Enagás, a leading player in the energy sector, recorded a notable loss of €299.3 million in 2024. This development arises from impactful decisions including the sale of its stake in Tallgrass Energy and unfavorable arbitration outcomes in Peru.
The strategic move to divest from Tallgrass resulted in a €356.2 million financial dip due to accounting adjustments, accompanied by a €7.5 million negative tax impact. These challenges come at a time when Enagás is recalibrating its focus towards future investments in hydrogen technology by 2027.
Despite the setback in overall financial performance, Enagás succeeded in reducing its net debt by €943 million, representing a 28.2% decrease from the previous year. This reduction positions the company more favorably for upcoming strategic investments. The financial report also highlights a €310.1 million post-tax profit, excluding extraordinary impairments, marking a 3.2% increase over 2023 and outperforming annual targets.
The company’s total revenue reached €913.2 million, reflecting a 0.7% decrease, attributed chiefly to regulatory framework impacts. Nonetheless, some revenue decline was cushioned by increased regulated income. Operating profit as measured by EBITDA fell by 2.5% to €760.7 million, an indicator of the ongoing challenges within operating efficiency and market conditions.
Financial losses apart from extraordinary items stood at €58.9 million. This was largely offset by stronger financial income and reduced debt-related expenses. Funds from the Tallgrass stake sale were strategically utilized to prepay $700 million in bank debt, with remaining liquidity used to service a €600 million bond.
Investment activities saw a net outflow of €770.9 million, with significant asset rotations. This included a pivotal move to sell its Tallgrass stake for $1.1 billion in July, underlining its commitment to streamline operations and reinforce financial health.
Looking ahead, Enagás is poised to update its strategic blueprint with a clear focus on hydrogen, evidenced by its status as a provisional operator and involvement in the H2med project, a beneficiary of EU interest. Regulatory clearance has been obtained, and full EU funding is anticipated by 2025, providing substantial traction for their renewable hydrogen agenda.
On the legal front, Enagás achieved a positive verdict in the ICSID arbitration with Peru, securing $194 million, reinforcing the protection of its investment interests and fortifying its resolve in complex international negotiations.
Simultaneously, the firm continues to prioritize efficiency, controlling operational expenses and capping growth ambitions within a 1% ceiling for the 2022-2026 period. This frugality, coupled with revenue improvements, is anticipated to enhance financial outcomes as the company pilots toward its longer-term objectives. The in-depth insights and ongoing recalibrations highlight Enagás’s strategic adaptability in navigating the evolving energy landscape.
