Enagás Reports €263 Million Profit by September, Driven by Capital Gains, and Progresses Towards Annual Goals

Enagás reported a net profit of €262.8 million in the first nine months of the year, compared to a loss of €130.2 million in the same period last year, which was affected by the capital losses from the sale of its stake in the US-based Tallgrass Energy, the company stated, as it progresses towards its 2025 targets.

Specifically, the group's accounts up to September include the impact of capital gains from the sale of Soto la Marina (€5.1 million) and Sercomgas (€9.6 million), and the fair value update of the Gasoducto Sur Peruano (GSP) following the publication of the rectification resource (€41.2 million).

Without these capital gains, Enagás' recurring profit for the period stands at €206.9 million, 11.4% below the €233.5 million from a year ago.

The group's revenue, which manages Spain's large gas pipeline network, reached €711.2 million from January to September, marking a 6.9% increase compared to the first nine months of 2024.

The EBITDA as of the end of September was €505.9 million, showing a decrease of 11.7%.

Funds from operations (FFO) as of September 30th for Enagás stood at €463.0 million. The FFO includes €117.3 million in dividends from subsidiaries. The company maintains a solid financial position, with a strong liquidity position of €2.703 billion.

Meanwhile, Enagás' net debt at the end of the first nine months of this year amounted to €2.347 billion, representing a reduction of €57 million since the end of 2024.

The financial cost of gross debt stood at 2.2%, compared to 2.7% at the end of the first nine months of last year and 2.6% at the end of 2024. The FFO/DN ratio was 27.4%, compared to 28.7% recorded at the end of 2024.

Thus, the company led by Arturo Gonzalo highlighted that it is advancing towards its 2025 goals, where it expects a recurring post-tax profit of around €265 million, an EBITDA of approximately €670 million, and to close the year with a net debt of around €2.4 billion, with a dividend of one euro per share.

During the period, Enagás has progressed in executing its 2025-2030 strategy, focusing on boosting green hydrogen, with key milestones in the development of the Spanish Hydrogen Backbone and H2med, the first major European green hydrogen corridor, as well as the deployment of the Public Participation Plan of the Network, the receipt of CEF funds for studies and engineering, and the establishment of the BarMar company.

By the end of September, the H2med Alliance added 40 new members (49 in total) to accelerate its deployment, and that same month, Brussels included the Spanish Hydrogen Backbone and the H2med corridor among the eight priority 'Energy Highways' for the EU.

Similarly, in Spain, during the third quarter, Enagás received €32.5 million from CEF-E funds from the European Climate, Infrastructure and Environment Executive Agency (CINEA), to finance studies and engineering of the Spanish Hydrogen Backbone and the interconnections of the H2med corridor.

Additionally, the Conceptual Public Participation Plan (PCPP), initiated on April 25th in Castilla-La Mancha, has already been deployed in six autonomous communities and more than 150 municipalities. Regarding the technical advances of the Backbone, the basic engineering awards have already been made - where work has begun - and detailed engineering, both of the network and compression stations.

The group is working with six Spanish engineering firms for the development of this project and has launched a market information request for the selection of suppliers for pipes, valves, and equipment, so that the construction of the infrastructure begins as scheduled.

Regarding the regulatory aspect, last July the National Commission on Markets and Competition (CNMC) submitted a draft circular for public consultation to regulate the methodologies for determining the financial remuneration rate (TRF) for electricity transmission and distribution activities, and regasification, transportation, and distribution of natural gas, whose rate resulting from the TRF calculation methodology is approximately 6.4%.

Enagás considers that this figure "is very close but does not reach the minimum TRF base it established in its financial projections from 2027," and has therefore submitted objections to this proposal.

Moreover, on October 9th, the Supreme Court ruled in favor of Enagás Transporte in its compensation claim for projects in the Canary Islands, recognizing compensation to the company, including legal interest and procedural costs, for an approximate amount of €20 million.

Additionally, on July 24th, Enagás announced the acquisition of the remaining 51% of Axent, owned by Axión Infraestructuras de Telecomunicaciones, for €37.5 million. This operation will generate an accounting capital gain, not yet recorded, of approximately €15 million.

Regarding the gas system, the total demand for natural gas and exports during the first nine months of 2025 stood at 267.6 terawatt-hours (TWh), with an increase of 6.6% compared to the same period last year.

This growth in gas demand was due to the increase in power generation (+36.8%) by the increased participation of combined cycles, as a reinforcement to the security of electricity supply.