Q2 2024 Enagas SA Earnings Call Transcript
Key Points
- Enagas SA (ENGGF) has successfully divested its 30.2% stake in Tallgrass Energy for $1.1 billion, strengthening its balance sheet and reducing debt by approximately EUR2.4 billion.
- The company is strategically positioned to invest in green hydrogen infrastructure, with significant progress in major hydrogen projects selected as European Projects of Common Interest.
- Enagas SA (ENGGF) has maintained a strong financial performance, with EBITDA up 3.7% year-on-year and a 10% increase in net profit excluding asset sales.
- The company's efficiency plan has effectively controlled operating expenses, keeping them in line with strategic goals.
- Enagas SA (ENGGF) has received positive recognition from rating agencies, with Fitch upgrading its rating from BBB to BBB+ and Moody's raising its outlook to positive.
- The sale of the Tallgrass stake resulted in an expected capital loss of approximately EUR360 million, impacting after-tax profit negatively.
- Total demand for gas in the first half of 2024 decreased by 7.2% year-on-year, primarily due to increased renewable energy contributions and high winter temperatures.
- The arbitration proceedings in Peru remain unresolved, with uncertainty around the timing and outcome of the award.
- The company's future dividend sustainability beyond 2026 is contingent on maintaining a payout ratio of around 40%, with potential fluctuations in financial performance.
- There is uncertainty regarding the approval and content of the 2023-2030 National Energy and Climate Plan, which could impact future investment strategies.
Good morning, ladies and gentlemen, and welcome to this Earnings Presentation for Enagas for six months of 2024. Our earnings were disclosed this morning before the market opened, and the figures are available on our website, enagas.es. Arturo Gonzalo, as Chief Executive Officer of Enagas, will run through the figures with you. We expect this presentation to take about 15 minutes, after which we will open a Q&A in which we will try and answer your questions in as much detail as possible. Thank you very much for your attention, and I'm going to give the floor to Arturo.
Good morning, ladies and gentlemen, and thank you very much for your attention. I also would like to welcome you to this earnings presentation for our first six months of 2024. And here with me are our CFO, Luis Romero; our Board Secretary and CLO, Diego Trillo; our Chief Officer of Communications, Institutional and Investor Relations, Felisa Martin; our Head of Investor Relations, Cesar Garcia; and our Head of Management Control and Business Analysis, Natalia
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