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Enagás increases profit by 19.5% in the quarter and moves towards its annual objective

Date: July 13, 2024 Time: 20:16:03

Enagás recorded a net profit of 65.3 million euros in the first quarter, which represents an increase of 19.5% compared to the same period last year, and is progressing as planned to achieve its annual objective of between 260 and 270 millions of euros. The company has notified this Tuesday to the National Securities Market Commission (CNMV) an income of 220.5 million euros between January and March, in line with those of the first quarter of 2023, despite the impact of the regulatory framework, mainly for the contribution of Copex investments and income from the Musel E-Hub plant.

The gross operating result (Ebitda) of the group led by Arturo Gonzalo Aizpiri stood at 178.3 million euros at the end of March, with a year-on-year increase of 2.7%, thanks to the intensification of the efficiency and control plan of operating expenses. which as of March 31st remained stable compared to the same date of the previous year. According to Enagás, these results reflect “the high degree of execution” of its 2022-2030 strategic plan in its three axes: the investment plan to contribute to the decarbonization and energy security of Spain and Europe, the control of certain operating and financial costs, and The advance in the renewable hydrogen calendar.

For its part, net debt stood at 3,342 million euros at the end of the quarter, a figure similar to that of 2023 and expected to remain stable throughout the current year. The gas system operator has reported that it is covered at a fixed rate by more than 80%, which allows it to mitigate the impact of interest rate volatility. The financial cost of the gross debt is 2.8% and has an average life of about five years, after the company closed a bond issue of 600 million euros at the beginning of the year, maturing in 2034.

Liquidity of more than 3,100 million euros

Enagás has leverage ratios compatible with a ‘BBB’ credit rating and presents a “solid liquidity situation”, according to the company itself. A closing was 3,131 million euros. Recently, Moody’s has raised the outlook for Enagás’ rating to ‘stable’, maintaining the rating at ‘Baa2’. According to the quarterly report, the result of the investee companies is more positive than that obtained in the first quarter of the previous year, with a contribution of 41.5 million euros, 13.3% more. In the company’s opinion, it is a “clear example of the good performance of all subsidiaries.” It is worth highlighting the greater contribution from TAP due to the acquisition of an additional 4% in July 2023.

Operating cash flow was €65.4 million and working capital stood at -€97.9 million. In the first quarter of 2023, the working capital – due to imports of -77.1 million euros – included the payment of the tax for repatriation of the cash associated with the sale of GNL Quintero (-42.5 million euros). The investment figure at the end of the first quarter recorded a cash outflow of 41.3 million euros, which includes the increase in Enagás’ stake in HEH (Stade) from 10% to 15%.

In the first quarter, the positive trend in industrial demand in Spain continued, with an increase of 8.4% to reach 47.6 TWh, driven by the refining, chemical, pharmaceutical and cogeneration sectors. Conventional demand – which in addition to households also includes industrial demand – grew by 2%.

In 2024, the company foresees an Ebitda of between 750 and 760 million euros, a net debt of around 3.4 billion euros and a dividend of 1 euro per share. The dividend corresponding to the 2023 financial year remains as planned at 1.74 euros per share and will be paid in July with the distribution of 1,044 euros, after the first payment already made in December.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

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