Our project for the future

Our strategy

In 2016, we continued developing our activity in line with the established drivers and strategic criteria as established in the Strategic Plan 2015-2017, focusing on the three identi ed pillars of growth. This has allowed us to meet our annual targets once again. 

Furthermore, we have de ned our strategic priorities for the 2017–2020 period, which includes stable growth with high visibility in net income and dividends. Enagás also prioritises the contribution to energy security and supply diversi cation in Europe, our positioning as a strategic operator in growth markets and encouraging the replacement of more polluting fuels: 

Crecimiento de enagás


  • Consolidation of Enagás’position, in regions where the company already has a presence, through growth of its subsidiaries
  • Global consolidation of GNL Quintero
  • Commissioning of green eld projects: TAP, Gascan and Midcat/STEP
  • Monitoring of potential opportunities for assets in operation 
Sólida posición financiera y de liquidez de enagás

Sound financial and liquidity position 

  • Solid and visible cash flow generation 
  • Maintain FFO/DN at > 15%
  • No significant debt maturities until 2022 
  • Fixed debt above 80% 
Eficiencia y visibilidad regulatoria enagás

Efficiency and regulatory visibility 

  • Remaining on track to improve operational efficiency and safety
  • Encouraging greater use of Enagás facilities to add depth to gas markets and lower prices
  • Regulatory continuity, based on the gradual elimination of the Gas System deficit 
tractiva y sostenible retribución al accionista enagás

Attractive and sustainable shareholder remuneration

  • Dividend growth (5%) in line with net income
  • Sustainable dividend
Liderazgo en sostenibilidad enagás

Leadership in sustainability

  • Promotion of new services and uses for natural gas in transport
  • Commitment to reducing the carbon footprint report
  • Commitment to reconciliation and equal opportunities
  • Transmission and storage of natural gas, LNG infrastructures, logistical solutions and related activities
  • Long-term contracts and solvent off-takers
  • Stable and predictable flows
  • Role as industrial partner with veto powers, Enagás managers in key positions and participation in working groups
  • Partnerships with local companies/companies with complementary capabilities. Reputable partners

The variable remuneration for employees is linked to fulfilling strategies through the establishment of the strategic priorities as company objectives. The variable remuneration of the Chairman and Chief Executive Officer depend on these objectives, and in this way remuneration is tied to economic, environmental and social objectives.

Approval was given in 2016 to a long-term incentive (see the chapter en 'Good Governance') which is subject to the realisation of the following objectives in line with the strategic drivers:

Strategic priorities

ILP Plan Objectives (% weighting)

Yearly company objectives (% weighting)

Meeting 2016
Objectives (%)

Ensuring adequate and competitive shareholder remuneration

Relative Total Shareholder Return (TSR) (20%)

  • This indicator takes into account the evolution of shares and the dividend policy
  • It is relatively measured against a peer group 
  • Investors and proxy advisers expect the plan to be linked to this target

Improved company economic performance (30%)

  •  Net income growth


Financial soundness

Growth in net profit


Funds from operations (FFO) as an indicator of financial soundness and growth in net profit (40%)

  • It takes in both the EBITDA of the regulated business and dividends coming from international investment
  •  It is a primary indicator for investors
  • Meeting this objective enables the targets of Group dividend payment, investment and debt repayment to be met

Strengthening Regulated Revenues (25%)

  • Regulatory and remunerative actions
  • Integrated OPEX margin management
  • Development of logistic-commercial plan



Focus on international growth

Realistic/profitable investment plan

Dividend from international investment (30%)

  • This measures the profitability of international business
  • International investment is included as an indicator for yearly variable remuneration


Consolidation of the Company’s Strategic Plan (25%) 

  • Development of the Business Plan
    • Update of Enagás’ mid- and long-term strategy
    • To execute 2016 investments according to the Strategic Plan
    • Consolidation of the international business in order to guarantee profitability


Sustainability, as a framework
for developing Enagás' business

Sustainable Management Plan (10%):

The assessment of the Sustainability Plan is carried out by the Appointments, Remuneration and CSR Committee on a discretionary basis and depends on a set of results in this area: 

  • Carbon Footprint (30% reduction for 2013-2015)
  • Commitments made to the government associated with equality and non-discrimination
  • Corporate Social Responsibility

Sustainability and Good Governance (20%):

  • Sustainability and energy efficiency
  • Positioning Enagás vis-à-vis socially responsible investors (SRI)
  • Stakeholder management
  • (Peru, Mexico)
  • Strategic Resources Plan