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Enagás cuts profit by 7% but meets targets thanks to capital gains

Date: March 24, 2023 Time: 02:22:04

Enagás obtained a net profit of 375.8 million euros in 2022, which represents a drop of 7% compared to the previous year. However, the energy company has met all the objectives established for the year thanks to the “high degree of execution” of its strategic plan. The goal that was set established net profits of between 380 and 390 million euros, including the capital gain from the sale of the Morelos gas pipeline, an operation that it expects to close during the first four months of the current year.

As notified this Tuesday to the National Securities Market Commission (CNMV), it also had a positive impact from the sale of its stake in GNL Quintero for 205 million euros, which includes a tax associated with the repatriation of the cash generated by import of 44 million euros. For its part, the net capital gain from the sale of 30% of Enagás Renovable was 50.4 million euros, while there was a negative impact of 133.8 million euros due to the impairment of its US investee Tallgrass Energy.

On the other hand, the contribution of investee companies fell by 7.5%, to 201.2 million euros, representing approximately 39% of the profit after tax. Enagás announced in January this year the increase in its stake in TAP from 16% to 20%, as part of the asset rotation process and in line with its strategy. However, it has had to reverse the purchase of 20% of the share capital of the European interconnector BBL upon learning that the current shareholders of the Dutch company had exercised their right of preferential absorption,

Reduce debt by 19%

For its part, the gross operating result (Ebitda) stood at 797.4 million euros, 11% less year-on-year, while the net debt fell by 808 million euros (-19%), from 4,277 million euros in December 2021 to 3,469 million euros at the end of 2022 In 2022, it thus maintained the ‘BBB’ rating by Fitch and S&P.

Total group revenue reached 970.3 million euros, 2.1% less, while regulated revenues fell 1.8% (950.4 million euros) due to the application of the 2021-2026 regulatory framework (- 45.1 million euros), although this impact has been partially offset by the remuneration of audited expenses (38 million euros).

Enagás foresees investments that could reach 4,755 million euros up to 2030 if the interconnection projects of the ‘RepowerUE Plan’ are included, in which the group could participate and which are in the proposal and approval phase, according to the plan currently in progress. summer of last year. In this, he estimates that the entry into operation of the planned investments will change the profile of the company, with a sense of profitable growth of its gross operating result (Ebitda) adjusted by dividends of 2% per year in the period 2022-2030 and from 4% from 2026.

For its part, with regard to the dividend, the group has reaffirmed the path that had already been set of an increase of 1% for 2022 (up to 1.72 euros) and 2023 (up to 1.74 euros). It also set a floor of 1.74 euros until 2026, the horizon until which the company gives visibility for the remuneration to its shareholders.

In a year of great volatility in the energy markets, Enagás highlighted that the Spanish gas system has operated with 100% availability 24 hours a day, every day of the year. “Enagás’ infrastructures have been key to the security of supply in Spain and the European Union”, the company highlighted in the relevant event. Gas demand and exports grew by 4.4% last year. Gas exports to Europe through interconnections with France will increase by 22 terawatt hours (TWh) and liquefied natural gas (LNG) tanker refills from Spanish terminals will increase by 45%, reaching the third highest historical value. . In 2022, Spain had a supply portfolio from 19 different origins.

First year of Gonzalo Aizpiri

Enagás appointed Arturo Gonzalo Aizpiri as the new CEO in February of last year, replacing Marcelino Oreja. He assumed all executive functions after the president of the company, Antonio Llardén, decided to cede executive functions to him. He continued as non-executive chairman and chairman of the board of directors.

Gonzalo Aizpiri has been part of the Repsol team since 1990. At the oil company he was General Director of People and Organization, General Director of Communication, Institutional Relations and the Presidency and head of the Audit, Control and Risk areas. For his part, in the public sector he was general director of the Environment Agency of the Community of Madrid, general director of Environmental Policy and general secretary for the Prevention of Pollution and Climate Change in the Ministry of the Environment . He has also been president of the Spanish Committee of the World Energy Council and vice president of the Spanish Energy Club.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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