Enagas Profits Climb on Back of Acquisitions
Spanish gas company Enagas posted €333mn ($368mn) in net profits for the first nine months of 2019, a 2.3% increase from a year earlier.
Earnings were higher than anticipated, but growth was largely the result of income from Enagas’ recently-acquired stakes in Greek grid operator Desfa and US-based gas firm Tallgrass Energy, the Spanish firm said on October 22.
Revenues dipped 1.3% to €872.4mn, while pre-tax earnings (Ebitda) grew 6.9% to €767.2mn. Enagas also recorded a more than fivefold increase in investments to €756.6mn, largely reflecting its purchase of a 10.9% stake in Tallgrass earlier this year. Enagas also ramped up spending on the Trans-Adriatic Pipeline (TAP), in which it has a 16% share. The pipeline that will carry Azeri gas to Greece, Albania and Italy is due on stream next year.
Demand for gas in Spain climbed 16.9% in the nine-month period, reaching 294 TWh, as a result of the increased use of relatively cheap gas in power generation, as opposed to coal and reduced hydroelectric output. As a result, LNG regasification plants and underground storage facilities are now working at near-maximum capacity, Enagas said. The growth trend is set to continue, it said, forecasting a full-year increase of 14%.