Enagás' strategy

×

Error message

  • The specified file temporary://fileAOebIj could not be copied, because the destination directory is not properly configured. This may be caused by a problem with file or directory permissions. More information is available in the system log.
  • The specified file temporary://filegHB7VP could not be copied, because the destination directory is not properly configured. This may be caused by a problem with file or directory permissions. More information is available in the system log.

In February 2015, Enagás presented an update of its Strategic Plan 2015-2017, which continues the approach that the company has been using.

Last year, we continued developing our activity in line with the established drivers and strategic criteria, focusing on the three identified pillars of growth.

 

   PILLARS OF GROWTH

Participate in the integration of the European natural gas market. Mature, competitive market - EU: Enagás seeks to become a key European player with increasing importance in the Internal Energy Market.

Develop natural gas infrastructures in growth markets. Growth market: Lay the foundations for rolling out Enagás' business model as an independent TSO in countries with high growth potential.

Strengthen Enagás' position as global LNG expert. Global market: Leverage opportunities to interconnect markets worldwide, with Enagás maintaining its position as leader in LNG.

‘STRATEGIC DRIVERS’

Efforts in operating efficiency.

Efforts in operating efficiency

Realistic / profitable investment plan.

Realistic / profitable investment plan

Focus on international growth.

Focus on international growth

Sustainability as a framework for developing Enagás' business.

Sustainability as a framework for developing Enagás' business

STRATEGIC CRITERIA

Transmission and storage of natural gas, Liquefied Natural Gas infrastructures, logistical solutions and related activities.

Transmission and storage of natural gas, Liquefied Natural Gas infrastructures, logistical solutions and related activities

Long-term contracts and reputable offtakers.

Long-term contracts and reputable offtakers

Role as industrial partner with veto powers, Enagás managers in key positions and participation in working groups.

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.

Partnerships with local companies / companies with complementary capabilities. Reputable partners

Stable and predictable flows.

Stable and predictable flows

SUSTAINABILITY AS A STRATEGIC DRIVER

Enagás upholds the COP21 Global Agreement to keep temperature rises below 2 ºC and proactively helps to achieve this by offering sustainable energy solutions. Gas infrastructures ensure a cleaner and more affordable energy supply to fuel the growing economy and promote social wellbeing, while facilitating the introduction of renewable energy and biogas. 

One of Enagás' strategic priorities is to replace carbon-intensive fossil fuels with natural gas: 

  • Developing infrastructures that allow a highly efficient use of natural gas in the power generation, industrial, commercial and residential markets, thus replacing highly polluting fuels.
  • Contributing towards reduced emissions in the transport sector and reducing local contamination by fostering the use of LNG regasification terminals for bunkering (sea transport) as well as developing small-scale LNG solutions (road transport).
  • Enabling the penetration of biogas in our transmission infrastructures.

This strategic commitment is reflected in our Climate Change Management Model with specific results: Enagás has been acknowledged as a leading company in sustainability.

Once again we have achieved our targets: investments (both in Spain and worldwide), increased profits and shareholder remuneration, and debt:

 

Capex: 430 million euros.

 

Growth in net profit: more than 1.5%.

Dividend per share: 1.32 euros. Net debt: 4.237 billion euros. Cost of debt: ~2.7%.

Such strategy fulfilment is linked annually to employees' variable remuneration by setting the four strategic drivers as company targets. Variable remuneration of the Chairman and CEO depends on these targets. Therefore, remuneration is linked to economic, environmental and social targets.
 

Strategic driversCompany
objectives
IndicatorLevel of
attainment 
Operational efficiencyImprove the company's financial resultsNet profit growth (+0.5% over 2014).100%
Investment planConsolidate regulated revenues
  • Undertake regulatory and remuneration actions that ensure company revenue (GTS remuneration, etc.).
  • Ensure proper introduction of efficiency measures to consolidate the remuneration framework. 
  • Develop the logistics-sales plan, to help increase revenue for the system and for Enagás.
97.33%
International
growth
Launch of the company's Strategic Plan
  • Develop the company's Business Expansion Plan in accordance with the established strategic and profitability criteria.
  • Implement the actions identified in the 2015 Strategic Resources Plan, which guarantee the resources and cultural change required in the organisation to undertake the new strategic lines.
100%
SustainabilityHelp the development of the company through sustainability and good governance
  • Implement the new risk management model in order to provide senior management with key information for making business decisions. 
  • Bolster Enagás' positioning vis-á-vis institutional investors and socially-responsible investors (SRIs).
  • Improve energy efficiency and reduce CO2 emissions.
100%