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Enagás Passes Covid With A Profit Of 440 Million

ByKarol Kowalski

Feb 23, 2021

Enagás exceeds the year of the coronavirus pandemic with a profit of 440 million, 5.1% higher than that registered in 2019, as reported by the company to the National Securities Market Commission (CNMV).

Thus, it complies with the objective established for this year (440 million euros). The company will propose a dividend of 1.68 euros gross per share at its next shareholders’ meeting , which represents an annual increase of 5%.

The energy company chaired by Antonio Llardén is going through a difficult year for energy, with a drop in gas consumption throughout the world. Something that is reflected in the company’s income , which has fallen by 5.8% compared to 2019, to 1,084.0 million euros, as a result of the effect of the coronavirus on demand and its impact on the RCS component.

However, the total demand for natural gas in Spain in 2020 was 360 TWh, the second highest since 2012.

The accumulated net investments at the end of the year amounted to 859.2 million euros, highlighting the investment corresponding to the Tallgrass Energy operation for an amount of 762.8 million euros.

A company that, finally, has performed well in a very difficult year for the oil & gas sector in the United States and the outlook for the next few years is positive, as it is expected that the recovery of prices and production in the basins in which it operates, started in the second half of 2020, is sustained.

After four and a half years of construction, the Trans Adriatic Pipeline was launched in 2020 (TAP), a key infrastructure for European energy diversity and security, in which Enagás has a 16% stake and in which it has invested 218 million euros.

The result of the investee companies amounts to 174.8 million euros (162.1 million euros in 2019) with a dividend received of 118.3 million euros. It should be noted that the shareholders of Tallgrass Energy have decided to distribute a dividend for the amount of 91 million dollars charged to fiscal year 2020 and continue in 2021 to strengthen the financial structure of the company.

Net debt at the end of 2020 amounted to 4,288 million euros, with a financial cost of debt of 1.9%. The FFO / DN ratio as of December 31, 2020 was 16.0%.

Enagás has presented its strategic update 2021-2026 , a period for which the Spanish regulatory framework has already been defined, which provides visibility to the company’s regulated revenues in the next six years.

At the international level, the company estimates that its investee companies will contribute an average annual dividend of 250 million euros, as they are basically regulated assets or with long-term contracts.

The company, which has increased its shareholder remuneration by 5% in 2020, maintains its estimate of 1% annual growth for 2021, 2022 and 2023, and is committed to maintaining a sustainable dividend of 1.74 euros per share for the period 2024-2026.

The company has announced that it is advancing its goal of being carbon neutral to 2040, ten years ahead of its estimate of just a year ago. Enagás is promoting renewable gas projects in Spain that meet the following criteria: contribute to decarbonisation and a fair and inclusive transition, are tractors throughout their value chain, contribute to the development of Spanish industry and generate sustainable employment.

The company is already working on 30 hydrogen and 16 biomethane projects , with more than 50 partners and in practically all the autonomous communities, which could mobilize a joint investment of around 5,000 million euros.

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