy that I referred to later which is a policy of flexibility in the procurement portfolio, support of logistics, expansion in new markets in activities with final customers and all this means that almost 30% of the gas that we sell, we sell on the international markets so we continue to be one of the most important players in this line of business which we'll show continue most positively in the future. We've also got to underline in South America, the gas distribution has been positive, the EBITDA has grown by 3.5%. Sales 1.7% in spite the fact that in some countries due to very special reasons, the year hasn’t been so good. The new customers grown by 4% with a generalized growth throughout the area the region, especially Mexico where we we're approaching 5% with a star project of gasification of the capital city Mexico. So EBITDA as I said 146 million has grown by 3.5%. Read the rest of this transcript for free on seekingalpha.com