Enagas Net Profit Up 6.2 Pct, Spain

Enagás reported net profit of €403.2Mn for 2013, up 6.2% on the €379.5Mn reported in 2012. This figure is slightly higher than the full-year target owing to the drive to control operating costs, the improvement in the average borrowing cost and the integration of the acqusitions carried out. The international assets acquired accounted for 30% of the growth in net profit.

Enagás invested €531Mn in 2013. Over the course of the year, the company completed the Zarza de Tajo-Yela and Bilbao-Treto pipelines in Spain and acquired 90% of Naturgas Transporte. Furthermore, in the international arena Enagás consolidated its stake in the Quintero LNG plant in Chile, in which it holds a majority interest, and won the contract to build and operate the Soto La Marina compression station in Mexico.

The company has a healthy balance sheet and financial structure. At 31 December 2013, Enagás’ liquidity, in terms of cash and untapped available financing, amounted to €2.1Bn, with 72% of debt at fixed rates.

The financial policy implemented by Enagás in 2013 allowed it extend average debt maturity and to negotiate an average cost lower than the annual target that is one of the lowest among non-financial entities on Spain’s Ibex-35 index.