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    Spain's Enagas Sees Uptick in 9M Profits


Enagas attributed the result to cost control, stable revenues and a forex gain.

by: Joe Murphy

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Spain's Enagas Sees Uptick in 9M Profits

Spanish gas transmission system operator Enagas achieved a 4.7% growth in net profits in the first nine months of the year to €349mn ($413mn), the company said on October 20. 

Enagas attributed the result to cost control and relatively stable turnover – revenues were down 4.8% but operating expenses were also down 4%. It also made a non-recurring €18.4mn gain from exchange-rate movements. Enagas said it was still on track to meet its full-year goal for net profits of €440mn, and would keep its commitment to pay €1.68/share in dividends for 2020. Output at its LNG regasification terminals rose 4% year/year, with 190 carriers unloaded.

On the market's recovery, Enagas noted that conventional gas demand had returned to pre-pandemic levels in September, forecasting full-year demand of around 353 TWh, down from 398 TWh in 2019. Its gas network has operated at maximum technical and commercial availability with gas storage almost full.

Enagas will get a boost from the launch of the Trans-Adriatic Pipeline (TAP) that will bring Azeri gas to southeast Europe, in which it has a 16% stake. Commissioning is expected to start in November and it will carry 8bn m³/yr at plateau to Italy and 2bn m³ to the Balkans. Gas prices however are very low for the winter as the European market is already over-supplied, so ramp-up might take some time.