• The company meets its targets for the tenth consecutive year
• The company’s net profit is 1.1% higher than that of 2015, in line with the year’s forecast
• The investments made in 2016 strengthen the company’s strategic position with regard to assets in which it already holds a stake
• Spanish demand for natural gas, which grew by 2.1% in 2016, shows an increase of 20% in the year to date
• The company is continuing with its strategic priorities for the 2017–2020 period
• In this period the company intends to invest a total of 1.45 billion euros and achieve growth in its average accumulated profit of 3–4%
• Enagás’ commitment is to maintain the 5% annual growth in its dividend until 2020
• Enagás is the highest-ranked Spanish company and world leader in its sector on the Global 100 Most Sustainable Corporations in the World index
2016 Results Figures
Enagás reported a 2016 net profit of 417.2 million euros, which represents a 1.1% increase on 2015, in line with the target set for the year. This increase was mainly due to the contribution from its investee companies.
Specifically, international projects made a 10% contribution to the company’s 2016 net profit. The dividends paid by its investee companies came to a total of 90.5 million euros, exceeding the target set for the year.
In 2016 Enagás invested 912 million euros in assets in which the company already held a stake. These acquisitions strengthen the company’s strategic position in those projects.
At the year-end, Enagás net borrowings totalled 5.089 billion euros and financial resources stood at 2.409 billion. Over 80% of the debt was at a fixed rate and the average cost of the debt was 2.4%, versus 2.7% for the same date in 2015.
The company launched two bond issues in 2016: one for a total of 750 million euros at 12 years, with a yearly coupon rate of 1.375%; and another for 500 million euros at ten years, with an annual coupon rate of 0.75%.
These figures confirm the company’s sound financial position, enabling Enagás to continue to forge ahead towards meeting its strategic goals.
With these results, the company has met the target it has set for itself for the tenth consecutive year.
Gas demand
Spanish demand for natural gas in 2016 grew by 2.1% on 2015, reaching 321,495 GWh, which showed an increase for the second year running.
This growth was essentially due to demand by industry, the main consumer of gas natural, which rose by 3.3%, in line with the evolution of the economy, and to growth in household and commercial demand, which increased by 3.2%.
In the year to date, demand for natural gas in Spain has grown by 20% on the same period in 2016, as a result of the cold snap, among others. Demand for gas on 19 January peaked at record levels not seen since February 2012, while total demand was met as normal thanks to the part played by the company’s underground storage facilities and regasification plants.
Demand for natural gas for power generation is growing by 32% in 2017, which highlights the essential role played by natural gas in guaranteeing power supply.
