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    Enagas 1H Profit Stable, Debt Reduced


Spanish gas grid Enagas maintained profits in first half 2018 and paid down debt.

by: Mark Smedley

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Natural Gas & LNG News, Europe, Carbon, Renewables, TSO, Infrastructure, Liquefied Natural Gas (LNG), Pipelines, Trans-Adriatic Pipeline (TAP) , Chile, Peru, Spain

Enagas 1H Profit Stable, Debt Reduced

Spanish gas grid owner-operator Enagas reported July 17 that its net first half 2018 profit of €219.8mn ($257mn) was up 1% year on year. It added that the contribution to net profit of its affiliate companies, including Chile's LNG Quintero, was 21%. But its statement gave no update on issues relating to Peru.

Demand for natural gas across Spain grew by 5.9% in 1H2018, driven by a 7.8% increase in consumption from households and non-power businesses.

Enagas invested €102.1mn overall, of which €84.8mn in the Trans Adriatic Pipeline (TAP) in which it holds a 16% stake. It noted that TAP as a whole was granted a €500mn EBRD loan in July, on top of the €1.5bn that the EIB had already agreed to lend TAP. 

TAP itself said July 16 it had temporarily suspended major construction works onshore Italy for the summer period only, out of respect to the region of Puglia's important tourist sector, as it had in the past. The pipeline developer was misquoted by an Azeri news agency as having said the suspension had been forced upon it by the new Italian government.

Enagas net debt was reduced by 9% or by €454mn, compared with end-2017, to €4.55bn as at end-June 2018 - enabling it to retain a solid 'A- ' rating from both Standard & Poor’s and Fitch.

It said it had been working on various non-electric renewable projects (including hydrogen) as new energy solutions that it argues will be key to decarbonisation, citing a collaboration agreement that it signed in May with Biogastur for joint development of biogas and biomethane in northern Spain, and on initiatives to use gas for transport, especially for trucks and ships, and in recycling cold energy. Last week too, it became the 14th company to sign the UN Guiding Principles on reducing methane emissions.

But its statement to the Madrid stock market made no reference to Peru, where it is trying in talks with the government there to recover its 25% interest in Gasoducto del Sur Peruano (GSP) after termination of the GSP concession - for reasons not directly related to Enagas - by Peru's government on January 23 2017Enagas' interest in a separate Peruvian pipeline concession, TgP, is unaffected by the GSP issue.