2014 results and 2015 -2017 strategic update: Enagás reported net profit of €406.5Mn

24 February 2015

• The company meets its targets for the eighth consecutive year
• Enagás plans to invest an average of €430Mn per year over the 2015-2017 period, with international projects accounting for 50% of the total
• The company maintains its growth drivers and reaffirms its strategic and financial goals  
• Currently pledged international investment will account for less than 13% of net profit in 2017
• Enagás will pay a dividend of €1.32 per share in 2015 and maintain 5% dividend growth in 2016 and 2017
• Annual gas demand in Spain is forecast to grow by an average of 4% annually over the 2015-2017 period
• Enagás will step up its commitment to sustainability as a driver of the company's business development.
• Maintaining our current credit ratings with Standard & Poor's (BBB) and Fitch Ratings (A-) is a strategic priority

2014 results

Enagás reported full-year 2014 net profit of €406.5Mn, a 0.8% increase on 2013. These results include the impact of Royal Decree Law 8/2014, of 4 July, approving urgent measures for growth, competitiveness and efficiency, which is in line with the company's forecasts.

The rise in net profit was mainly due to Enagás' efforts to improve efficiency, the extension of the useful life of assets and the contribution of its international operations, in particular of Transportadora de Gas del Perú (TgP). These factors helped to cushion the impact of regulatory reform.

In 2014, Enagás invested €625Mn, in line with its goal for the year. Of this amount, 76% was invested internationally. Especially noteworthy is the company's entry into the Peruvian market with the acquisitions of 20% of Transportadora de Gas del Perú (TgP) and 30% of Compañía Operadora de Gas del Amazonas (COGA) and the award of a 25% stake in the Gasoducto Sur Peruano pipeline project in consortium with Odebrecht.  Enagás also secured a 16% stake in the Trans Adriatic Pipeline project. This pipeline will play a pivotal role in the integration of the European gas market, linking Turkey with Italy via Greece, Albania and the Adriatic Sea.

The company has a healthy balance sheet and a robust financial structure. At 31 December 2014, Enagás' liquidity, in terms of cash and untapped available financing, amounted to €2.44Bn. Net debt at 31 December amounted to €4.06Bn, of which 81% was at fixed rates.

A dividend of €1.30 per share from 2014 net profit will be proposed at the upcoming General Shareholders' Meeting, up 2.4% compared with 2013. 

Enagás was the third best performer on the Ibex-35 in 2014, rising 38%.

The company met its objectives for the eighth consecutive year in 2014.


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