Our strategy

Strategic priorities 2017 - 2020
  • Marketing of value-added services, leveraged by the existing capabilities and experiences in Enagás
  • Commissioning of TAP and development of Greenfield Gascan and Midcat/Step projects
  • Solid and visible cash flow generation
  • Maintain FFO/ND at > 15%
  • No significant debt maturities until 2022
  • Fixed-rate debt above 80%
  • 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
  • Dividend growth (5%) in line with net profit
  • Sustainable dividend
  • Promotion of new services and uses for natural gas in transport
  • Commitment to reducing the carbon footprint
  • Commitment to reconciliation and equal opportunities
Criteria for the development of the strategy
  • Transmission and storage of natural gas, LNG infrastructures, logistical solutions and related activities
  • Long-term contracts and reliable offtakers
  • 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
Meeting 2017 objectives

The strategic priorities are established as company objectives linked to the variable remuneration of all Enagás professionals, including the Chairman and CEO, thus linking remuneration to economic, environmental and social objectives.

Moreover, Enagás has a Long-term Incentive Plan in place, requiring the fulfilment of objectives aligned with strategic priorities, thus linkin gremuneration to the commitment to long-term management.

In 2017, we met the established objectives and we are making progress towards our long-term objectives:

Strategic priorities Long-term Incentive Plan Objectives (% weighting) Yearly company objectives (% weighting) Meeting 2017 Objectives (%)
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 profit growth
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 the regulated income improvement plan
Dividend from international investment (30%)
  • Measures the profitability of the international business
  • International investment is included as an indicator for yearly variable remuneration
Consolidation of the Company’s Strategic Plan(25%):
  • Strategic analysis of the growth model
  • Development and consolidation of the affiliates business plan
Sustainable Management Plan (10%):
The assessment of the Sustainability Plan is carried out by the Appointments, Remuneration and CSR Committee:
  • 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)
  • Supply chain sustainability
  • Strategic Resources Plan
  • Digitalization