Enagás benefits from asset rotation

Spanish energy utility, Enagás ’ net profit for the first nine months of this year, excluding the effect of asset rotation, amounted to €233.5 mill, a 7.8% rise on the same period of 2023.?

Including the effects of asset rotation, net profit for this period was €130.2 mill.?

These results, which reflect the high degree of compliance with the company’s 2022/2030 Strategic Plan and its positive performance, are ahead of schedule, despite the impact of the 2021/2026 regulatory framework, and are on track to exceed the upper end of the 2024 recurring net profit target range, Enagás said.?

As of 30th September, Enagás’ EBITDA totalled €572.8 mill, 0.1% higher than in the same period last year.

The company said that it continued to make progress, with a high level of execution, in fulfilling the Strategic Plan in its three key areas of action: the asset rotation plan to contribute to the de-carbonisation and security of energy supply in Spain and Europe; the efficiency plan and control of operating and financial costs, and the renewable hydrogen calendar.

Enagás most important milestone in the asset rotation plan was the closing of the sale of its stake in Tallgrass for $1.1 bill on 29th July, which followed the 27th June sale of the company’s 50% stake in the Soto La Marina Compressor Station (Mexico) for €15 mill.?

In June, construction of Germany’s first onshore LNG terminal (Stade LNG) began after the Hanseatic Energy Hub (HEH) consortium took the final investment decision (FID) and completed the financing. Enagás will be the terminal’s operator with a 15% shareholding.

The total investment in the terminal, which is expected to start commercial operations in 2027, is estimated at €1.6 bill.

During the period, Enagás reduced its operating expenses by 4%, compared to the same period last year. The company’s net debt was reduced by €1 bill following the sale of Tallgrass.?

As a result, as of 30th September, 2024, the company’s gross debt cost fell to 2.7%. The forecast is for it to drop to 2.6% by the end of the year and to 2.4% in 2026.

In addition, 95% of Enagás’ gross debt is on fixed rate terms with an average maturity of five years, which mitigates the impact of interest rate volatility.?

The sale of Tallgrass strengthened Enagás’ balance sheet to face the new hydrogen investment cycle and consolidates the company’s dividend policy and its long-term sustainability, the company said?

The Spanish gas system continued to operate with 100% availability in a year marked by international conflicts in the Middle East and the Ukraine.

During the period, Spain received natural gas from 12 different countries. Following the instructions of the Spanish Ministry of Ecological Transition and Demographic Challenge, on 12th August Enagás activated - five months before the deadline set by the European Union - a procedure for defining the methodology for monitoring, controlling and authorising LNG cargoes for the Spanish gas system, in compliance with the European Union’s sanctions package.

Following the recent regasification plant capacity auctions, 2,189 LNG unloading slots and 950 loading slots were contracted until 2039.?