Spanish energy group Naturgy announced on July 23 it had reached a deal with Algeria’s national oil and gas company Sonatrach setting prices for gas deliveries in 2024. The company revealed the news as it reported high earnings for the first half and predicted results to remain strong for the rest of the year.

Naturgy has contracts in place with Sonatrach to receive around 5bn cubic metres (bcm) per year of gas. The company said the price deal confirmed its “ability to reach agreements in competitive contexts.” It did not divulge details, however.

“It also provides the solidity of the historical relationship between the parties and ratifies the commitment of both companies to the security of supply to the Iberian Peninsula,” Naturgy chairman Francisco Reynes said. “Sonatrach is indeed proving to be a reliable partner.”

Naturgy added that its key financial numbers for the first half of the year exceeded the market consensus, in line with figures achieved last year, with EBITDA arriving at €2.85bn ($3.1bn), and net income at €1.04bn. This achievement came “now in a more competitive scenario marked by a sharp global decline in energy prices,” it said.

“These results demonstrate the company’s strength in adapting to the environment and generating value for its shareholders and are the result of a model based on operational efficiency, proactive risk management and financial discipline in capital management,” Naturgy said.

The company forecasts net profit to exceed €1.8bn for the full year, and EBITDA to reach above €5.3bn, both also exceeding market expectations. It had previously avoided giving guidance, citing energy market volatility and uncertainty about weather conditions.

Naturgy also said it was drawing up a new strategic plan through 2030. The move comes after its largest shareholder, Spanish investment vehicle Criteria, failed to reach a deal in June with Abu Dhabi’s TAQZ on a joint takeover bid. Talks between the pair have now been terminated.

Biomethane will feature centrally in the new plan, Reynes said.

Algeria provided close to 40% of Spain’s total gas imports in January through June, according to data from Spanish gas grid operator Enagas. The bulk of that supply is pumped via the Medgaz pipeline, where Sonatrach has a 51% interest and Naturgy has a minority share.