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John R Hampton

Corporate Arrogance Or Incompetence?

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Recent delivery interruptions from Fenosa and Cable Onda show a disregard for paying customers offering no prior warnings or post explanations and with no apparent consequences from regulating authorities.

 

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Didja consider the possibility of both rather than or?

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Continuing to reward mediocre performance is a surefire way for organizations to remain "emerging" and if dealing with near-monopolies lower the standards a few more notches.

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Interesting.
07/26/2018 | 09:42am CET

By Alberto Delclaux

Naturgy Energy Group SA (NTGY.MC) said Thursday that it slid to a loss in the second quarter, due to the impairment of assets, even though sales increased.

The Spanish company, previously known as Gas Natural, recorded a loss of 3.60 billion euros ($4.21 billion) in the period compared with a net profit of EUR252 million a year earlier. Net sales rose 5.3% to EUR5.79 billion, due to higher volumes and prices in the gas business, Naturgy said.

Earnings before interest, taxes, depreciation and amortization fell 5.4% to EUR951 million, under analyst expectations of EUR1.04 billion, according to FactSet.

Naturgy's results were affected by the impairment of assets amounting to about EUR4.9 billion, mainly related to conventional-generation assets in Spain, as announced during the presentation of its strategic plan in late June.

Write to Alberto Delclaux at alberto.delclaux@dowjones.com

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Can someone please explain to me what "impairment of assets" and "conventional-generation assets" mean? I have never heard these terms before.

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Bonnie,

(From Investopedia) -

An impaired asset is a company's asset that has a market price less than the value listed on the company's balance sheet. Accounts that are likely to be written down are the company's goodwill, accounts receivable and long-term assets because the carrying value has a longer span of time for impairment. Upon adjusting an impaired asset’s carrying value, the loss is recognized on the company’s income statement.

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"Conventional Generation"  means an asset using conventional methods to generate electricity,  i.e gas or coal


 

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16 hours ago, John R Hampton said: %3 generate electricity,  i.e gas or coal

 

Thank you, John.

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