Enagás’ 2016 profit edges up

Spanish LNG terminal operator, Enagás reported a net profit of €417.2 million (Approx: US$443 million) in 2016, 1,1 percent up on the year before. 

This increase was mainly due to the contribution from its investee companies, Enagás said in its report, noting that the international projects made a 10 percent contribution to the 2016 net profit.

In 2016 Enagás invested 912 million euros in assets in which the company already held a stake.

Gas demand

Spanish demand for natural gas in 2016 grew by 2.1 percent on 2015, reaching 321,495 GWh, which showed an increase for the second year running, according to Enagás.

This growth was essentially due to demand by industry, the main consumer of gas natural, which rose by 3.3 percent.

In the year to date, demand for natural gas in Spain has grown by 20 percent on the same period in 2016, as a result of the cold snap, among others, reaching highest levels since February 2012.

Demand for natural gas for power generation is growing by 32 percent in 2017.

Outlook

The company expects the gas to continue playing an important role as a low emissions fuel.

“Enagás will continue its efforts to develop and operate gas and LNG infrastructure in growth markets in which the company has a presence,” the reports reads.

The company intends to invest a total of €1.45 billion until 2020, and achieve growth in its average accumulated profit of 3 to 4 percent in the period from 2017 to 2020.

Enagás’s forecast for this period points to an annual average increase of 3.5 percent in the demand for gas in Spain, due mainly to an improved economic setting and greater penetration of gas in the energy matrix.

For the year 2017, the company intends to invest about €650 million and end the year with a net profit growth of approximately 5 percent.

1 EUR = 1.06200 USD