Enagas 9M Profits Flat, Debt Reduced

Spanish gas grid operator Enagas said October 16 that it made a net profit of €325.7mn ($377mn) in the first nine months of 2018, up 1% year-on-year.

That excludes non-recurring gains reported in January 2017 as a result of consolidation derived from the global integration of the Quintero LNG import terminal in Chile into Enagas’s accounts. The operator’s affiliates, mainly outside Spain, accounted for 20% of its net profit.

Spanish national gas demand increased by 1.7% in the first nine months of 2018, mainly due to increased consumption by industries, which accounted for 60% of Spain’s demand. Current forecasts are that Spanish demand for full-year 2018 will be similar to that of 2017.

Net debt at end-September 2018 was €4.659bn, so €349mn (or 7%) less than at end-December 2017; it may be cut further as a result of Enagas’s €96mn divestment from Swedegas announced last month.

Enagas and Spanish airports/infrastructure operator Ferrovial last week agreed to explore opportunities together that boost the production and distribution of biomethane, while in July Enagas and Repsol agreed to develop technology to produce renewable hydrogen from solar power.

Its results statement provided no update on the arbitration case pending regarding Peru, where it had a 25% interest in the Odebrecht-operated GSP pipeline concession that was terminated in January 2017.