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    Spain's Enagas hits Q1 financial targets


The infrastructure operator benefited from a one-off currency gain but its subsdiaries also contributed more.

by: William Powell

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Spain's Enagas hits Q1 financial targets

Spanish gas infrastructure operator Enagas has hit its financial goal for Q1 2021 with a profit after tax of  €92.9 (US$112)mn, it said April 20.  The profit was achieved following the new regulatory framework for the period 2021-2026. It enjoyed a one-off boost from exchange rate differences that brought €18.4mn which will not be repeated this year, it said.

Enagas estimates a full-year profit of around €380mn, thanks to the intensification of the control plan and savings in general expenses which have already yielded an 11% cut compared with Q1 2020.

Earnings from shareholdings have risen by 41.2% year on year and now represent 38.1% of the company's post-tax profits. These include the Trans Adriatic Pipeline (TAP), of which Enagas owns 16% and which "has started for the first time to contribute significantly to the results of the company after its start-up at late 2020."

However the line only brought 1.16bn m³ of Caspian Sea gas, which although in line with expectations is less than the projected capacity of 10bn m³/yr when at plateau. The operational availability of the infrastructure in the period has been 100%.

Enagas is also a 30.2% shareholder in Tallgrass Energy which enjoyed a good quarter, playing a key role "guaranteeing energy supply during the cold wave in the US," it said.

So far this year, conventional demand in Spain, which represents 86% of the total, has reached 100.5 TWh, representing an increase of 4.7% with respect to to the same period of 2020. Total demand has reached 117 TWh, 0.8% more than on the same date in 2020.

Enagas has also reduced its emissions by 63% since 2014, which it said "reinforces its firm commitment to the ecological transition and its goal of being carbon neutral by 2040." Enagas has a portfolio of 55 renewable gas projects with some 50 partners which could attract a total joint investment of up to €6.3bn.