Optimize Your Company's Energy Costs with Naturgy

Energy inputs play a crucial role in the operational costs of many companies, directly impacting their financial stability. These expenses account for a significant portion of the income statement, potentially affecting working capital, particularly in industries where variable and fixed costs, inventory value, and payment cycles are tied to energy consumption.

In this context, financial and operational departments must manage cash flows and working capital efficiently, without compromising the reliability of energy supply or the company’s sustainability goals.

As a global leader in energy, Naturgy has become a key partner for businesses, providing personalized solutions with a secure and more cost-effective energy source than other fuels.

Competitiveness of Natural Gas vs. Other Fuels

Competitiveness is a vital factor for the long-term success of any company. This is why businesses continuously strive to optimize their processes, reducing costs to maintain a competitive edge in the market. A fundamental aspect of this optimization is improving energy consumption, which requires careful selection of the fuel used in operational processes, as this impacts not only the company’s budget but also its sustainability commitments.

Among the most competitive energy sources for businesses is natural gas—a less polluting fuel that, due to its affordability, allows companies to significantly reduce overall expenses. The following graph illustrates the cost savings associated with natural gas compared to traditional fuels:

Advantages of Having an Energy Partner

Effective management of energy costs is essential for any company. In this regard, having a partner with expertise in the energy sector can be a decisive factor in optimizing financial performance and reducing the risks associated with energy consumption.

Naturgy has established itself as a strategic ally for businesses seeking to enhance their efficiency without compromising financial stability. The multinational company stands out for offering an integrated and personalized approach to energy management, tailoring its solutions to meet each client's specific needs in order to maximize economic and operational benefits.

Additionally, Naturgy provides clients with expert advice to improve budget planning, integrating hedging options with special pricing to mitigate energy cost volatility. The company offers between 28 to 58 days of working capital management, and in some cases, tripartite agreements between banks, clients, and energy partners to extend working capital through factoring payments or credit cards.

With the support of an energy partner like Naturgy, companies can strengthen their competitive position in the market in several ways. By optimizing energy costs and adopting more efficient solutions, businesses can free up financial resources to reinvest in other strategic areas, such as research and development, market expansion, or technological infrastructure upgrades. This reduction in operating costs also enables companies to offer more competitive pricing to their customers, potentially increasing market share and profitability.

Furthermore, by integrating sustainability practices into their energy management, companies can enhance their reputation and attract a growing number of consumers and investors who value environmental commitment. Sustainability policies also help ensure compliance with environmental regulations, avoiding fines and penalties, and preparing businesses for future regulatory changes, ensuring long-term viability.

These combined benefits enable companies not only to survive in a challenging global environment but to thrive, adapting swiftly to market changes and ensuring sustained growth.

Consult with Naturgy and Improve Your Company’s Finances

During and after the pandemic (2020-2021) and throughout the crisis caused by the Russia-Ukraine war (2022), most energy prices rose sharply and remained volatile for about a year. Even the typically stable prices of natural gas were affected.

In such an uncertain environment, having an energy partner can make all the difference. This was the case for a Naturgy client, whose financial structure was heavily reliant on natural gas, which accounted for nearly 40% of their variable costs.

Noticing a sustained rise in prices, the client consulted their account manager to explore available options to mitigate the price increases. The client received advice on the futures curve for gas prices, the pressures affecting the energy market, and potential scenarios for the coming months. After analyzing the situation, Naturgy recommended a simple 24-month hedge, locking in a price that was 42% below the average gas price for that period, saving $263,000 over the duration of the contract.

As demonstrated, Naturgy is not just an energy provider but a strategic partner that helps clients integrate solutions to improve economic management. These solutions include financial hedging and turnkey energy optimization projects (energy solutions).

For more information, visit naturgy.com.mx  

Naturgy México S.A. de C.V.

Av. Marina Nacional No. 60, Floor 6, Colonia Tacuba, Miguel Hidalgo, Mexico City.