Enagás published its financial results for the first nine months of 2019 on Tuesday. During that time, its profit after-tax stood at €333.1 million, up by 2.3% compared with the first three quarters of 2018.
In its statement, the energy company said this rise slightly above expectations is mainly due to Tallgrass and Desfa contributions. In terms of the FY, this result is in line with the established goals, it adds.
Contributions from affiliated companies stood at around 30%, with international subsidiaries accounting for a significant portion, the report highlighted.
Enagás stocks went up after the report was published, recording a 1.7% increase at the end of the session and standing at the top of the Ibex 35.
— Enagás (@enagas) 22 de octubre de 2019
Investments bolster Enagás results
In the context of these results, Enagás informed that in this period it has invested €756.5 million, mainly corresponding to the acquisition of Tallgrass Energy.
Furthermore, the company has continued to invest in the Trans Adriatic Pipeline (TAP) project – a key infrastructure to ensure energy supplies in Europe – in which it owns a 16% share.
This pipeline, set to connect Turkey and Italy through Greece and Albany, is 90% complete, in accordance with the schedule. TAP is expected to begin gas delivery tests from the infrastructures in Greece and Albany in 4Q 2019.
Greater Gas Demand
Total gas demand in Spain rose to 294 TWh during the first nine months of 2019, up by 16.9%, compared with 2018 and the highest recorded since 2009. This trend is expected to continue until the end of the year, with demand going up by an estimated 14% by late 2019.
From January to September, natural gas demand for power generation stood at 85 TWh, up by 99% from the same period in 2018.
This remarkable rise is due to a greater use of natural gas, compared with coal, and weak hydroelectric generation, in a context of competitive natural gas prices.
Industrial demand reached 160 TWh (+3%) in the first nine months of 2019, which is the highest amount achieved by the end of September on record.
New renewable affiliate company
On the other hand, Enagás approved the creation of its new subsidiary EnaGasRenovable to promote renewable gas projects. The company is committing to non-electric renewable energies (biomethane and green hydrogen) as new energy solutions that enable to move toward a more sustainable energy model.
This subsidiary will also integrate renewable gas projects like Power to Green Hydrogen Mallorca, Power-to-Gas and other agreements with the main waste managers to promote biomethane and circular economy.
Existing gas infrastructures are technically prepared to transport and store renewable gases, the company informed.
.@enagas presenta sus resultados correspondientes a los primeros nueve meses del ejercicio: modestos (BNA +2%) pero ligeramente por encima del consenso. La principal sorpresa ha sido una contribución mayor de lo esperado de las filiales internacionales https://t.co/UZJTgTgTgN pic.twitter.com/mdmQGNSQo7
— Consenso del Mercado (@consensomercado) 22 de octubre de 2019
Also in the context of its results, Enagás is also is waiting for the circular reports of the National Commission of Markets and Competition (CNMC) regarding the redistribution of the distribution network. The regulator’s initial proposal included sharp cuts that led to stocks falling by nearly 20% over the course of five days.
In this sense, the company highlighted that “drafts of the CNMC circulars regarding the gas sector are being processed. The company made the pertinent comments, which include reasonable and constructive techniques in line with the role that the National Energy and Climate Plan has given natural gas and renewable gases in the process of energy transition.”
To conclude, Enagás said it hopes that “the regulation will be coherent and enables the energy sector to continue committing to the energy transition and decarbonization.”
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