Description
SWOT ANALYSIS OF GAS NATURAL GROUP
Gas Natural Group
Parent Company
Gas Natural Group
Category
Natural Gas Utilities
Sector
Energy
Tagline/ Slogan
170 years together
The largest integrated gas and electricity company in Spain and Latin USP America STP
Segment
Enterprises and individuals with energy requirements
Target Group
Entities which require gas, hydrocarbons and electricity
A natural gas company engaged in operating local distribution companies in seven states and serving approximately 73,000 Positioning customers SWOT Analysis
1. It is a leading gas supplier in Spain and Latin America enables it to take advantage of its large scale of operations, which adds to its bargaining power 2. Its diverse electricity generating facilities from energy sources such as hydroelectric, nuclear, coal, oil/gas, CCGT (combined cycle gas turbine), and renewables have enabled it to maintain its overall power generation levels in all climatic conditions and offers it a competitive edge over other players who depend on one source for energy development 3. Its presence across the entire energy value chain provides it with many opportunities to optimize its business while minimizing business risks Strength 4. Its steady growth in revenue performance over the years shows its robust financial position and makes it a lucrative investing destination
5. Its vast geographical presence (in nearly 25 countries) coupled with its huge employee base of nearly 17,000 gives it an edge over competitors
1. Geographical concentration of its operations, especially in Spain puts it at a competitive disadvantage against competitors with a better-diversified geographic profile 2. Obligations regarding long term gas purchase contracts which requires it to pay even if it does not use the gas in its operations could have an adverse significant impact on the operating costs 3. Its declining generation capacities as seen from its recent results Weakness can lead to reduction in its profitability and operations
1. Strategic acquisitions, agreements and contracts (with DEPA, a Greek company; GAIL, Tranvia De Murcia, Societe Nationale pour la Recherche, Sonatrach, Sonelgaz, Iberdrola Ingenieria and the Portuguese company Transgas Armanzenagem) will increase its market presence and also help the company to better compete with its peers 2. Planned investments in its high performing assets will help the company increase its customers and meet any increase in the demand for natural gas in the region 3. Its strong focus on R&D and its smart grid deployment gives it a competitive advantage against its competitors 4. The global energy demand outlook, boosted by increasing demand for oil, gas and electricity across the world can be used by it to Opportunity leverage its position
1. Its operations are subject to extensive federal, state and local environmental regulatory requirements, which can increase its compliance costs and impact its profit margins adversely 2. It is subject to risks inherent in the electricity sector whose evolution carries certain risks for any electric utility, which could negatively impact its business 3. A major portion of its operating expenses are linked to the purchase of gas for supplies or for the energy production of its combined cycle plants which exposes it to the variation in commodity prices that are determined based mainly on crude oil prices and oil derivatives 4. Operational risks pertaining to its businesses, leading to loss of life Threats and property can adversely impact its profitability
Competition
1. BG Group Plc 2. Centrica 3. Iberdrola Competitors 4. Distrigas SA
doc_834019202.docx
SWOT ANALYSIS OF GAS NATURAL GROUP
Gas Natural Group
Parent Company
Gas Natural Group
Category
Natural Gas Utilities
Sector
Energy
Tagline/ Slogan
170 years together
The largest integrated gas and electricity company in Spain and Latin USP America STP
Segment
Enterprises and individuals with energy requirements
Target Group
Entities which require gas, hydrocarbons and electricity
A natural gas company engaged in operating local distribution companies in seven states and serving approximately 73,000 Positioning customers SWOT Analysis
1. It is a leading gas supplier in Spain and Latin America enables it to take advantage of its large scale of operations, which adds to its bargaining power 2. Its diverse electricity generating facilities from energy sources such as hydroelectric, nuclear, coal, oil/gas, CCGT (combined cycle gas turbine), and renewables have enabled it to maintain its overall power generation levels in all climatic conditions and offers it a competitive edge over other players who depend on one source for energy development 3. Its presence across the entire energy value chain provides it with many opportunities to optimize its business while minimizing business risks Strength 4. Its steady growth in revenue performance over the years shows its robust financial position and makes it a lucrative investing destination
5. Its vast geographical presence (in nearly 25 countries) coupled with its huge employee base of nearly 17,000 gives it an edge over competitors
1. Geographical concentration of its operations, especially in Spain puts it at a competitive disadvantage against competitors with a better-diversified geographic profile 2. Obligations regarding long term gas purchase contracts which requires it to pay even if it does not use the gas in its operations could have an adverse significant impact on the operating costs 3. Its declining generation capacities as seen from its recent results Weakness can lead to reduction in its profitability and operations
1. Strategic acquisitions, agreements and contracts (with DEPA, a Greek company; GAIL, Tranvia De Murcia, Societe Nationale pour la Recherche, Sonatrach, Sonelgaz, Iberdrola Ingenieria and the Portuguese company Transgas Armanzenagem) will increase its market presence and also help the company to better compete with its peers 2. Planned investments in its high performing assets will help the company increase its customers and meet any increase in the demand for natural gas in the region 3. Its strong focus on R&D and its smart grid deployment gives it a competitive advantage against its competitors 4. The global energy demand outlook, boosted by increasing demand for oil, gas and electricity across the world can be used by it to Opportunity leverage its position
1. Its operations are subject to extensive federal, state and local environmental regulatory requirements, which can increase its compliance costs and impact its profit margins adversely 2. It is subject to risks inherent in the electricity sector whose evolution carries certain risks for any electric utility, which could negatively impact its business 3. A major portion of its operating expenses are linked to the purchase of gas for supplies or for the energy production of its combined cycle plants which exposes it to the variation in commodity prices that are determined based mainly on crude oil prices and oil derivatives 4. Operational risks pertaining to its businesses, leading to loss of life Threats and property can adversely impact its profitability
Competition
1. BG Group Plc 2. Centrica 3. Iberdrola Competitors 4. Distrigas SA
doc_834019202.docx