Naturgy Share Price Is Driven by Risk Arbitrage

Networks will account for about 60% of Naturgy's operating profit by 2026. Around two thirds of networks' EBIT comes from Spain. Naturgy is the global leader in Spanish gas distribution, where it has consistently achieved high profitability and returns leading the regulator to impose a sharp remuneration cut in 2021. Networks' regulated returns are higher in Latin America although high inflation and local currencies' declines have been a drag on returns in recent years.